Are Security and Privacy Risks Hindering AI Growth in Indian Enterprises?
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Synopsis
A recent report reveals that 90% of Indian enterprises face significant hurdles in AI scaling due to security and privacy concerns. As the AI landscape evolves, organizations must prioritize trust and security to drive their digital transformation forward.
Key Takeaways
- 90% of Indian enterprises cite security and privacy as key obstacles to AI scaling.
- Phishing is a major concern for 77% of CIOs.
- AI-generated threats are emerging, including model poisoning.
- Security must be integrated into AI strategies from the start.
- Modernization of security operations is essential for complex IT environments.
New Delhi, Aug 16 (NationPress) A staggering 90% of Indian companies identify data security and privacy challenges as the primary barrier to expanding AI and analytics capabilities, according to a report released on Saturday.
Phishing remains a prominent issue, with 77% of chief information officers (CIOs) describing it as either highly or moderately severe, as highlighted in the ‘2025 State of Enterprise Technology Survey’ conducted by CIO and Leader in conjunction with BMNXT.
Organizations continue to grapple with identity-based assaults and ransomware, while AI-generated threats, including model poisoning and data leakage, present emerging risks, the report noted.
“AI is transforming the cybersecurity landscape from both perspectives—malicious actors are leveraging it to devise new threats, while defenders harness it for automated detection and response. The challenge for businesses is to proactively integrate security into AI initiatives from the outset,” stated R. Giridhar, Head of Research at 9.9 Group.
Cloud-native security frameworks, zero-trust models, and privacy automation are increasingly becoming essential, especially within regulated sectors.
Moreover, AI-driven detection is becoming prevalent, facilitating quicker anomaly detection, behavioral baselining, and automated incident management, according to the findings.
The report also indicated that the modernization of Security Operations Centers (SOC) and the implementation of Privileged Access Management (PAM) are on the rise to tackle the complexities of hybrid IT infrastructures.
Deepak Kumar, Founder & Chief Analyst at BMNXT and Consulting Research Partner at CIO and Leader, remarked, “The data is unequivocal—security and privacy have transcended IT concerns to become board-level priorities. The next wave of AI adoption will depend on building trust. Organizations that neglect security as a core element risk hindering their digital transformation efforts.”
Respondents also highlighted additional significant challenges in scaling AI, such as data availability and quality (90%), selecting appropriate technologies (88.3%), and managing change effectively (86.7%).
“CIOs are treading a fine line—they must expand AI to enhance competitiveness without sacrificing trust. Incorporating privacy-by-design, governance, and literacy into AI strategies will be vital for balancing agility with security,” added Jatinder Singh, Executive Editor at CIO&Leader.
The survey gathered insights from over 350 CIOs and technology leaders across India's leading enterprises, offering a detailed perspective on the priorities, challenges, and opportunities related to AI, cloud computing, application development, and cybersecurity.
Point of View
It is evident that the interplay between AI advancement and cybersecurity is critical. Indian enterprises must prioritize integrating robust security protocols early in their AI strategies to ensure sustainable growth and trust.
NationPress
19/08/2025
Frequently Asked Questions
What percentage of Indian enterprises see security as a barrier to AI?
According to a recent report, 90% of Indian enterprises identify data security and privacy risks as significant obstacles to scaling AI.
What are the emerging threats in cybersecurity related to AI?
Emerging threats include AI-generated risks such as model poisoning and data leakage, alongside traditional issues like phishing and ransomware.
How can organizations address these security concerns?
Organizations should embed security into AI initiatives from the beginning, utilizing cloud-native security frameworks and zero-trust architectures.
