- 20% of Indian organizations identify AI vulnerabilities as a top cybersecurity threat, the highest level across APAC.
- 36% of enterprises in India report employees using external AI tools such as ChatGPT and DeepSeek for work.
- 85% of APAC organizations are discussing, developing, or piloting internal AI solutions powered by LLMs.
- Cybersecurity investment is rising, with 41% of global enterprises increasing spending due to AI adoption.
- Successful AI adoption will depend on balancing innovation with governance, security, and digital trust.
India Leads the Region in AI Vulnerability Concerns, While the Rise of Shadow AI Pushes Organizations to Strengthen Governance, Security, and Digital Trust
Artificial Intelligence has moved beyond experimentation and entered the mainstream enterprise agenda. Across Asia Pacific (APAC), organizations are rapidly embracing AI to improve productivity, enhance decision-making, and gain competitive advantage. However, this transformation is also creating a new generation of cybersecurity challenges, forcing businesses to rethink how they protect data, systems, and digital operations.
According to Kaspersky’s latest research, AI adoption is now directly influencing cybersecurity spending, with 41% of enterprises globally reporting that the rise of AI has prompted increased investments in information security. The findings reveal a region that is enthusiastic about AI’s potential but increasingly aware of the risks that accompany widespread deployment.
For India in particular, the results underscore a growing urgency around AI governance and cyber resilience. The country recorded the highest level of concern about AI-related vulnerabilities among surveyed APAC markets, highlighting the dual challenge of accelerating innovation while securing increasingly complex digital environments.
India Leads APAC in AI Security Concerns
Kaspersky’s survey of 1,800 IT and cybersecurity decision-makers across 18 countries found that 20% of organizations in India consider AI vulnerabilities among their top cybersecurity threats, the highest percentage across the region.
While traditional threats continue to dominate security concerns, AI-related risks are quickly emerging as a boardroom issue. Across APAC, software vulnerability exploits remain the leading concern at 20%, followed closely by phishing attacks at 19%. However, AI vulnerabilities are increasingly joining this list as enterprises deploy generative AI models, automation platforms, and AI-powered business applications.
India’s elevated concern level reflects the country’s aggressive adoption of digital technologies and AI initiatives. As businesses race to integrate AI into customer engagement, analytics, software development, and operational workflows, concerns around model vulnerabilities, prompt manipulation, data leakage, and unauthorized access are becoming more pronounced.
“Businesses that integrate cybersecurity into their AI strategies from the beginning will be better positioned to innovate with confidence as AI adoption matures.”
– Adrian Hia, Managing Director, Asia Pacific, Kaspersky
Malaysia followed India with 15% of organizations identifying AI vulnerabilities as a priority concern, while Thailand and Vietnam reported 13% each. Indonesia recorded 10%, while China reported 7%.
These findings suggest that cybersecurity teams are beginning to recognize AI not merely as a productivity tool but as a potential attack surface that requires dedicated protection strategies.
The Growing Threat of Shadow AI
While organizations often focus on external cyber threats, one of the most significant AI-related risks is originating from within the enterprise itself.
Kaspersky’s research highlights the rapid rise of “Shadow AI”, a phenomenon in which employees use third-party AI tools such as ChatGPT, DeepSeek, and other generative AI platforms without formal organizational oversight.
Across APAC, 30% of organizations reported employee usage of external AI tools as a major risk factor. Once again, India topped the list, with 36% of organizations reporting employee use of third-party AI platforms for work purposes.
Malaysia followed closely at 35%, while Vietnam reported 33%, China 31%, Indonesia 24%, and Thailand 18%.
The challenge for businesses is that employees often turn to external AI tools to increase productivity, accelerate content creation, summarize information, write code, or automate repetitive tasks. However, these seemingly harmless activities can inadvertently expose sensitive corporate information, intellectual property, customer data, or confidential business strategies.
For cybersecurity leaders, Shadow AI represents a governance challenge that extends beyond technology controls. Organizations must establish clear policies, educate employees, and implement monitoring mechanisms to ensure AI adoption occurs within approved security frameworks.
Balancing Innovation and Control
Interestingly, the research indicates that most organizations are attempting to strike a balance rather than imposing outright bans on AI tools.
Approximately 60% of organizations across APAC permit the use of third-party AI tools under specific restrictions. Common controls include prohibiting employees from uploading confidential documents, customer information, or proprietary business data. Many organizations have also introduced training programs and guidelines to encourage responsible AI usage.
India mirrors this regional trend, with a majority of businesses allowing controlled use of external AI applications while simultaneously trying to manage the associated risks.
This approach reflects a broader shift in enterprise thinking. Rather than resisting AI adoption, organizations increasingly recognize that AI has become an essential part of modern business operations. The focus has therefore shifted from prevention to governance, ensuring innovation can proceed without compromising security.
Internal AI Development Accelerates
Despite mounting concerns around security and governance, organizations across APAC continue to invest aggressively in AI initiatives.
According to the survey, 85% of businesses are currently discussing, developing, or piloting internal AI solutions powered by large language models (LLMs). An additional 10% have already integrated AI technologies into their day-to-day operations.
These figures demonstrate that AI adoption has reached a critical inflection point. Organizations are no longer asking whether AI should be deployed. Instead, they are determining where, how, and at what scale AI can create measurable business value.
Companies already operating internal AI systems cite several primary benefits, including improved decision-making, increased operational efficiency, and reduced human error.
These outcomes are particularly attractive in competitive industries where speed, accuracy, and workforce productivity directly influence market performance.
The increasing preference for internal AI deployments also reflects growing awareness of data sovereignty and security concerns. By building or customizing AI solutions within controlled environments, organizations can gain many of the productivity benefits of artificial intelligence while reducing exposure to external risks.
Cybersecurity Becomes a Critical Enabler
According to Vladislav Tushkanov, Group Manager at Kaspersky AI Technology Research Centre, the rise of AI adoption must be accompanied by equally sophisticated security practices.
As organizations automate processes and introduce AI-driven workflows, new vulnerabilities emerge alongside the benefits. AI systems can become targets for manipulation, poisoning attacks, unauthorized access, and misuse of sensitive data.
This reality is driving a fundamental shift in cybersecurity strategy. Traditional perimeter-based security models are increasingly insufficient in environments where AI systems analyze, generate, and process significant volumes of information.
Modern cybersecurity programs must now address AI-specific risks while simultaneously leveraging AI-powered security tools capable of detecting threats faster, automating response actions, and supporting overwhelmed security teams.
The result is a growing convergence of AI and cybersecurity, where organizations increasingly rely on artificial intelligence to help defend against threats created by artificial intelligence itself.
From Technology Adoption to Trust Building
One of the most significant insights from the research is the evolving nature of digital transformation.
According to Adrian Hia, Managing Director for Asia Pacific at Kaspersky, organizations are moving beyond debating whether AI should have a place in the enterprise. The real challenge now lies in deploying AI responsibly.
This shift marks a new phase in enterprise technology adoption. Success is no longer measured simply by implementing the latest digital tools. Instead, it depends on an organization’s ability to establish governance frameworks, manage risks, ensure compliance, and build trust among employees, customers, and stakeholders.
As AI becomes embedded into critical business processes, governance is emerging as a strategic differentiator. Businesses that introduce security, privacy, and risk management considerations early in their AI journey are likely to experience fewer disruptions and achieve more sustainable outcomes.
The Road Ahead
The findings from Kaspersky’s research paint a clear picture of the future. AI adoption across APAC is accelerating rapidly, and organizations view artificial intelligence as a key driver of competitiveness, innovation, and operational excellence.
However, the same technology creating new opportunities is also introducing new vulnerabilities. India’s position as the APAC country most concerned about AI vulnerabilities highlights a growing awareness that AI success cannot be separated from cybersecurity preparedness.
The rise of Shadow AI, expanding internal AI development programs, and increasing information security investments all point toward a common conclusion: organizations must treat cybersecurity as a foundational component of their AI strategy rather than an afterthought.
As AI adoption matures across the region, the winners will not necessarily be those that deploy AI the fastest. Instead, they will be the organizations that combine innovation with governance, speed with security, and digital transformation with trust.
In the age of AI, cybersecurity is no longer just a defense mechanism. It has become a critical enabler of intelligent, scalable, and sustainable business growth.