SaaS Governance Tightens amid Decline in Shadow IT: Report


ChatGPT has emerged as a frontrunner in the battle against shadow IT within organizations, as indicated by a recent report. In response to tightened budgets, companies ramped up efforts to rein in SaaS sprawl and regulate unchecked application adoption in the past year.

According to the report, organizations managed to trim their application portfolios by a significant 10% year over year, bringing the average number down to 342 from 374 in 2022. This reduction also extended to shadow IT, with the percentage of unauthorized SaaS tools identified dropping to 48% of the overall enterprise application suite, down from a previous high of 53%.

Shadow IT is defined as non-managed applications that slip under the radar, whether through network monitoring tools, expenses, or Google single sign-on. These rogue applications pose a challenge for companies striving to maintain control over their IT landscapes.

A notable development highlighted in the report is the growing threat posed by LLM-powered tools and generative AI add-ons in the realm of SaaS governance. Many vendors have incorporated AI capabilities into commonly used shadow IT apps like LinkedIn, Canva, and Evernote, complicating the task of maintaining oversight and compliance.

While the rapid adoption of new technologies by employees presents a governance hurdle for organizations, enterprise leaders are keen on catching up rather than stifling innovation. The emphasis is on encouraging employees to seek formal approval before embracing a new tool, rather than outright rejecting their use.

In conclusion, the evolving landscape of shadow IT calls for a proactive approach from organizations to stay ahead of governance challenges. By leveraging insights from reports like this one, companies can adapt their strategies to manage SaaS sprawl effectively and maintain control over their application ecosystems.

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Aniket Patel
Aniket Patel
Aniket is a skilled writer at ChatGPT Global News, contributing to the ChatGPT News category. With a passion for exploring the diverse applications of ChatGPT, Aniket brings informative and engaging content to our readers. His articles cover a wide range of topics, showcasing the versatility and impact of ChatGPT in various domains.

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