Recent data reveals that artificial intelligence is fueling a surge in employee-led software use, leading to increased governance challenges. Despite many predictions of enterprise software decline, AI-first tools are causing SaaS sprawl to accelerate instead of shrink. Companies are now managing more applications than ever, with many operating outside traditional IT oversight.

AI Accelerates Software Adoption and Risks

According to Torii’s latest SaaS Benchmark Report, the average organization now runs over 830 applications, with more than 61% managed without formal IT approval. This trend shows that AI-driven experimentation is expanding the long tail of unmanaged software. Instead of cutting down on tools, employees are adopting new AI-based apps quickly, often bypassing existing governance measures.

Uri Haramati, CEO of Torii, explains that AI isn’t replacing software but speeding up its adoption. Employees are bringing in tools faster than IT policies can adapt, creating more governance and security issues. The rapid growth of SaaS applications is driven by AI-first tools moving from experimental to essential, making shadow IT more widespread and harder to control.

Shadow AI: A New Frontier in Unmanaged Software

Torii’s data shows that AI-native tools are now among the fastest-growing sources of shadow IT. Over half of the most popular shadow applications are AI-first, many of which connect directly to company data using OAuth permissions and instant integrations. These tools often skip procurement, security checks, and identity controls, increasing the risk profile of unmanaged software.

Haramati notes that while AI didn’t create shadow IT, it has significantly increased its speed and reach. AI tools can gain broad access quickly and tend to stay in use long after teams stop actively relying on them. This makes the blast radius of shadow AI larger and more dangerous for organizations trying to manage their software environments.

Application Growth Is Larger and More Fragmented Than Thought

Torii’s analysis indicates that enterprise application growth is much bigger and more fragmented than many organizations realize. Large companies often operate thousands of applications; for example, the average enterprise manages around 2,191 apps. The median number is 680, showing a wide spread. On average, employees interact with about 40 different applications daily.

Most applications—over 61%—are classified as shadow IT, meaning they are used without formal approval. Only around 15% are officially sanctioned, with the rest existing in ambiguous states like being blocked or in trial phases. This fragmentation makes it difficult for IT teams to maintain control and security across all software used within the organization.

In summary, AI is reshaping how software is adopted within enterprises, pushing shadow IT to new levels of size and complexity. Organizations need to rethink their governance strategies to keep up with this rapid, AI-fueled growth of unmanaged applications and protect their data and security. Staying aware of these trends is crucial in managing the evolving software landscape effectively.

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• https://ai-techpark.com/torii-2026-ai-expands-shadow-it-not-saas-cuts/