Product Review: How Reco Discovers Shadow AI in SaaS

Shadow AI Detection and Risks in SaaS Environments

Definition and Risks of Shadow AI

Shadow AI refers to the unauthorized use of AI tools and copilots within organizations, posing significant security and compliance risks. This includes employees using AI-powered tools like ChatGPT, Agentic AI, or other generative AI models without the knowledge or approval of IT or security teams13.

Key Risks Associated with Shadow AI

1. Data Leaks and Misinformation:

   • Employees using unauthorized AI tools can inadvertently expose sensitive corporate data, such as proprietary source code or meeting notes, to external entities. This can lead to data leaks and the dissemination of misinformation, damaging organizational credibility and trust13.

2. Unmonitored Integrations and APIs:

   • Shadow AI tools often integrate with approved business applications, making them harder to detect than traditional shadow IT. These integrations can expand the attack surface, increasing the risk of exploitation and lateral movement within the network due to weak configurations like excessive permissions and lack of multi-factor authentication (MFA)13.

3. Rogue Cloud Instances and Unsecured Models:

   • Employees may set up cloud instances for AI experiments or productivity hacks without IT oversight. These instances can process sensitive data, exposing it to external entities, and if not properly secured, can be exploited by attackers3.

4. AI Embedded in Consumer Devices:

   • AI capabilities built into consumer devices, such as smartphones, can become gateways for data leaks if not managed carefully. Employees using these features for work-related tasks might unintentionally upload sensitive information to third-party servers3.

5. Unauthorized AI in Customer Interactions:

   • AI-powered chatbots used without authorization can share sensitive customer or company data with unsecured AI models, leading to reputational damage, compliance violations, and security breaches3.

Reco AI Security Solutions

Reco is a SaaS security solution designed to detect and manage shadow AI within organizations.

How Reco Works

• AI-Based Graph Technology: Reco uses AI-based graph technology to discover and catalog shadow AI tools and apps.
• Inventory and Monitoring: It inventories all applications running in the environment associated with business emails, tracks user authentication, and produces activity logs to understand behavior. This helps in identifying suspicious activities like excessive downloads, external file sharing, or permission changes1.

Key Capabilities of Reco

• Application Discovery: Reco identifies which SaaS apps are in use, which are utilizing AI assistants and copilots, and the app-to-app connections within the environment.
• Vendor Risk Score: It provides a Vendor Risk Score to help security teams prioritize riskier apps.
• Posture Management and Compliance: Reco identifies misconfigurations, such as over-permissioned users and weak authentication mechanisms, and offers instructions on how to fix these risks.
• Identities and Access Governance: It unifies identities across SaaS applications, enabling centralized management of permissions and roles.
• Threat Detection and Response: Reco delivers real-time alerts for unusual activities and integrates with SIEM or SOAR systems for efficient risk remediation1.

Limitations of Reco

• Prevention of Data Input: Reco cannot prevent users from entering sensitive data into unauthorized AI tools.
• Blocking Shadow AI Tools: It does not block or disable shadow AI tools or integrations.
• Restricting User Behavior: Reco cannot enforce policies or prevent users from accessing unapproved tools; it only detects and alerts on activity.
• Modifying Permissions: It cannot change user permissions or revoke access to shadow AI tools due to its read-only access1.

Additional Solutions and Considerations

Automated Application Discovery Tools

Other solutions, such as those provided by Trelica (now acquired by 1Password), offer automated application discovery tools to identify unmanaged SaaS apps, streamline user provisioning, and enforce security policies. These tools help in bringing unmanaged apps into full compliance under IT and security management5.

Regulatory Implications

The EU AI Act, often referred to as the 'GDPR of AI,' highlights the need for stringent regulations and oversight to manage the risks associated with AI tools. Noncompliance with such regulations can result in significant fines and reputational damage3.

In summary, shadow AI poses a significant threat to organizational security and compliance, and solutions like Reco are crucial in detecting and managing these risks. However, these solutions have limitations, and a comprehensive approach involving multiple tools and stringent governance is necessary to mitigate the risks associated with shadow AI.