Are Security & Privacy Risks Preventing AI Growth in Indian Enterprises?
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Synopsis
Discover how nine out of ten Indian enterprises are grappling with data security and privacy risks that hinder their AI scaling efforts. This report highlights the essential need for organizations to prioritize security as they navigate the future of AI.
Key Takeaways
- Data Security: Key barrier to scaling AI.
- Phishing Risks: A major concern for CIOs.
- Emerging Threats: AI-generated risks like model poisoning.
- Security Integration: Essential for AI initiatives.
- Technological Capabilities: Cloud-native and zero-trust becoming core.
New Delhi, Aug 16 (NationPress) Nine out of ten Indian enterprises identify data security and privacy risks as the primary barrier to expanding AI and analytics, according to a report published on Saturday.
Phishing is highlighted as a major concern, with 77 percent of chief information officers (CIOs) categorizing it as highly or moderately severe, as noted in the '2025 State of Enterprise Technology Survey' by CIO and Leader and BMNXT.
Enterprise operations continue to face challenges from identity-based attacks and ransomware, while AI-generated threats, including model poisoning and data leakage, represent emerging risks, the report elaborates.
“AI is transforming the cybersecurity landscape for both attackers and defenders. Attackers leverage AI to enhance their threats, while defenders use it for automated detection and response. Enterprises must integrate security into their AI initiatives from the outset to stay ahead,” stated R. Giridhar, Head of Research, 9.9 Group.
Core capabilities like cloud-native security controls, zero-trust architectures, and privacy automation are becoming essential, particularly within regulated sectors.
Simultaneously, AI-driven detection technologies are emerging, allowing for quicker anomaly detection, behavioral baselining, and automated incident response, according to the report.
In response to the complexities of hybrid IT environments, the modernization of Security Operations Centers (SOC) and the implementation of Privileged Access Management (PAM) are on the rise.
Deepak Kumar, Founder & Chief Analyst, BMNXT and Consulting Research Partner, CIO and Leader, remarked, “The data is clear — security and privacy have transcended IT concerns and are now board-level priorities. The future of AI adoption will be rooted in trust. Organizations that neglect security as a foundational aspect risk hindering their digital transformation efforts.”
Respondents also identified other significant challenges to scaling AI, including data availability and quality issues (90 percent), selecting appropriate technologies (88.3 percent), and managing change (86.7 percent).
“Today’s CIOs are balancing on a tightrope — they need to scale AI to enhance competitiveness yet cannot compromise on trust. Integrating privacy-by-design, governance, and literacy into AI strategies will be crucial for achieving a balance between speed and security,” added Jatinder Singh, Executive Editor, CIO&Leader.
The Survey captures insights from over 350 CIOs and technology leaders across India's leading enterprises, providing a thorough overview of priorities, challenges, and opportunities in AI, cloud, application development, and cybersecurity.
Point of View
It is clear that as India embraces AI, the focus on security must be paramount. With threats evolving, enterprises must prioritize cybersecurity to foster trust and ensure smooth digital transformation. The insights from this survey underscore the critical need for a robust security framework that aligns with AI initiatives.
NationPress
19/08/2025
Frequently Asked Questions
What is the main barrier to AI scaling in Indian enterprises?
The primary barrier identified is data security and privacy risks, with nine out of ten enterprises citing it as a significant obstacle.
What percentage of CIOs are concerned about phishing?
Seventy-seven percent of CIOs rate phishing as a highly or moderately severe concern.
What emerging threats are mentioned in the report?
Emerging threats include AI-generated risks such as model poisoning and data leakage.
Why is security essential for AI initiatives?
Integrating security at the outset of AI initiatives is crucial for enterprises to stay ahead of evolving threats.
Which technologies are becoming core capabilities for security?
Cloud-native security controls, zero-trust architectures, and privacy automation are becoming essential capabilities in regulated industries.
