Shining a Light on Shadow AI: Reco’s Mission to Eliminate the Blind Spot

AI technology is rapidly infiltrating workplaces at an unprecedented pace, surpassing the adoption rates of any other recent technological advancements. Employees are frequently integrating AI tools into enterprise systems without proper authorization or oversight from IT security teams. This phenomenon, known as shadow AI, has led to a proliferation of unmonitored tools and integrations accessing sensitive company data.

Dr. Tal Shapira, the Co-founder and CTO of Reco, a SaaS security and AI governance solution provider, warns that this invisible expansion of AI could pose a significant threat to organizations. The rapid adoption of AI has outpaced the implementation of adequate governance frameworks, leaving companies vulnerable to security breaches.

According to Shapira, traditional corporate security systems were designed for a different era where everything remained within firewalls and network boundaries. Shadow AI disrupts this model by operating from within the organization, concealed within existing tools.

Many modern AI tools seamlessly integrate with popular SaaS platforms like Salesforce, Slack, and Google Workspace. While this integration is not inherently risky, AI often retains permissions and plug-ins that continue to access company data even after the initial setup, posing a significant shadow AI threat.

Shapira highlights the challenge of tracking these risks, as many AI systems operate on probabilistic algorithms, making their actions unpredictable and harder to monitor and control.

The invisible risk inside company systems

Shapira emphasizes that the insidious nature of shadow AI lies in its ability to embed itself within a company’s infrastructure undetected for extended periods, sometimes months or even years.

The difficulty in identifying and monitoring these tools is compounded by the fact that many AI systems make predictions based on patterns rather than executing explicit commands, further complicating oversight and control.

When AI goes rogue

Real-world incidents have already demonstrated the damaging impact of shadow AI. Reco recently collaborated with a Fortune 100 financial firm that discovered over 1,000 unauthorized third-party integrations in its Salesforce and Microsoft 365 environments, with more than half powered by AI, exposing sensitive customer data.

One alarming case involved a transcription tool connected to Zoom that recorded confidential customer calls without consent, while another incident saw an employee linking an AI tool directly to Salesforce, inadvertently exposing internal reports and customer information.

How Reco detects the undetected

Reco’s platform provides comprehensive visibility into AI tools connected to company systems and their data access permissions. By continuously scanning SaaS environments for OAuth grants, third-party apps, and browser extensions, Reco identifies suspicious behavior and alerts administrators or revokes access automatically.

Unlike traditional security solutions focused on network boundaries, Reco prioritizes identity and access management, making it well-suited for modern cloud-centric organizations where data resides outside traditional firewalls.

A wider security wake-up call

Industry experts recognize Reco’s approach as part of a broader shift in enterprise security towards governing AI rather than simply blocking it. A recent Cisco report on AI readiness revealed that the majority of organizations lack visibility into AI tool usage, leading to data incidents.

As AI features become increasingly integrated into mainstream software, organizations face the challenge of recognizing and regulating AI-driven functionalities that may access data without explicit consent.

Reco’s monitoring system helps companies gain insights into sanctioned and unsanctioned AI activities, enabling better data flow management and risk mitigation.

Harnessing AI securely

Shapira foresees a future where AI will be ubiquitous in every business tool, necessitating continuous monitoring, restricted access, and limited permissions to ensure data security.

Successful companies will embrace AI cautiously, implementing safeguards that balance innovation with trust. Shadow AI, Shapira argues, reflects the rapid evolution of technology rather than employee negligence.

For enterprises seeking to leverage AI responsibly, Reco’s advice is clear: visibility is paramount in securing data effectively.

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