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GenAI is revolutionizing how developers create new apps and services. It’s making app development more efficient, providing developers with the tools to make it easier to spin up applications, tweak pre-built models, and create something functional in record time. However, this means applications can be developed without support from IT and may be bypassing the security and governance frameworks in place, making the battle against Shadow IT more difficult.
On the one hand GenAI is revolutionizing how business apps are built and utilized, accelerating time to market and potential profitability. On the other hand, organizations are faced with an increased attack surface created by programs that often bypass traditional IT oversight. In this new era, shadow IT isn’t just a nuisance—it’s a potential security crisis waiting to happen.
When Shadow IT Meets AI-Enhanced Cyberattacks
Eighty-three percent of leaders in a recent Kong report say AI investments are fueling new products and services. It’s easy to see why. Need to automate a workflow or create a chatbot? A few keystrokes, and it’s done. The barriers to building have all but disappeared, unleashing a wave of innovation that’s impossible to ignore.
But here’s the catch: this creative boom has a dark side. Some of these new tools rely on shadow APIs—untracked, unmanaged gateways operating in the wild west of IT infrastructure. And cybercriminals? They’re more than happy to exploit these blind spots, turning innovation into a security nightmare.
As AI evolves, so do the tools attackers use to exploit it. The rise of AI tools has only made it easier for bad actors to automate attacks, uncover hidden APIs, and launch targeted breaches. While developers build with GenAI, hackers use the same technology to scale their attacks.
Kong’s research paints a stark picture: 74% of IT leaders are deeply concerned about AI-enhanced attacks. But it’s not just bad actors misusing AI. Even well-intentioned usage can lead to data exposure. Take Samsung, for instance—when employees fed sensitive source code into ChatGPT, it became publicly accessible, creating a security and compliance nightmare.
The Trouble with Shadow IT and APIs
Governing shadow IT has always been tricky, but the rise of GenAI takes it to another level. With employees and teams creating applications faster than ever, keeping track of what’s being built, and how it connects to your systems, can feel like an impossible task. Shadow APIs, in particular, are a major blind spot. They’re often spun up without proper security measures, leaving them wide open to exploitation.
The compliance risks are just as serious. Regulatory frameworks and federal laws demand strict data protection and transparency. Shadow APIs can slip under the radar, exposing sensitive data without organizations even realizing it. This not only puts businesses at risk of breaches, but also hefty fines for non-compliance.
Millions of APIs exist out in the wild which makes them an attractive target to cybercriminals. Over half of the organizations surveyed experienced an API security incident last year, and 20% faced remediation costs exceeding $500,000. In fact, Gartner estimates that API breaches leak ten times more data than your average cyberattack.
For organizations trying to stay ahead, visibility is everything. Without tools to discover and govern shadow IT, businesses risk falling out of step with compliance requirements and leaving themselves vulnerable to attacks.
Quieting the Chaos: Why Infrastructure Matters
So, how do you manage the perfect storm of GenAI, APIs and Shadow IT without stifling innovation? It all starts with a solid infrastructure. Organizations need tools that shine a light on every API—whether it’s part of an official project or something a team developed on the side.
That’s where solutions like AI Gateways come into play. Think of an AI Gateway as the control tower for your API ecosystem. It’s a centralized hub that not only monitors and manages all your APIs but also keeps tabs on the traffic generated by AI-powered tools. With built-in AI smarts, these platforms can flag suspicious activity, uncover rogue APIs, and stop threats in their tracks.
Even better, AI Gateways help businesses scale without introducing unnecessary risk. They make it easy to integrate AI-driven apps securely, ensuring that innovation doesn’t come at the cost of security.
Turning Risks into Opportunities
Generative AI isn’t going anywhere—it’s already reshaping how we work, create, and collaborate. But to harness its potential, businesses need to tackle the challenges head-on. Here’s how to strike the right balance:
1. Spot Shadow APIs: Use advanced network monitoring tools to identify hidden APIs and understand their impact on your ecosystem.
2. Build Smarter Policies: Develop AI-specific security measures, like auditing large language models (LLMs) and training employees to use AI responsibly.
3. Invest in Resilience: Adopt infrastructure solutions like AI gateways to manage API sprawl and boost security.
As our report points out, 84% of IT leaders believe AI and LLMs will make API security even more complex in the next few years. Getting ahead of these challenges now is critical to staying competitive—and secure.
The Bottom Line
GenAI is a game-changer, but it’s also rewriting the rules of Shadow IT. With every new app or API, comes a new potential vulnerability. The good news? By combining innovative AI tools with a strong governance strategy, businesses can transform these risks into opportunities.
The key is finding the right balance: embrace the creativity GenAI enables, but don’t lose sight of the security and scalability needed to keep it all under control. After all, innovation is only as powerful as the foundation it’s built on.
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