Corporate concerns predominantly revolve around AI security, prompting increased spending in this area
Businesses are increasingly focusing on integrating Generative AI (GenAI) into their operations, but they are also mindful of the associated security and privacy risks. According to a report released by Thales last month, AI security ranked second on the list of organizations' top security expenses.
The report highlighted the concerns of businesses regarding GenAI, with the top four risks identified being the rapid transformation of the ecosystem, data integrity issues, trust, and confidentiality. Three in five respondents reported buying AI security tools from their security vendors, and roughly half from new vendors. More than two-thirds of respondents reported buying AI security tools from their cloud vendors.
Corporate leaders are showing evolving comfort levels with agentic AI. Andrew Lohn, senior fellow at Georgetown University's Center for Security and Emerging Technology, stated that companies' increased spending on AI security is a sign that they are serious about using AI and not just experimenting with it.
Nick Reese, COO of Frontier Foundry, emphasized the need to stress test AI models to dispel fears and start getting real value from AI investments. The proportion of respondents who said they weren't yet comfortable fully turning tasks over to AI agents increased from 28% to 45%.
To mitigate these risks, businesses are implementing comprehensive governance policies, technical controls, and employee training focused on data protection and compliance. Key approaches include establishing AI governance and approved tool policies, embedding privacy-by-design principles, implementing technical security controls, conducting regular audits, monitoring, and model updates, providing AI-specific security awareness training, and collaborating with privacy and security experts.
These measures help businesses mitigate risks like inadvertent data leakage, data breaches, and regulatory violations while harnessing GenAI's benefits in workflows. Fifty-two percent of business leaders cite risk and compliance as a budgetary priority for GenAI, and 67% prioritize security oversight in their GenAI budgeting decisions, according to KPMG.
Regulatory concerns around GenAI grew from 42% to 55% in KPMG's new Q2 2025 report, and 69% of leaders cited concerns about AI data privacy, a significant increase from the 43% who cited it in Q4 2024. KPMG's new report on the concerns of businesses regarding GenAI was released on Thursday. Sixty-seven percent of business leaders prioritize security oversight in their GenAI budgeting decisions, according to KPMG. In Q2 2025, 55% of respondents prioritized deploying AI agents from "trusted tech providers," down from 63% in Q4 2025.
In conclusion, businesses are taking a proactive approach to address the security and privacy concerns associated with GenAI integration. By implementing robust governance policies, technical controls, and employee training, they are able to mitigate risks and harness the benefits of GenAI in their operations.
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