For well over a decade, organizations have been grappling with the security, privacy and compliance challenges brought by an increasingly complex digital workplace. The continued rise of decentralized teams, artificial intelligence (AI)-driven tools and the ever-growing stack of “Software as a Service” (SaaS) applications is only exacerbating the problem, and many leaders are still struggling to get the visibility they need.

It’s no longer enough to only consider the threat of outside attacks; in today’s efficiency-driven environment, modern security must also account for real-time application access, Shadow IT and employee behavior. Especially now, it’s mission-critical for business leaders to rethink security through an internal lens.

Related: 50 Things You Need To Know To Optimize Your Company’s Approach to Data Privacy and Cybersecurity

Productivity’s hidden trade-off

Amid the rapid pace of the modern work environment, employees experience constant pressure to do more with less. Still, tighter timelines and fewer resources don’t equal lower expectations from management. When deadlines loom and workloads pile up, workers aren’t waiting for IT approval. They’re finding the tools that they believe will quickly solve problems and drive business themselves.

That’s why SaaS platforms, rising in demand thanks to AI’s rapid adoption, have become the go-to solution for modern teams. According to Gartner, global spending on AI software is projected to reach $297.9 billion by 2027. This surge reflects widespread adoption across all business functions as employees increasingly rely on project management apps, file-sharing services and generative AI assistants that promise speed, simplicity and results. The good news? Many of these tools deliver. But these unsanctioned applications are creeping into your business workflows, becoming privy to your data without ever touching your IT department’s radar.

This unauthorized adoption of third-party tools is becoming a defining feature of the modern workplace. According to Verizon’s 2025 Data Breach Investigations Report, 15% of employees admit to using corporate devices to access generative AI platforms, streamlining workflows and boosting output, but also expanding your organization’s attack surface right under your nose.

In this situation, ignorance is not bliss. Without visibility into what tools your employees are using, you’re not just risking data breaches; you’re operating completely in the dark.

Using visibility to drive security

Security isn’t just about firewalls and antivirus software anymore. It’s also about visibility, and right now, most leaders don’t have it. Verizon notes in its report that, from 2024 to 2025, breaches involving third parties doubled from 15% to 30%. That’s not just a trend; that’s a dire warning.

In a world where productivity often trumps policy, it’s hard to bring the iron fist down on driven employees who are just trying to do more with less (trust me, I understand). Luckily, you don’t have to.

Related: 4 Things Your Employees Are Doing Right Now That Are Compromising Your Network

Rewrite the rules with empowerment in mind

When I think of SaaS sprawl, the first thing that comes to mind is Acceptable Use Policies (AUPs) — the guiding document in your company for all things access. While you might be tempted to lay down the law, rethinking your company’s AUP can’t be guided by fear. Instead, you have to rewrite the rules in a way that provides both security and the much-needed speed to enable productivity.

With this delicate topic in mind, I remember feeling frustrated. I knew the danger SaaS sprawl posed — not just to security, but also to our favorable legal, reputational, and compliance standing — but how was I supposed to make my employees care? In the end, I knew my company had to customize our AUP to meet the needs of our workforce.

To craft effective policies, it’s important to:

• Acknowledge good intentions: It’s understandable that most employees are using SaaS tools to do their jobs better, which is more admirable than malicious. Let that idea shine in your AUP to foster a sense of trust and transparency.

• Avoid scare tactics: Instead of cracking down on unfettered SaaS usage, make it clear that you’re open to two-way dialogue and constructive compromises. Lay out a clearly defined process that enables access to innovative applications while also making sure that security controls are followed.

• Redirection over restriction: Outright bans on productivity tools like AI are unrealistic. Not only will your employees find workarounds, but they’ll remember your cruel response when they were just trying to be better workers. If a tool or application needs to be off-limits, suggest a more secure alternative whenever possible.

• Make it a team effort: Today, security isn’t just IT’s job. Employees thrive when they are made to feel important; now is their moment of glory. Trust your employees and use your AUP to empower them to be part of the solution.

• Call out common pitfalls: If you know of a risky tool that is frequently used, it’s better to name it than hope workers read between the lines. Don’t let popularity create confusion, which can lead to costly mistakes.

There’s a tool for that

While updating your AUP is a step in the right direction, you might be asking: “How do I make sure these new policies are working?” That’s why SaaS monitoring platforms exist to give you the visibility you need.

While features vary depending on which platform you use, these tools offer real-time insights into employee app usage, flag suspicious activity and help enforce access controls. SaaS monitoring platforms also reveal which tools your employees actually rely on daily, helping you streamline subscriptions and refine policies.

Related: The Role of Leadership in Creating a Cybersecurity Culture — How to Foster Awareness and Accountability Across the Organization

Security and innovation can coexist

While SaaS and AI may look like enemies, what business leaders really need to tackle is secrecy around the use of these tools. The real risk lies in what you don’t see.

As leaders, we need to help our employees stop thinking of security as an impediment to innovation and instead see it as a potential foundation for it. By increasing visibility across the organization, embracing greater transparency, rewriting the rules and investing in the right tools, we can protect what matters most without slowing down what’s next.