Torii Unveils 2025 SaaS Benchmark Report, Exposing the True Cost of Shadow AI & SaaS Sprawl

Torii Unveils 2025 SaaS Benchmark Report, Exposing the True Cost of Shadow AI & SaaS Sprawl

Media Contact:
Lauren Whitehead
Director, Product Marketing
Torii
lauren.whitehead@toriihq.com

Torii, the leader in SaaS Management, has unveiled its highly anticipated 2025 SaaS Benchmark Annual Report, exposing the staggering financial and security threats posed by Shadow AI and unchecked SaaS sprawl.

Based on exclusive first-party data from hundreds of organizations, the report highlights how businesses are struggling with a dramatic rise in Shadow IT—now dominated by AI-powered tools.

Most businesses today recognize the threat of Shadow AI—unsanctioned AI use outside IT governance—but few realize how pervasive it already is. Because these tools often rely on proprietary company data, they pose significant security and compliance risks, and since they often use a consumption-based pricing model, they can undermine cost management. Importantly, while some instances of Shadow AI are new apps, many are AI-driven features within already approved software. Yet despite these differences, in many ways, Shadow AI is simply the next chapter in the same story of software governance.

Since its founding in 2017, Torii has tackled SaaS sprawl with a visibility-first approach to SaaS Management. Today’s AI surge is another form of ungoverned software that can be secured and optimized if it is first discovered. Torii remains the market leader, ensuring IT teams stay ahead of risks and inefficiencies before they escalate.

Want to see how Shadow AI is silently driving up your costs? Read the full 2025 SaaS Benchmark Report here.

The Cost of Unchecked SaaS Sprawl: Key Findings

The surge in AI-driven tools is reshaping software ecosystems, adding new urgency to long-standing SaaS sprawl challenges. Shadow AI now accounts for the majority of newly unmanaged applications, further complicating visibility, cost tracking, and compliance efforts.

Torii's SaaS Benchmark Report quantifies the true scale of Shadow AI's impact, revealing just how pervasive and costly the issue has already become:

Organizations manage an average of 668 applications—over half (54%) classified as Shadow IT – As software portfolios continue to expand, Shadow AI has fueled much of the 21% increase in total app counts across five company sizes since Q1 2024, intensifying visibility and cost challenges for IT teams.

AI-driven tools make up the majority of unmanaged applications– The top four most frequently unmanaged apps in companies are 100% AI-driven tools, with four of the next five also AI-dependent. This unchecked AI adoption outside IT oversight makes cost tracking nearly impossible due to unpredictable consumption-based pricing models.

61% of SaaS applications are inactive, yet companies continue paying for them – Many of these applications have had no active users in the last 30 days, yet they still carry active, paid licenses. At the same time, both average and median SaaS contract values have increased year-over-year, making renewals a crucial opportunity for cost containment and right-sizing entitlements.

“The extent of Shadow AI and underutilized applications that would have gone unnoticed without Torii is staggering,” said Uri Haramati, CEO and Co-Founder of Torii. “Organizations don’t realize how much budget waste and compliance risk is hidden in their software stacks. This report highlights how Torii is giving IT leaders the visibility, insights, and automation they need to stay ahead—before costs and risk spiral out of control.”

Torii Customers Take Control of Shadow AI & SaaS Sprawl

Torii customers rely on the platform’s industry-leading, multi-source discovery and intelligent automations to gain unmatched visibility into their software ecosystem. By exposing hidden software, optimizing spend, and enforcing compliance, Torii ensures IT teams stay ahead of risks and inefficiencies before they escalate:

Daryl Dore, Director of IT at Higher Logic, shares: “My first budget season I almost quit my job because it was so painful. With Torii, I only have to spend about four hours on it. Now, Finance relies on me to correct their budget because my data is more accurate.”

Joshua James, IT Operations Expert at Sennder, explains: “Torii gives us a central source of truth for all things SaaS. Now, we have control over our apps and expenses. I fully recommend Torii for its great SaaS detection, time-saving workflows, and comprehensive cost savings.”

Raveh Kahaner, Head of Global Procurement at HiBob, shares: “After deploying Torii I was taken aback by the huge gap between the SaaS apps we were managing, how many we believed existed, and the reality. We knew we were struggling to account for all of our SaaS apps, but had no idea there were hundreds of them left unaccounted for. Torii gave us that visibility.”

Torii: The Must-Have Platform for Tackling Shadow AI

Torii’s latest research highlights the critical insights that often go unnoticed until it’s too late. Without the right tools, organizations struggle to uncover Shadow AI, hidden software costs, and compliance blind spots. Torii’s discovery capabilities, cost-saving insights, and automation empower IT teams to take a proactive approach, shifting from reactive firefighting to strategic technology advisors. By revealing the true state of software environments, Torii helps businesses close compliance gaps, optimize spending, and drive operational efficiency with ease.

To explore the full insights, access the 2025 SaaS Benchmark Annual Report here.

For more information on how Torii is reshaping SaaS management, visit ToriiHQ.com.