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Building AI Security Alerts and Monitoring: A Practitioner's Guide

Reco Security Experts
Updated
December 16, 2025
December 16, 2025

"How do I set up alerts for AI tools?" is the wrong question. The better question: How do I build monitoring that catches AI risks I haven't anticipated yet? Most IT teams configure alerts for known AI applications. ChatGPT gets a policy. Copilot gets monitored. Meanwhile, employees connect 15 new AI tools that slip past every rule you wrote. Static alerting misses dynamic AI sprawl.

The gap between "alerts configured" and "AI activity covered" widens every week. Organizations discover an average of 12 AI tools per 100 employees that security never approved. Most AI monitoring fails not from too few alerts, but too many. Teams drown in noise, miss real threats, and eventually ignore the dashboard entirely. Dynamic AI monitoring closes that gap before shadow AI becomes breach risk.

The difference between "we have AI monitoring" and "we'd catch an AI breach" comes down to seven configuration decisions.

Key Takeaways

  • Configure AI-specific posture checks that map to compliance frameworks automatically
  • Build detection policies using MITRE ATT&CK tactics, not just app-specific rules
  • Set exclusions that reduce noise without creating blind spots
  • Monitor AI app scopes and permissions as they change, not just at discovery
  • Use the Events log for forensic investigation when alerts fire

By the end of this guide, you'll have a monitoring stack that catches AI risks your policies never anticipated, not just the ones you wrote rules for.

Step 1: Establish AI Visibility First

Monitoring without visibility is guesswork. Before configuring a single alert, confirm you can see your AI footprint.

Navigate to AI Governance → AI Discovery

This view shows every AI application detected across your environment, including apps that employees connected to without approval.

Filter What It Shows Why It Matters
App Category: Gen AI AI-specific applications only Isolates AI risk from general SaaS
Authorization Status Sanctioned vs. unsanctioned Prioritizes shadow AI monitoring
OAuth Type Social Login vs. OAuth 2.0 Identifies credential exposure patterns
Discovery Source Identity Provider vs. SaaS Apps Shows how AI entered your environment

For each AI app, note the Usage column. High-usage shadow AI tools need immediate attention.

Action: Export this list. Flag apps with "Unsanctioned" status for immediate policy creation.

Step 2: Review AI Posture Score

AI-specific misconfigurations require AI-specific posture monitoring. Generic SaaS checks miss AI permission sprawl.

Navigate to Security Posture → AI Posture Checks

Critical checks to enable:

Check Description Severity Why It Matters
Generative AI services must be blocked when insider risk is elevated HIGH Prevents data exfiltration via AI during risk events
Generative AI access must require compliant devices HIGH Blocks AI access from unmanaged devices
Guest users must be prevented from accessing Copilot CRITICAL Stops external parties from querying your data via AI
Users identified as risky must be blocked from Copilot access HIGH Risk-based access control for AI
Copilot and Azure OpenAI Service should be restricted HIGH Limits AI scope to approved use cases

Click any check to see Impact, Remediation (step-by-step fix), and Related Compliance.

Action: Enable all CRITICAL and HIGH severity AI checks. Set notification preferences for failed scans.

Step 3: Map AI Coverage to MITRE ATT&CK

Alert policies are only as good as their threat coverage. MITRE ATT&CK mapping shows gaps before attackers find them.

Navigate to Threat Detection → MITRE ATT&CK Coverage

Focus on AI-relevant tactics:

Tactic AI Risk Pattern What to Monitor
Collection AI tools harvesting data for training Data from cloud storage, email collection
Exfiltration Sensitive data sent to AI APIs Exfiltration over web service, transfer data to cloud account
Initial Access Phishing via AI-generated content Valid accounts (compromised via AI phishing)
Credential Access AI extracting credentials from prompts Brute force, forge web credentials

Green cells indicate high policy coverage. Blue cells with "0" need attention.

Action: Review techniques with zero coverage. Prioritize Collection and Exfiltration tactics for AI environments.

Step 4: Configure Detection Policies

The Policy Center is where monitoring becomes actionable. Reco provides 400+ pre-built policies.

Navigate to Threat Detection → Policy Center

Key policies for AI monitoring:

Policy What It Detects State
Resistant MFA Users without phishing-resistant authentication ON
Microsoft 365 - User Connected to ChatGPT Direct AI data pipeline ON
GitHub - User Connected GitHub to ChatGPT Source code exfiltration to AI ON
G-Suite - Risky Users Logging into ChatGPT Compromised accounts accessing AI ON
Excessive Download of Categorized Data Bulk data extraction for AI ON

For new deployments, set policies to Preview first. This generates alerts without notifications.

Step 5: Configure Exclusions to Reduce Noise

Alert fatigue kills monitoring programs. Exclusions suppress known-good activity without disabling detection.

Navigate to Threat Detection → Exclusions

Exclusion Type Example When to Use
Parameter value Marketing dept AI usage Approved team AI access
Asset ID Approved ChatGPT integration Sanctioned AI tools
Email/User Security test accounts Testing false positives
IP Address Office network ranges Location-based noise

Warning: Over-exclusion creates blind spots. Review exclusions quarterly. Remove any that haven't matched in 90 days.

Step 6: Monitor Connected AI Apps and Scopes

AI permissions expand silently. Scope monitoring catches this drift before it becomes exposure.

Navigate to AI Governance → AI Agents

High Scopes to Review indicates excessive permissions. Click any app to drill into plugins. Flag high scope counts, recently added plugins, and unknown publishers.

Step 7: Use Events for Investigation

When an alert fires, the Events log provides forensic detail: every user action, API call, and data access.

Navigate to Threat Detection → Events

Filter by Event Time, Instance, and Actor to correlate AI alerts with user behavior patterns.

Conclusion

Building an effective AI monitoring stack means shifting focus from simply writing rules to achieving comprehensive visibility and context. Static alerts for sanctioned applications will inevitably fail against the dynamic threat of shadow AI, shifting scopes, and user-created agents.

The seven steps outlined in this guide provide a framework for proactive defense. By treating AI tools as privileged identities and monitoring their access scopes as they change, security teams can close the gap between policy and reality. A dynamic monitoring platform allows you to suppress noise from known-good activity while simultaneously catching the complex, unanticipated risks that emerge when AI touches sensitive data and identity privileges.

Reco provides the core engine for AI discovery, posture management, and identity-aware threat detection, ensuring you have the necessary context and technical foundation to manage AI risk, rather than simply reacting to alerts.

FAQs

How should a security team get started with AI security alerts without knowing every AI tool in use?

Start by prioritizing AI discovery over alert tuning so you can monitor behavior across known and unknown AI tools.

  • Connect your IdP and core SaaS apps to establish a baseline of AI usage.

  • Identify unsanctioned AI apps and OAuth-based AI connections first.

  • Tag high-usage AI tools for early monitoring focus.

  • Delay alert notifications until visibility is complete.

Learn more in Reco’s overview of Shadow AI discovery.

What is the difference between AI monitoring and AI security monitoring?

AI monitoring tracks availability and usage, while AI security monitoring detects identity, data, and access risks.

  • AI monitoring focuses on uptime and performance.

  • AI security monitoring tracks who accessed what, when, and how.

  • Security monitoring includes unsanctioned tools and shadow AI.

  • Alerts are tied to threat behaviors, not just usage metrics.

For a deeper breakdown, read CISO’s Guide to AI Security.

How does Reco monitor AI permission drift over time?

Reco continuously tracks changes to AI app scopes, plugins, and connected agents.

  • Baseline AI app permissions at first discovery.

  • Detect newly added scopes or plugins automatically.

  • Flag high-risk permissions and unknown publishers.

  • Alert when scope changes intersect with sensitive data.

See how this works in practice with AI Agents for SaaS Security.

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“I’ve looked at other tools in this space and Reco is the best choice based on use cases I had and their dedication to success of our program. I always recommend Reco to my friends and associates, and would recommend it to anyone looking to get their arms around shadow IT and implement effective SaaS security.”
Mike D'Arezzo
Executive Director of Security
“We decided to invest in SaaS Security over other more traditional types of security because of the growth of SaaS that empowers our business to be able to operate the way that it does. It’s just something that can’t be ignored anymore or put off.”
Aaron Ansari
CISO
“With Reco, our posture score has gone from 55% to 67% in 30 days and more improvements to come in 7-10 days. We are having a separate internal session with our ServiceNow admin to address these posture checks.”
Jen Langford
Information Security & Compliance Analyst
“That's a huge differentiator compared to the rest of the players in the space. And because most of the time when you ask for integrations for a solution, they'll say we'll add it to our roadmap, maybe next year. Whereas Reco is very adaptable. They add new integrations quickly, including integrations we've requested.”
Kyle Kurdziolek
Head of Security

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