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As the use of GenAI in enterprise balloons, security and governance risks multiply.
Many organisations find generative AI (GenAI) to be a boon to productivity, and the technology is being deployed at a breakneck pace.
However, as the adoption of GenAI grew by a staggering 890 per cent in 2024, the rapid growth of the technology brings with it considerable risks, particularly in the Asia-Pacific and Japan region.
Based on traffic analysis from 7,051 global enterprise customers, Palo Alto Networks’ The State of Generative AI 2025 report reveals that, on average, organisations now have 66 GenAI applications within their environments, and 10 per cent are considered high risk.
This rapid adoption has seen incidents of GenAI-related data loss more than double, which now accounts for 14 per cent of all data security incidents. The use of unauthorised “shadow AI” is also an issue for IT and security teams, while many high-risk models are prone to jailbreak attacks that could lead to chatbots producing inaccurate or offensive content.
“AI adoption offers transformative opportunities across both commercial and government sectors in the region. But as this report highlights, we are also seeing an expanding attack surface, particularly with the use of high-risk GenAI applications in critical infrastructure sectors,” Tom Scully, director and principal architect for government and critical industries (Asia-Pacific and Japan) at Palo Alto Networks, said in a statement.
“Organisations must balance innovation with strong governance, adopting security architectures that account for AI’s unique risks. From shadow AI and data leakage to the more complex threats posed by agentic AI models. Proactive oversight and adaptive security controls are essential to ensuring that the benefits of AI are fully realised without compromising national security, public trust, or operational integrity.”
The APJ region is going through a particularly robust growth period, with AI investment expected to hit US$110 billion by 2028. Given the region’s diverse regulatory landscape, this brings a raft of challenges of its own and, according to Palo Alto Networks, highlights the need for stronger AI governance frameworks.
You can read the full The State of Generative AI 2025 report here.
David Hollingworth has been writing about technology for over 20 years, and has worked for a range of print and online titles in his career. He is enjoying getting to grips with cyber security, especially when it lets him talk about Lego.
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