Updated on September 30, 2026
The fact that software is now ubiquitous in the workplace is nothing new. Even before the pandemic pushed work remote, employees were already collaborating, communicating, planning, and executing more and more in the digital sphere.
The shift to the digital workplace has brought new opportunities—managers, for example, can leverage analytics to get unprecedented insights into how their employees are working and how best to support them. But it’s also brought new challenges.
How SaaS sprawl expands to AI tools
SaaS sprawl often starts with teams choosing tools to solve immediate problems. Over time, those individual decisions can leave the business paying for applications that overlap or no longer serve a clear purpose.
AI tool sprawl follows the same pattern. For example, different teams might buy separate AI assistants for writing, research, or meeting summaries, even when an existing subscription offers similar capabilities. Overlap alone doesn’t make a tool wasteful: IT needs to compare adoption, employee needs, and costs before deciding what to consolidate.
The risks of an out of control portfolio
There’s no question that a bloated portfolio of internal-facing apps is a needless financial drain on a company. For one, many of these apps go underused, if not totally unused, by the majority of employees they’re meant to help. And when it comes to the apps employees do utilize, it’s not uncommon for some to serve the same purpose and provide equivalent functionality as others already in the tech stack. These duplicative apps are a sign of SaaS sprawl: the company may be paying for overlapping capabilities without understanding whether employees need both tools.
But SaaS sprawl also hurts companies’ finances in less direct ways, especially when it comes to productivity. If different departments or teams are leveraging different apps for similar reasons, they’ll have less visibility into what their colleagues are working on and will be less able to collaborate and communicate effectively. They may also get confused or frustrated when it’s unclear which app to use for which workflow or process. This can lead to growth in support ticket requests and help queries that can quickly overwhelm IT. A confusing app landscape also worsens the employee experience, increasing the risk that individuals and teams will churn.
Shadow IT and shadow AI add visibility gaps
When employees use software without IT’s approval or oversight, it creates shadow IT. The same issue applies to AI tools: shadow AI is AI use outside the organization’s approved processes.
These tools can leave IT without a clear view of who is using them or whether they meet company requirements. Employees may also be unsure which tools are approved for handling work information. Discovering unapproved applications is a starting point; IT still needs to review them and give employees clear guidance on approved alternatives.
How to reduce SaaS sprawl with usage data
Start with an inventory of the applications employees use, including AI tools and apps IT hasn’t approved. Pendo Command Center brings portfolio-level visibility into app usage, adoption, and license utilization. With App Discovery enabled, IT can surface employee-used web applications and investigate potential overlap or underuse.
Use that evidence to decide what needs attention. Low adoption may point to a training gap rather than a tool worth retiring. Overlapping applications may serve different teams or requirements. Compare usage with costs and employee needs before choosing what to keep, consolidate, or retire.
Once you’ve made a decision, use Pendo’s in-app guides to help employees adopt approved tools and navigate the change. Revisit usage and utilization over time to assess whether the change reduced waste and improved adoption.
Explore Pendo Command Center to understand your software portfolio, or take the Command Center tour to see it in action.
