Shadow AI is just the new shadow IT—here’s why a SaaS-first approach wins

Every wave of workplace technology creates new risks—and new buzzwords. Today, “shadow AI” is the term on everyone’s lips. Security leaders are rightly concerned about employees experimenting with unvetted AI tools, from generative AI chatbots to Chrome extensions and AI-powered SaaS add-ons.

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The risks are real: sensitive data leaks, compliance gaps, and a rapidly expanding attack surface. But here’s the catch: shadow AI isn’t a brand-new problem. It’s simply the latest evolution of shadow IT.

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Shadow IT, now with AI inside

The story feels familiar. Over the last decade, the trend of employees adopting SaaS tools outside IT’s purview has accelerated, including all manner of project management platforms, file-sharing apps, marketing automation software. This unsanctioned adoption created shadow IT, a sprawling web of unknown vendors and unmanaged data access.

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Now, SaaS has entered its AI era. From productivity platforms with built-in AI copilots to niche apps powered by large language models, AI features are becoming inseparable from SaaS adoption. Shadow AI doesn’t live in a separate category. It lives inside your SaaS ecosystem.

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Why narrow “shadow AI” tools miss the mark

Some vendors promise “shadow AI discovery” as if AI were an isolated problem. In reality, employees don’t adopt “AI” in the abstract—they adopt SaaS applications that increasingly come with AI embedded. A narrow lens risks missing the bigger picture:

• Unapproved SaaS adoption that introduces hidden vendors.
• AI features inside mainstream apps (Salesforce, Slack, Notion, etc.).
• Sensitive data access that extends beyond prompts into entire SaaS supply chains.
• MCP servers and other integrations provide AI tools with broad data access.

If you only chase browser-based AI use, you’ll miss the much larger sprawl of AI hidden within your SaaS ecosystem. (Read our overview of AI discovery tools here.)

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Why a SaaS-first approach wins

Organizations that are already addressing shadow SaaS are in the strongest position to handle shadow AI. By taking a SaaS-first approach, you can:

• Continuously discover every SaaS and AI tool in use, sanctioned or not.
• Map vendor relationships and data flows, including AI-powered integrations.
• Assess risk at the application and vendor level, not just the feature level.
• Enforce governance and access controls across your entire SaaS ecosystem.

The bottom line on shadow AI

Shadow AI may be the new buzzword, but the underlying challenge is not new. It’s the same problem security teams have been tackling for years: unsanctioned SaaS adoption. The only strategy that scales is a SaaS-first approach that delivers visibility, risk assessment, and governance across the entire ecosystem.

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Because if you can’t see and secure your SaaS, you’ll never get ahead of AI risk.

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How Nudge Security helps

At Nudge Security, we take this SaaS-first view. Our platform automatically discovers all SaaS applications and AI tools in use across your organization—even those adopted outside IT’s control. We provide vendor risk insights, track SaaS supply chain dependencies, uncover integrations that allow data access for AI tools, and highlight where AI features create new risks to sensitive data and identities.

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By building AI governance on top of SaaS visibility, Nudge Security helps organizations stay ahead of shadow AI, shadow IT, and whatever other “shadows” are lurking ahead.