Evolving SaaS Security: Managing Risks of Unmanaged Apps and AI Tools

November 4, 2024

The rapid expansion of Software as a Service (SaaS) applications and AI tools has revolutionized the way enterprises operate, ushering in new levels of efficiency and innovation. However, this significant growth has also introduced substantial security challenges, particularly with unmanaged applications and tools that fall outside the oversight of IT departments. Grip Security’s “2025 SaaS Security Risks” report sheds light on these emerging threats and underscores the necessity for evolved security strategies to cope with the complexity of modern SaaS environments.

The Rise of Unmanaged SaaS Applications and AI Tools

The report reveals a staggering statistic: 90% of SaaS applications and 91% of AI tools within organizations are unmanaged, significantly heightening vulnerability. These unmanaged applications and tools operate beyond the traditional security perimeter, meaning they are not subject to the same security protocols and oversight as managed ones. This unmanaged nature is encapsulated by the terms “Shadow SaaS” and “Shadow AI,” which aptly describe the phenomenon where operational needs are met outside the purview of IT governance. As the number of these unmanaged entities continues to grow, so does the potential for security incidents, making organizations even more susceptible to data breaches and other cyber threats.

The lack of control over unmanaged applications can lead to significant security lapses. For instance, these applications might not receive essential security updates or be monitored for suspicious activities consistently, thus creating weak points in an enterprise’s overall security framework. As IT departments struggle to keep up with the proliferation of these tools, the collective risk grows, and the likelihood of encountering a security breach becomes almost inevitable. The findings underscore the dire need for revised security strategies that incorporate effective management of these unmanaged software applications and AI tools.

Explosive Growth in SaaS Usage

Over the last couple of years, enterprises have witnessed a 40% increase in the number of SaaS applications used, further highlighted by an astonishing 85% rise in the number of accounts per user. This dramatic growth indicates a shift where employees are increasingly relying on multiple SaaS applications to perform their daily tasks, often without obtaining the knowledge or approval of their IT departments. Such behavior can lead to a fragmented security landscape where diverse applications have varying levels of security measures, making it challenging for IT teams to monitor and manage them effectively.

The unmonitored and uncoordinated use of numerous SaaS applications creates a patchwork security environment. Each application may adhere to different security protocols, and the absence of a unified security approach significantly complicates the task of maintaining a robust defense against cyber threats. Consequently, IT departments find themselves overwhelmed, struggling to set uniform safeguards across an increasingly diffuse array of applications. This proliferation increases the risk of security breaches and data leaks, as more applications operate outside the established security framework, making enterprises vulnerable to sophisticated cyber-attacks.

Provisioned but Unused SaaS Licenses

Despite provisioning numerous SaaS application licenses, the report found that 73% of users never utilize their allotted licenses, posing a significant security risk. These dormant accounts can become easy targets for cyber attackers, as they are often neglected, lacking regular monitoring and updates. The presence of these unused accounts highlights inefficiencies in current SaaS management practices, where the emphasis has been more on provisioning rather than actual usage and oversight.

Dormant accounts present a security vulnerability that is often overlooked. They can be exploited by cybercriminals for malicious activities, gaining access through neglected backdoors within an organization’s cloud infrastructure. This reality surfaces the critical need for organizations to develop strategies to identify and deactivate these unused accounts. Implementing such measures helps close unnecessary loopholes and ensures that only active and essential accounts are maintained, thereby decreasing the potential attack surface for cyber threats. Emphasizing efficient license usage aligns not only with enhanced security but also with cost-effectiveness and operational efficiency.

The Proliferation of AI Tools

AI tools, such as ChatGPT, have become widespread, with 96% of analyzed organizations incorporating them into their workflows. The rapid adoption of these tools, which has escalated 24-fold since their launch, underscores their growing importance in enhancing productivity and operational efficiency. However, the rise of unmanaged AI tools adds another layer of security risk, as many of these popular applications possess Security Assertion Markup Language (SAML) capabilities but are not managed or federated.

Unmanaged AI tools present unique challenges due to their advanced capabilities and integration points within an organization’s digital ecosystem. Without adequate management and integration into existing security frameworks, these tools can become gateways for unauthorized access and data breaches. The report’s findings that 80% of AI tools are not managed or federated highlight a critical gap in current security practices. Organizations must prioritize the management and security of AI tools by incorporating them into robust identity and access management (IAM) systems that ensure only authorized access and mitigate the risks posed by these powerful technologies.

Inadequacy of Traditional Security Tools

Traditional security measures, such as Cloud Access Security Brokers (CASBs), have come under criticism in the report for their insufficiency in handling the complexities of modern SaaS environments. These tools often generate excessive data noise and false positives, detracting from addressing real threats. This inefficiency underscores the urgent need for more sophisticated, identity-driven security solutions that are better equipped to manage the dynamic and fast-evolving threat landscape presented by SaaS and AI environments.

The inadequacy of traditional security tools becomes evident in their inability to keep pace with the rapid development and deployment of new SaaS applications and AI tools. Designed for a bygone era of IT management, these tools struggle to provide meaningful protection in today’s context, where agility and real-time response are paramount. A shift towards adaptive and integrative security strategies is essential. This means embracing new methodologies that leverage identity management as a core principle, thus providing a more granular and context-aware approach to securing an enterprise’s digital assets and operations.

The Need for Real-Time Visibility

To effectively manage and mitigate the risks associated with unmanaged SaaS applications and AI tools, businesses must develop real-time visibility into their SaaS environments. Enhanced visibility allows for the identification and control of unmanaged applications, significantly reducing potential security breaches and inefficiencies. Real-time visibility enables IT departments to continuously monitor the usage and security status of all SaaS applications and AI tools within the organization, facilitating a proactive approach to security management.

Having comprehensive, real-time insights into the SaaS landscape empowers IT teams to swiftly identify and address any emerging security issues. This proactive stance not only enhances overall security but also improves operational efficiency, as potential problems can be mitigated before they escalate into significant incidents. Real-time visibility ensures that the organization maintains a clear and thorough understanding of its digital ecosystem, thereby fortifying the enterprise against the ever-evolving threat landscape. Thus, adopting tools and practices that support real-time monitoring is a vital step in closing the gap between emerging threats and existing security measures.

Embracing a Holistic, Identity-Driven Security Approach

The report emphasizes the importance of an identity-centric approach to managing SaaS security risks. By using identity as the key control point, organizations can secure SaaS adoption while mitigating risks associated with unmanaged applications. This involves implementing robust identity and access management (IAM) solutions that ensure only authorized users can access sensitive data and applications, thereby providing an additional layer of security.

An identity-driven security approach does not just focus on outer defenses but integrates security deeply within the operational framework of the organization. This approach necessitates a shift towards using identity as the primary vector for managing and controlling access. By prioritizing identity management, companies can create a seamless and secure user experience that is both efficient and robust. It allows for more comprehensive oversight and control, ensuring that access to critical resources is tightly monitored and compliant with organizational policies, thereby mitigating risks and improving security posture across all SaaS and AI applications.

Conclusion

The explosive growth of Software as a Service (SaaS) applications and AI tools has fundamentally changed how businesses function, driving new levels of efficiency and innovation. However, this rapid expansion also brings significant security challenges, particularly with applications and tools that aren’t managed or monitored by IT departments. According to Grip Security’s “2025 SaaS Security Risks” report, these emerging threats highlight the critical need for modern, evolved security strategies to address the complexities of contemporary SaaS environments.

As SaaS applications become more integral to business processes, their widespread use can create blind spots in security protocols. Unmanaged applications, in particular, pose risks because they operate outside the purview of traditional IT oversight. The Grip Security report emphasizes that without updated security measures, companies may find themselves vulnerable to data breaches or other cyber threats. Businesses must adopt comprehensive security plans that can adapt to the evolving landscape of SaaS and AI technologies to safeguard their operations effectively.

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