Data Privacy Takes Priority Over Security Concerns Amid AI Adoption, 59% of regional organizations report moderate to high AI adoption

Gulf Business Machines (GBM) today unveiled the findings of the 12th edition of its annual security report, titled ‘Embracing Opportunities and Mitigating Risks in the Age of AI’. This year’s study explores the growing impact of artificial intelligence (AI) on cybersecurity and data privacy across the Middle East, as AI adoption surges.

Polling 500 security leaders and professionals across various sectors in the UAE, Oman, Bahrain, and Kuwait, the report reveals that 59% of organizations have embraced AI at a moderate to high level this year. This widespread adoption signals a significant shift as enterprises leverage AI to drive technological advancement, diversify economies, and reduce reliance on oil.

Amid rapid AI innovation, particularly through initiatives like the UAE’s National Strategy for Artificial Intelligence 2031 and Saudi Vision 2030, the region is positioning itself as an AI powerhouse. However, the report highlights that this shift brings heightened concerns over data privacy and regulatory compliance, now taking precedence over traditional security and ethical issues.

Key Findings:

• Data Privacy: For 31% of respondents, data privacy tops the list of concerns, while 27% emphasize regulatory and compliance challenges.
• Ethical and Security Concerns: Ethical issues, such as AI bias, are front of mind for 25% of businesses, while security vulnerabilities rank as a critical issue for 17%.
• AI Leadership Gaps: Despite the rising prominence of AI, 45% of organizations report they lack a Chief AI Officer, indicating a leadership gap in overseeing AI initiatives.

AI's Transformational Power and Challenges 

The transformative power of AI in enhancing threat detection, automating security processes, and improving incident response is clear, yet it also introduces AI-specific vulnerabilities. Nearly half of the surveyed organizations struggle to incorporate robust data privacy protections into AI systems, and 35% report difficulties in navigating global data protection regulations.

Furthermore, the arrival of generative AI (GenAI) is reshaping industries. The report highlights its significant impact, with 37% of organizations citing increased operational efficiency, and 22% pointing to enhanced creativity and innovation as its key benefits.

Strategies for Strengthening Cybersecurity 

To address these emerging challenges, the report outlines several strategic recommendations. Key among them is the establishment of shared threat intelligence platforms and fostering cross-sector cybersecurity cooperation. The importance of adhering to international standards and advancing collaborative research and development is also underscored.

Hiring and upskilling talent to mitigate AI's unique risks is critical. Chief Information Security Officers (CISOs), Chief Technology Officers (CTOs), and Chief Privacy Officers (CPOs) must play pivotal roles in aligning security strategies, ensuring data protection, and navigating complex regulations.

Bassam Rached, General Manager – Technology at GBM, commented, “The Middle East is at the forefront of AI-driven transformation, backed by visionary leadership and ambitious national strategies. Our latest report highlights AI's vast potential in accelerating innovation and economic growth, while also addressing the critical cybersecurity and privacy risks it brings. Tackling these challenges requires a collaborative approach, involving key stakeholders from both the public and private sectors.”

He added, “By fostering strategic partnerships and investing in public-private collaborations, the region can build a secure digital future, leveraging AI responsibly and ethically.”