The rise of generative AI tools is significantly increasing shadow IT risks, as highlighted by recent findings from Gartner, which revealed that the number of SaaS applications used per employee has doubled since 2019. Many of these applications are utilized without IT oversight, leaving sensitive data vulnerable. Fred Rivain, CTO of Dashlane, emphasizes that traditional security measures like single sign-on and multifactor authentication are no longer sufficient to manage the surge of unauthorized tools. With employees often sharing their credentials, the need for effective credential management has never been more critical. Rivain also discusses the potential of passkeys, a passwordless authentication method supported by the FIDO Alliance, to enhance security, though challenges remain in widespread adoption.
Why do we care?
Generative AI is changing how employees work, but without proper controls, it also increases the risks of data leakage. The rise in generative AI tools and increased SaaS usage is drastically expanding shadow IT risks, leaving traditional security measures like SSO and MFA inadequate. For MSPs and IT service providers, this evolving landscape highlights a need for robust credential management, modernized security strategies, and early adoption of cutting-edge technologies like passkeys. Make sure there’s data governance to bring it all together.