AI adoption is progressing at a rapid pace. What started as a trickle of generative tools is now a flood of autonomous agents, custom copilots, and AI-powered SaaS, most of it entering the workplace faster than IT can keep track of.

And that’s a problem. According to a recent Komprise survey, 90% of IT leaders are concerned about Shadow AI — unauthorized AI tools and plugins flying under the radar of IT policies. Worse, 13% have already reported financial or reputational damage as a direct result. As AI becomes more embedded in our everyday workflows, IT visibility isn’t just an operational nice-to-have but a security and compliance must-have.

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The rise of shadow AI and its hidden risks 

Shadow AI refers to any AI tools, apps, or plugins that employees use without approval from IT. Think ChatGPT plugins, browser extensions, or unvetted AI-powered SaaS — tools that bypass security controls and operate outside of IT’s line of sight. And it’s happening everywhere: 75% of knowledge workers are already using AI tools, and 46% say they wouldn’t stop even if their employer told them to. Worse, a study found that 38% of employees have shared sensitive data with AI tools without permission. It’s no wonder shadow AI has become one of the top concerns for IT leaders.

These risks are no longer hypothetical. In July 2024, Disney suffered a major security breach after an employee downloaded an AI tool from GitHub that was laced with malware. The result? Over 44 million internal messages were leaked, including sensitive company information and personal data. In another real-world example, one Reddit user shared that their company was forced to block ChatGPT completely after a data breach tied to misuse.

And these incidents aren’t isolated. A recent survey found that nearly 80% of IT leaders have experienced negative outcomes from employee use of generative AI — including false or inaccurate results (46%), sensitive data leaks (44%), and in some cases, financial, customer, or reputational damage (13%). These outcomes demonstrate how quickly the risks of shadow AI can transition from inconvenient to costly.

The core issue? Traditional monitoring tools weren’t built for this kind of threat. While they can detect known malware or sanctioned apps, they often miss rogue browser plugins, shadow AI tools, and unauthorized SaaS platforms operating over encrypted traffic. Without the right visibility, IT teams are left chasing problems they can’t see.

And when those problems surface, they tend to look like this:

  • Data leaks and exposure of sensitive information
  • Compliance violations and regulatory consequences
  • Malware delivered via unvetted AI tools
  • Reputational damage and loss of customer trust
  • Productivity trade-offs due to reactionary bans

AI may be evolving faster than governance can keep up, but visibility into the tools your teams are using is the first and most critical step toward getting back in control.

Why visibility is the only way to detect and manage shadow AI 

You can’t secure what you can’t see. Shadow AI thrives in blind spots — tools installed by employees, browser extensions with unknown permissions, or AI apps quietly introduced through unsanctioned SaaS platforms. Without visibility across your network and cloud environment, there’s no way to know what tools are in use, who’s using them, or what data they’re accessing. By the time issues surface, such as a breach or compliance violation, the damage is already done.

Real-time monitoring gives IT teams a fighting chance. It enables you to detect anomalies as they happen, not after the fact. This includes spotting unusual traffic patterns, unauthorized access points, or new SaaS logins that haven’t gone through proper channels. With early insight, you can act quickly — whether that means investigating a suspicious plugin, revoking access, or putting guardrails in place to protect sensitive data. Rather than banning tools outright and hindering productivity as a result, IT visibility makes it possible to take a more nuanced approach.

That’s where tools like Auvik come in. With deep network visibility and SaaS discovery built into one platform, visibility tools can help your IT team uncover hidden risks, flag unauthorized tools, and stay ahead of emerging threats. It’s the visibility needed to keep Shadow AI in check and keep your environment secure.

Beyond shadow AI: Visibility’s role in future-proofing IT 

The challenges created by Shadow AI are just the tip of the iceberg. As IT continues to evolve through hybrid work models, multicloud adoption, and a massive SaaS explosion, environments are becoming increasingly complex and distributed. In fact, recent shadow IT statistics show that 41% of employees are using technology outside IT’s awareness — a number Gartner expects to grow to 75% by 2027. To combat the risk, 30-40% of IT budgets are now allocated to shadow IT. Visibility is the thread that ties these trends together, giving IT leaders a clearer picture of what’s in play and where vulnerabilities exist.

That’s especially true when adopting AI across the business. To support teams using generative tools and AI-powered platforms, IT needs a clear view of what’s being used, who’s using it, and where the data is going. They also need to have a hold on all company data and where it’s being stored. This visibility helps spot surprises early, keep policies consistent, and guide smarter decisions. Instead of reacting to every new tool with a ban, IT can take a more informed, balanced approach.

Ultimately, IT visibility is the backbone of a resilient IT organization. Whether preparing for unplanned security events, adapting to tighter data regulations, or scaling new AI systems, visibility gives teams the situational awareness to respond with confidence. While the tools may evolve, the need for visibility is here to stay.

What’s your shadow IT & AI risk factor?

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What leaders are doing to close the IT visibility gap 

Closing the IT visibility gap has become a top priority, and IT teams are getting proactive about it. More organizations are turning to tools that offer real-time SaaS discovery, continuous monitoring, and policy enforcement that scale. Manual audits and spreadsheets are being replaced with automated platforms that span networks, endpoints, and SaaS environments. This shift is helping teams spot shadow AI tools early, strengthen their security posture, meet cybersecurity insurance requirements, and get better control over SaaS sprawl and spend.

Continuous SaaS discovery across the enterprise

Shadow IT isn’t slowing down — studies show that 69% of employees bypass cybersecurity guidance, and in a world of distributed and BYOD devices, managing risk is complex. In response, organizations are investing in automated SaaS discovery tools that provide a real-time view of what apps are in use, by what devices/users, and at what level of risk. This goes beyond simple inventories, offering dynamic detection and usage tracking across cloud environments.

Centralizing visibility to reduce costs and complexity

With organizations now using an average of 106 SaaS applications, many of them overlapping in functionality, centralized SaaS visibility is becoming a key lever to control both security and spend. By consolidating usage data and surfacing redundancy, IT teams can negotiate smarter renewals, decommission underused tools, and align licensing with actual needs. 

Pairing AI and automation with human oversight

While AI is introducing new risks, it’s also becoming part of the solution. IT teams are using AI-enhanced monitoring and analytics to spot anomalies and surface unusual behaviour across their environments. These tools are helping IT scale SaaS and network visibility without drowning in alerts and enabling faster, more informed decisions. 

Embedding visibility into policy and access control

Rather than reacting after a risk has materialized, forward-thinking IT teams are shifting to proactive access control strategies informed by real-time visibility into user behavior. Some organizations are implementing rules that trigger screen recordings when users navigate to URLs associated with generative AI tools. Others are experimenting with dynamic access policies — automatically closing browser tabs or issuing warnings when restricted users attempt to access certain AI sites. These controls can be tailored based on group membership or user roles, enabling a more flexible and targeted approach to governance than broad, blanket restrictions.

Investing in user training to reduce risk

Technology solutions alone can’t eliminate the risks posed by ungoverned AI use — users need to understand the risks and how to navigate them. To that end, many IT departments are rolling out internal training programs to raise awareness around shadow AI and promote responsible usage of approved tools. Some organizations have even introduced certification requirements, where employees must complete security awareness-style courses before gaining access to sanctioned AI tools. This education-first approach empowers users while reinforcing data protection standards across the business.

Exploring internal or private LLMs for safer AI adoption

Some organizations are taking things a step further by developing their own internal or private large language models (LLMs). These models allow teams to tap into the benefits of generative AI without sending sensitive data to third-party providers. By running models on private infrastructure or using vendor tools that prioritize data residency and access control, IT teams can maintain visibility and security while still enabling AI-driven productivity.

How to start making visibility your top priority in 2025

Addressing the visibility gap isn’t just about locking things down — it’s about knowing what’s happening in your environment and responding in real time. Here’s how to get started:

  1. Use Auvik SaaS Management to uncover shadow AI

Begin by running a SaaS discovery sweep. Auvik’s SaaS Management surfaces apps employees are using without IT approval, including AI tools and cloud services that might be handling sensitive data. This gives you a live inventory of what’s actually in use across the organization, helping you identify risk without relying on guesswork.

  1. Pinpoint high-risk tools using usage data and categories

Not all tools present the same risk. With Auvik, you can see how often an app is used and who’s using it, applying these insights to categorize the risk (e.g., whether the tool is being used for something less risky, like graphic design, or more data-sensitive like finance). This helps you focus your attention on unsanctioned tools accessing critical systems or sensitive data, so you can prioritize action where it matters most.

  1. Set up real-time alerts and thresholds for network behavior

Auvik’s real-time monitoring helps you catch abnormal usage patterns like unexpected spikes in outbound traffic to AI platforms. You can set thresholds, receive alerts, and dig into traffic data to spot signs of shadow AI before it becomes a breach. 

  1. Monitor SaaS usage over time to inform policy decisions

SaaS visibility is a long game. With Auvik, you can track SaaS and shadow AI usage trends over time, helping you understand what’s gaining traction and which tools may require formal evaluation or vendor management. This usage data supports smarter decisions around approvals, renewals, and security reviews.

  1. Bring it all together with a centralized visibility strategy

Auvik brings both your network and SaaS environment into one view, so you’re not toggling between tools or missing half the picture. Centralized visibility helps your team move faster, enforce policies more consistently, and respond to evolving AI risks with confidence.

Take control of your IT visibility with Auvik

Shadow AI, SaaS sprawl, and hybrid infrastructure are making IT environments harder to manage and riskier. Without visibility, it’s impossible to know what tools are in use, where data is going, or how to stay ahead of threats.

Auvik gives you the clarity you need. With deep network and SaaS visibility, you can detect shadow AI tools, monitor usage in real time, and enforce policies that protect your business. Learn more about Auvik SaaS Management today by scheduling a demo

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Try Auvik SaaS Management now

Take the first step in reclaiming control over your SaaS environment.

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