Report: AI ecosystem is a top security risk for two-thirds of UAE companies

A recent report shows that two-thirds (66%) of organizations in the UAE view the rapid development of artificial intelligence (AI), especially generative AI, as their most significant security concern.

Many UAE organizations are already implementing GenAI, with 11% of respondents saying it’s actively changing their operations; however, 58% struggle to trust AI due to its rapid development. 

As GenAI becomes more deeply integrated into operations, organizations are shifting from experimentation to large-scale deployment—often faster than their security measures can keep up. Efforts to enhance data protection are not keeping pace with AI’s rapid advancements, leaving many vulnerable to new risks even as they pursue innovation.

As concerns increase, security for generative AI is quickly becoming a top investment focus worldwide, second only to cloud security. In the UAE, 64% of organizations report investing in AI-specific security tools, either through new budgets or by reallocating existing resources.

The data comes from Thales’s recently released 2025 Data Threat Report. The annual study, conducted by S&P Global Market Intelligence 451 Research, covering more than 3,100 IT and security professionals across 20 countries and 15 industries, highlighted how technologies such as AI and quantum computing are reshaping data security priorities in the region.

The report also reveals growing concern among UAE organizations regarding quantum security threats.

Nearly two-thirds (64%) of respondents highlighted the vulnerabilities in key distribution, where advancements in quantum computing could jeopardize the secure exchange of encryption keys. Almost 62% warned about future encryption breaches, as quantum computers might someday crack current algorithms and reveal data once deemed safe.

Another 55% highlighted the “harvest now, decrypt later” (HNDL) risk, in which encrypted data intercepted today could be decrypted later. In response, half of the organizations are strengthening digital sovereignty through customer, regional, or global privacy mandates. Meanwhile, more than a third (35%) believe that robust encryption and key management practices can provide sufficient protection.