Gen AI and cybersecurity are top investment priorities for executives: PwC report
Nov 26, 2024
Synopsis
MSMEs have to focus on cybersecurity as a vital component of their planning and operations because the risks do not discriminate based on the size of businesses, says the report.
Indian executives rank cybersecurity as their top risk mitigation priority (61% of the respondents), followed by digital and technology risks (60%), inflation (48%) and environmental risks (30%) for the next 12 months, according to PwC’s 2025 Digital Trust Insights – India Highlights.
The report revealed that 93% of respondents anticipate an increase in their cybersecurity budgets next year, with 17% planning to raise their budgets by 15% or more — an increase of 1% from last year. It also speaks about the need for MSMEs to focus on cybersecurity as a vital component of their planning and operations.
Sivarama Krishnan, Partner and Leader, Partner & Leader, Risk Consulting, PwC India & Leader of APAC Cyber Security & Privacy, PwC, says over the past few years, cybersecurity has become a strategic imperative for organisations of all sizes. “The digital age presents numerous opportunities, and the risks associated with it do not discriminate based on the size of businesses. Medium and small enterprises must see cybersecurity as a fundamental aspect to their survival and success,” he says.
According to the report, cloud-related threats remain the foremost worry as 55% of Indian executives call it their most worrying cyber risk, marking a 3% increase from the previous year. However, 50% of security leaders and chief financial officers (CFOs) feel least prepared to address these threats in the coming year.
Elaborating further on advanced technological defences, the report highlights that Gen AI is at the helm of cyber investment priorities, with 87% of organisations boosting their investments over the past 12 months. “Additionally, 86% of organisations have increased their spending on AI governance as part of their risk management strategies. Furthermore, 80% of Indian companies are highly confident in their ability to comply with AI regulations,” it says.
The report also says that despite all efforts, the impact of cyber incidents remains substantial. The percentage of security leaders in India reporting a data breach with costs exceeding $20 million has decreased by 3% from last year to 8%. Additionally, 44% of leaders have experienced a data breach costing over $500,000 in the past three years. More than 33% of leaders indicate that most of their serious data breaches within the last three years have incurred costs of no less than $1 million.
Krishnan points out that only one-fifth of organisations are adopting thorough risk quantification methodologies. “This disparity highlights an overlooked opportunity that must now be addressed. Developing a dependable cyber risk quantification system is crucial for informed decision-making and prioritising strategic investments,” he adds.
[The Economic Times]
