In 2025, GenAI has moved from experimental to enterprise-critical — transforming how organizations innovate, operate, and protect data. We’ve entered a new age, one where technology isn’t just evolving—it’s transforming at warp speed. At the heart of this revolution lies generative AI (GenAI), a force rapidly reshaping organizations across every conceivable sector. While this transformative power offers unprecedented productivity gains, it also introduces a new era of complex risks.
Our recent Palo Alto Networks report, “The State of Generative AI in 2025,” sheds light on major trends observed across over seven thousand Palo Alto Networks customers. The findings are clear: GenAI has shifted from a mere novelty to an essential utility, and its rapid adoption comes with security implications that every CISO, CIO and IT security professional must understand. Here are some key takeaways from the report.
From Hype to Utility — GenAI’s Mainstream Moment
GenAI traffic experienced an explosive surge of over 890% in 2024. This surge reflects growing enterprise reliance on mature AI models and measurable productivity gains.
This growth also indicates a definitive shift, positioning GenAI as a critical utility rather than a passing trend. The notable surge in October may suggest organizations bringing more GenAI initiatives to production. It’s no surprise that GenAI apps are being leveraged at a record pace. As with many consumer applications, they are also being introduced into enterprise workspaces – with or without the approval or oversight of IT departments.
The Data Dilemma — Shadow AI and Surging DLP Incidents
The rise of GenAI is also correlated with an increase in data security incidents. Data loss prevention (DLP) incidents related to GenAI more than doubled in early 2025. The average monthly number of GenAI-related data security incidents increased 2.5 times, now accounting for 14% of all data security incidents across SaaS traffic according to the report.
Organizations are grappling with the unfettered proliferation of GenAI applications within their environments. On average, organizations have about 66 GenAI applications in use. More importantly, 10% of these were classified as high risk. The widespread use of unsanctioned GenAI tools, coupled with a lack of clear AI policies and the pressure for rapid AI adoption, can expose organizations to new risks.
The observations from the report underscore a new era of risks for enterprises. “Shadow AI,” the unauthorized use of AI tools by employees without IT knowledge or approval, means businesses are at heightened risk of exposing sensitive data, violating regulations and losing control of intellectual property.
The Governance Gap — Regulation and Business Risk
Compounding the risk is a fast-evolving regulatory landscape, where noncompliance with emerging AI and data laws can result in severe penalties. Governments and regulatory bodies worldwide are working to catch up with AI’s rapid advancement, which can create uncertainty for businesses. Some laws demand extreme caution in the handling and sharing of personal data with GenAI applications.
The uncomfortable truth is that for all its productivity gains, there are many growing concerns – including data loss from sensitive trade secrets or source code shared on unapproved AI platforms. There’s also the risk in using unvetted GenAI tools that are vulnerable to poisoned outputs, phishing scams, and malware disguised as legitimate AI responses.
Securing the Future — Your AI Security Game Plan
To navigate this complex landscape, organizations must adopt a proactive, multilayered approach to GenAI governance to effectively mitigate AI risks.
- Understand GenAI usage and control what is allowed. Implement conditional access management to limit access to GenAI platforms, apps, and plugins based on users and/or groups, location, application risk, compliant devices, and legitimate business rationale.
- Guard sensitive data from unauthorized access and leakage. Enable real-time content inspection with centralized policy enforcement across the infrastructure and within data security workflows to help prevent unauthorized access and sensitive data leakage.
- Defend against modern AI-based cyberthreats. Implement a zero trust security framework to identify and block highly sophisticated, evasive, and stealthy malware and threats within GenAI responses.
Innovate Fast, Secure Faster
The explosive growth of GenAI has fundamentally altered the digital landscape for enterprise organizations. While GenAI unlocks innovation and accelerates competition, the proliferation of unauthorized AI tools is exposing organizations to greater risk of data leakage, compliance failures and security challenges. It is imperative not to let the speed of innovation outpace your safeguards. To harness the full potential of GenAI while mitigating its risks, prioritizing strong data controls, access management and ongoing employee training is crucial for laying the foundation for secure GenAI adoption.
This is exactly why we developed AI Access Security. Our technology enables organizations to safely access and use third-party GenAI apps by reducing data and security risks. AI Access Security directly addresses the critical need for robust security in the face of rapid AI adoption by providing real-time visibility into GenAI adoption and usage, governing access, offering advanced threat protection, and preventing sensitive, proprietary data from being exposed to public GenAI apps. AI Access Security empowers businesses to capitalize on the immense benefits of GenAI without compromising on security.
The future of AI in the enterprise is unfolding now. Don’t get left behind, or worse, let your organization be exposed to security risks. Dive into “The State of Generative AI in 2025” report to understand the current landscape, navigate the benefits and risks of GenAI, and learn how to build a robust security strategy that keeps pace with AI innovation. Equip yourself with the knowledge to champion secure GenAI adoption and insights that position you for success in the AI revolution.