How to Catch AI Tools Running Silently in Your Organization

AI tools like ChatGPT, Grammarly, and Notion AI are becoming common in the workplace. Employees often start using them to get work done faster, writing emails, analyzing data, or automating tasks. 

A recent survey found nearly half of all knowledge workers use personal AI tools during work, driven by the lack of employer-approved options or the desire for more flexible solutions.

But in most cases, employees use AI tools without involving IT or procurement. These AI tools quietly slip into the system; this is known as shadow AI. It causes problems like poor visibility, weaker control over data, and the risk of exposing sensitive information.

In industries like healthcare, finance, or legal, using unapproved AI tools can break rules and lead to legal trouble. It’s not just a security risk; teams may buy the same tools twice, leave some unused, and increase software costs.

Let’s see why shadow AI is hard to catch, what problems it causes, and how to spot and control it before it hurts your business.

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TL;DR

• AI tools are becoming common at work, but many employees use them without telling IT. These hidden tools, known as Shadow AI, are often free or bought with personal cards, making them hard to track.
• Using unapproved AI tools can be risky. Employees might share sensitive data like customer information or company files, leading to data leaks or privacy issues.
• Most companies can’t see these tools because they’re installed as browser extensions or accessed through work emails without IT’s approval.
• To fix this, companies should set clear AI rules, check what apps are being used, and watch browser activity or spending data. A tool like CloudEagle.ai makes this easier.
• CloudEagle.ai gives full visibility into all AI and SaaS tools, helps spot unapproved ones, and ensures everything used follows company policies and keeps data safe.

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What are Unauthorized AI Tools?

Unauthorized AI tools are applications or services that employees use at work without formal approval from IT, security, or procurement teams. These tools are not listed in the company’s approved software stack and often operate under the radar, making them part of what’s known as shadow IT.

These tools may include:

• AI writing assistants like ChatGPT, Jasper, and Copy.ai.
• AI design tools like Canva AI, RunwayML, and Adobe Firefly.
• Browser extensions that automate workflows or summarize content.
• Data analysis tools using machine learning or predictive models

These tools can access and store company data, often in third-party environments with unclear data governance.

Employees usually turn to these tools to:

• Save time (e.g., AI email writing or data summarization),
• Solve problems quickly without waiting for formal procurement.

Most of the time, the intention isn’t harmful; they just want to get work done faster. But without oversight, these tools introduce significant risks.

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What Counts as an "Unauthorized AI Tool" in a Saas Environment?

AI tools are becoming a regular part of work life in SaaS-driven companies. Teams use them to speed up tasks, write content, analyze data, and more.

Harmonic Security recently found that over 5,000 AI apps, including customized ChatGPT tools and AI-enhanced SaaS products, had entered workplaces unnoticed, proving just how common shadow AI has become.

But when employees start using these tools without IT, security, or procurement approval, they become unauthorized AI tools.

These are AI tools that haven’t been approved by your company’s IT, security, or procurement teams. For example, if someone in marketing uses Jasper to write content or an analyst uses ChatGPT without telling IT, those tools are considered unauthorized.

Even if the tools are free, paid with a company card, or reimbursed later, they’re still unauthorized if they’re not listed in your SaaS inventory or connected to your identity systems like Okta or Azure AD.

Even browser extensions, like AI writing assistants or meeting summarizers, can be risky. These tools often have access to browser data, which might include customer information, internal messages, or private company data.

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Why Should SaaS Companies Worry About Hidden AI Tools?

As AI becomes more popular, employees often start using artificial intelligence tools like ChatGPT or browser extensions without telling the IT, procurement, or security teams. These hidden tools might seem helpful, but they can cause serious problems if left unchecked.

Data Privacy and Security Risks: Employees might enter sensitive data, like customer info or internal reports, into unapproved AI tools. This creates security risks, as companies can’t control where that data goes or how it’s used. It could get leaked or misused without anyone knowing.

Compliance Violations: SaaS companies must follow rules like GDPR, HIPAA, or SOC 2. If hidden tools process data without proper controls, the company could fail audits or face fines. Plus, they won’t have the full records needed to prove compliance.

Shadow IT and SaaS Sprawl: AI tools are easy to sign up for, so employees often use them without IT’s approval. Over time, this leads to too many tools being used(SaaS sprawl) without oversight, making it harder to manage security and spending.

Wasted Budget: If different teams use different artificial intelligence tools for similar tasks, costs go up. Companies miss out on bulk pricing, and unused tools may keep auto-renewing without anyone noticing, leading to wasted money.

Lack of Control or Governance: Without clear rules, employees might use AI tools for important tasks like writing contracts or answering customers. This can cause mistakes, biased outputs, or messages that don’t match your brand.

Damage to Brand Reputation: If a hidden AI tool leads to a data breach or mistake, it can harm customer trust. For SaaS companies serving large clients, this can mean losing deals or damaging long-term relationships.

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How To Catch AI Tools Used In Your Organization?

As more teams start using AI tools like ChatGPT, design assistants, or automation plugins, employees sometimes try them without telling IT or procurement. This leads to “Shadow AI”, which can be risky for security and compliance.

Here’s a detailed, step-by-step guide to identifying unauthorized artificial intelligence tools before they create compliance or security challenges:

Step 1: Start With an AI Usage Policy

Before you look for unauthorized tools, set clear rules. Define what the best AI apps can be used for, who can approve them, and what types of data are safe to process through AI. This policy acts as a foundation, helping you identify what’s allowed and what isn’t. Make sure all departments understand and follow this policy.

Step 2: Audit Your Existing SaaS Stack

Use a SaaS management platform like CloudEagle.ai to get complete visibility into your current software landscape. It can automatically discover all apps being used across the company, including those not officially purchased. By identifying AI-powered tools in the mix, you’ll know what slipped through the cracks and what needs review.

Step 3: Monitor Network and Endpoint Activity

Work with your IT and security teams to track application usage across your network. Look at firewall logs, browser history, and endpoint monitoring tools to detect traffic going to known AI services like ChatGPT, Midjourney, GrammarlyGO, or browser-based AI assistants. Unusual access patterns may point to unauthorized tools in use.

Step 4: Use Shadow IT Discovery Tools

Shadow IT discovery tools are purpose-built to uncover unsanctioned tools operating within your environment. These platforms integrate with SSO systems, finance tools, and browsers to detect apps that employees have downloaded or subscribed to on their own, giving IT full visibility into “unknown unknowns.”

Step 5: Leverage Browser Extension and Add-On Audits

Many artificial intelligence tools start as harmless-looking browser extensions or add-ons. Over time, they can gain access to sensitive data or browser activity. Regularly audit extensions installed across employee devices and flag those that haven’t been reviewed or approved. You can also block unapproved extensions through browser management policies.

Step 6: Cross-Check With Expense and Procurement Data

Review transactions from finance platforms like NetSuite, Expensify, or credit card statements. Look for charges related to AI tools—subscriptions, trials, or usage-based fees—that haven’t been routed through procurement. This financial data is often where you’ll find the first traces of Shadow AI usage.

Step 7: Continuously Monitor and Enforce AI Tool Policies

Shadow AI keeps showing up as new tools come out. Employees may use these tools without telling IT. CloudEagle.ai helps by spotting these apps, sending alerts, and making sure new tools go through the right approval steps. Everything is tracked in one easy dashboard.

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What Remediation Steps Should Follow Detection?

Once you've identified unauthorized artificial intelligence tools in your organization, the next step is to take swift and structured action to reduce risks and prevent future misuse. Here's what to do next.

Investigate the Tool and Its Usage: Start by identifying who used the tool, what data was shared, and how long it’s been in use. Gather information on access logs, permissions, and data flow to assess the severity of the risk.

Block or Restrict Unauthorized Tools: Use your SaaS management or security platform (like CloudEagle.ai) to block access to the AI tool across the organization. This may include removing browser extensions, revoking app tokens, or blacklisting the tool via firewall or SSO controls.

Conduct a Risk Assessment: Evaluate whether sensitive, regulated, or customer data was exposed. This helps determine if a compliance violation has occurred (e.g., GDPR, HIPAA, SOC 2), and whether you need to report it to legal or regulatory bodies.

Notify Affected Stakeholders: If sensitive data was involved, notify internal teams (legal, compliance, security, leadership) and—if required—external stakeholders or customers. Transparency is key to maintaining trust.

Educate and Train Employees: Use the incident as a learning moment. Reinforce policies around approved tools, data handling, and the risks of shadow IT. Consider launching a training session or internal awareness campaign.

Update Policies and Workflows: Refine your procurement and IT governance policies to include a clear vetting process for artificial intelligence tools. Make sure teams know how to request new tools and what’s not allowed.

Strengthen Monitoring and Prevention: Leverage platforms like CloudEagle.ai to continuously monitor app usage, discover shadow IT, and send alerts when unauthorized AI tools are detected in the future. Set up automated workflows for faster response next time.

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How to Prevent Shadow AI From Recurring?

Preventing Shadow AI, unauthorized or unapproved AI tools, from creeping back into your SaaS environment requires a mix of visibility, governance, and employee awareness. Here's how SaaS companies can stay protected:

Implement SaaS App Discovery Tools: Use platforms like CloudEagle.ai to automatically detect all AI-powered apps being used, even if they weren’t IT-approved. This helps surface shadow tools before they become a problem.

Set Clear AI Usage Policies: Create and enforce policies around AI usage—what’s allowed, what needs approval, and what’s off-limits. Make it easy for teams to understand the risks and get the tools they need through approved channels.

Control Access With SSO and RBAC: Use Single Sign-On (SSO) and Role-Based Access Controls (RBAC) to ensure employees can only access artificial intelligence tools that are vetted and approved. This prevents unauthorized signups with work emails.

Conduct Regular Access Reviews: Review app access quarterly or monthly to identify any new tools, expired licenses, or suspicious access patterns. Flag any unknown AI apps immediately.

Educate Teams Continuously: Make AI governance part of your onboarding and training. Teach teams about responsible AI use, data security risks, and how to request new tools safely.

Monitor and Automate: Set up continuous monitoring with automated alerts for new app signups, browser extension installations, or AI usage outside your tool stack. Platforms like CloudEagle.ai can handle this at scale.

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How CloudEagle.ai Helps in Detecting and Preventing Shadow AI?

As the best AI apps become increasingly accessible, employees often start using them without informing IT, leading to a rise in Shadow AI. These tools, whether free or paid through personal cards, can create serious risks around data privacy, compliance, and cost management.

CloudEagle.ai eliminates these blind spots by giving organizations complete visibility, control, and governance over their SaaS and AI tool stack.

Complete Shadow App Visibility

CloudEagle.ai provides deep visibility into all AI and SaaS tools in your organization, whether officially purchased or quietly adopted by teams without approval. Its AI-powered discovery engine continuously scans login activities, usage patterns, and API data to identify both active and dormant tools, even those outside the procurement process.

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To ensure no app goes unnoticed, CloudEagle combines multiple detection methods:

• SSO Integrations: It tracks all applications authenticated through identity providers like Okta, Azure AD, and Google Workspace. If users access artificial intelligence tools with their corporate credentials, CloudEagle flags them automatically.
• Finance & Expense Integration: By connecting with financial tools like NetSuite, Expensify, and corporate credit cards, CloudEagle detects unauthorized purchases, reimbursements, or subscriptions to AI tools, surfacing hidden or shadow spend.
• Browser Extension Analysis: Many AI tools are installed as browser extensions, like writing assistants or meeting bots. CloudEagle monitors extensions across company devices to flag any AI-based tools that haven’t gone through security or IT review.

This complete visibility helps IT and procurement teams stay in control, reduce risk, and ensure all AI usage aligns with company policy and compliance standards.

Automated AI App Detection and Categorization

CloudEagle.ai goes beyond listing apps—it intelligently identifies which tools are AI-powered and categorizes them based on risk level, function, and usage.

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Whether it’s generative AI platforms like ChatGPT and Jasper, meeting tools with built-in AI summarizers like Fireflies.ai, or AI-powered writing and coding assistants like GrammarlyGO or GitHub Copilot, CloudEagle gives you clarity on how AI is embedded across your SaaS stack. This helps teams understand the real impact of AI, even when it's part of tools they already use.

Eliminates Shadow AI Spend

CloudEagle provides real-time visibility into both approved and unapproved app purchases. It flags duplicate AI subscriptions across departments and identifies when freemium tools quietly switch to paid plans.

By consolidating tool usage, procurement teams can negotiate better pricing, reduce unnecessary spend, and avoid overlapping subscriptions, leading to smarter budgeting and cost savings.

Enforces Policy and Approval Workflows

To prevent unauthorized tool adoption, CloudEagle enables companies to set up automated approval workflows for every new software request. If an employee tries to use an unapproved AI tool, the platform can route the request through IT, security, and procurement.

Teams can compare features, benchmark pricing, and approve or deny requests—all while ensuring the tool meets internal compliance and security policies.

Centralized Dashboard for AI Tool Monitoring

CloudEagle provides a real-time, centralized dashboard that shows all AI and SaaS tools in use across the organization. Teams can view alerts for newly detected or unauthorized tools, monitor license usage trends, get renewal reminders, and track vendor-related risks.

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This visibility simplifies AI governance and integrates seamlessly into your overall software asset management strategy.

Audit-Ready Compliance and Security Control

Hidden artificial intelligence tools can create serious compliance gaps under standards like SOC 2, GDPR, HIPAA, and ISO 27001. CloudEagle.ai makes IT compliance easier by automating access control, onboarding/offboarding, and audit reporting. Everything is managed from one dashboard, so you can stay secure and ready for audits without the stress.

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Conclusion

Shadow AI might not seem like a big issue at first—just a few team members using artificial intelligence tools to speed up their work. But without proper oversight, these tools can create serious problems for your company. From security risks and data leaks to compliance violations and unnecessary costs, hidden AI usage can silently damage your business, especially in fast-moving SaaS environments.

SaaS companies thrive on speed, trust, and innovation. That’s why it's important to take control before Shadow AI becomes a bigger problem. Start by gaining full visibility into the tools your teams are using, setting clear rules, and educating everyone about safe AI usage.

CloudEagle.ai can make this process simple. It helps you discover unauthorized tools, automate approvals, and ensure all AI and SaaS apps follow company policies.

Want to stay ahead of Shadow AI?

Book a demo with CloudEagle.ai today to get full control and peace of mind.

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Frequently Asked Questions

1. What are the tools of AI? 

AI tools include machine learning platforms, NLP tools, robotics, chatbots, and computer vision software.

2. What are the top 5 generative AI tools?

ChatGPT, DALL·E, Midjourney, Claude, and Bard are popular generative AI tools in 2025.

3. What are artificial intelligence tools?

These are software or platforms that simulate human intelligence tasks like learning, reasoning, or problem-solving.

4. What is the most used tool?

ChatGPT is currently one of the most widely used free AI chat tools globally, known for its versatility in answering questions, generating content, and supporting various business and personal use cases.

5. Where are AI tools used?

AI tools are used in healthcare, finance, marketing, education, cybersecurity, and customer support.

6. What are the best AI chat tools?

The best AI chat tools include ChatGPT, Google Gemini, Claude, Jasper Chat, and Microsoft Copilot. These tools help with tasks like answering questions, drafting content, summarizing data, and automating support—all powered by advanced AI.

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