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Key Points

A new report finds that 90% of Indian companies struggle to scale AI due to security and privacy concerns. Phishing remains the top-rated threat, while AI-powered cyberattacks add complexity. Enterprises are adopting zero-trust models and cloud security to counter risks. The survey highlights how security has shifted from IT departments to boardroom priorities.

Key Points: 90% Indian Firms Cite Security Risks as AI Scaling Hurdle

  • 77% CIOs rank phishing as severe security threat
  • AI-driven model poisoning emerges as new risk
  • Cloud-native security gains traction in regulated sectors
  • Data quality issues also hinder AI adoption
2 min read

Nine in ten Indian enterprises consider security & privacy risks stall AI scaling

New survey reveals 9 in 10 Indian enterprises face AI adoption delays due to data security and privacy concerns, with phishing as top threat.

"AI is changing the cybersecurity game on both sides — attackers are using it to innovate threats, and defenders are using it to automate detection and response. — R. Giridhar, 9.9 Group"

New Delhi, Aug 16

Nine out of ten Indian enterprises cite data security and privacy risks as their most significant obstacle to scaling AI and analytics, a report said on Saturday.

"Phishing remains a top concern, with 77 per cent of chief information officers (CIOs) rating it as highly or moderately severe," according to the '2025 State of Enterprise Technology Survey' by CIO and Leader and BMNXT.

Identity-based attacks and ransomware continue to pressure enterprises, while AI-generated threats such as model poisoning and data leakage are emerging as new frontiers of risk, the report stated.

“AI is changing the cybersecurity game on both sides — attackers are using it to innovate threats, and defenders are using it to automate detection and response. The challenge for enterprises is to stay ahead by embedding security into AI initiatives from day one,” said R. Giridhar, Head of Research, 9.9 Group.

Cloud-native security controls, zero-trust architectures, and privacy automation are becoming core capabilities, particularly in regulated industries.

At the same time, AI-powered detection is gaining ground, enabling faster anomaly detection, behavioural baselining, and automated incident response, the report said.

According to the report, SOC modernisation and the adoption of Privileged Access Management (PAM) are increasing to address the challenges of complex hybrid IT environments.

Deepak Kumar, Founder & Chief Analyst, BMNXT and Consulting Research Partner, CIO and Leader, said, “The numbers make it clear — security and privacy are no longer just IT concerns; they are board-level priorities. The next phase of AI adoption will hinge on trust. Organisations that fail to address security as a foundational element risk stalling their digital transformation.”

Other key barriers to scaling AI cited by respondents include data availability and quality issues (90 per cent), choosing the right technologies (88.3 per cent), and change management challenges (86.7 per cent).

“CIOs today are walking a tightrope — they need to scale AI to drive competitiveness, but they cannot afford to compromise on trust. Building privacy-by-design, governance, and literacy into AI strategies will be critical to balancing speed with security,” Jatinder Singh, Executive Editor, CIO&Leader, added.

The Survey captures insights from over 350 CIOs and technology leaders across India’s top enterprises, providing a comprehensive view of priorities, challenges, and opportunities in AI, cloud, application development, and cybersecurity.

- IANS

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Reader Comments

S
Shreya B
As someone working in IT, I see companies rushing to implement AI without proper security protocols daily. The 90% figure doesn't surprise me at all. We need more awareness and training at all levels.
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Aditya G
Interesting report but I wish they'd included more about solutions. Zero-trust architecture sounds promising for Indian enterprises dealing with hybrid work models. Any techies here who've implemented it successfully?
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Priya S
The part about AI-generated threats is scary 😨 Indian startups especially need to be careful - we can't afford data breaches that might scare away investors. Maybe government should offer more support for cybersecurity?
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Karthik V
While security is important, this report feels a bit alarmist. Indian companies have always adapted to new tech challenges. With proper planning and the right talent, we can overcome these hurdles like we did with cloud adoption.
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Nisha Z
The data quality issue (90%) is actually more concerning than security IMO. Garbage in, garbage out - no AI will work properly without clean data. Indian companies need to fix their data governance first!
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Deepak U
Good to see Indian enterprises being cautious. After the Aadhaar data leak concerns, we can't be too careful with sensitive information. Maybe

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