GenAI Cyber Risks Drive Shift in Security Spending

According to Thales’ 2025 Data Threat Report, nearly three-quarters of organizations are now channeling funds—either from new budgets or redirected from existing resources—into AI-specific security tools, Infosecurity Magazine reports. As GenAI becomes more embedded in business processes, security tailored for AI has become the second-highest spending priority, following cloud security. The rapid evolution of GenAI infrastructure, SaaS platforms, and autonomous agents is reshaping how enterprises view risk, particularly in areas of system integrity and trust.

Organizations are sourcing AI security capabilities from a mix of established vendors, cloud providers, and emerging startups, reflecting a diverse approach to managing evolving threats. The pace of GenAI adoption is outstripping the ability of many companies to fully assess architectural risks, which adds complexity to an already shifting security environment. Around 70% of surveyed IT and security professionals flagged the dynamic GenAI ecosystem as a top concern, underscoring a growing recognition that traditional security approaches may no longer be sufficient.

Alongside GenAI-specific risks, the report also highlights broader cyber trends. While the overall percentage of enterprises reporting data breaches has declined slightly—from 49% in 2024 to 45% this year—there remains a clear connection between compliance and breach frequency. Enterprises that failed compliance audits were far more likely to report past breaches than those that met requirements. The most common attack types remain malware, phishing, and ransomware, with many of these exploiting weak authentication protocols.

To reduce account compromise risks, many organizations are now moving beyond passwords. Nearly 60% have implemented biometric authentication, while 47% have adopted passwordless approaches like passkeys. These trends reflect a broader effort to modernize defenses as threat actors increasingly target identity systems. As enterprises continue integrating GenAI, the challenge will be balancing speed and innovation with the foundational need for security and trust.