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The 2025 Thales Data Threat Report reveals Indian companies now see GenAI as the biggest cyber threat, overtaking malware and ransomware. With rising concerns around data quality, post-quantum encryption, and AI misuse, firms are rushing to secure their systems—even before fully understanding them.
India flags GenAI as top cybersecurity risk in Thales 2025 report; malware still leads global threats
New Delhi: The 2025 edition of the Thales Data Threat Report, released in partnership with S&P Global Market Intelligence’s 451 Research, reveals a sharp shift in India’s cybersecurity priorities. The report highlights that 70% of Indian organisations view the fast-evolving generative AI (GenAI) ecosystem as the most pressing security threat, surpassing even traditional concerns like ransomware or phishing.
This growing unease stems from the increasing reliance on GenAI platforms for everything from content generation to enterprise automation. Unlike previous years, where data breaches dominated corporate anxiety, this year’s findings point to a new reality: the technology meant to empower is now equally feared for its potential misuse.
2025 Thales Data Threat Report
GenAI rollouts outpacing security readiness
According to the report, Indian enterprises are not waiting for complete security frameworks before integrating GenAI. While 72% have already invested in GenAI-specific security tools, many are adopting the technology faster than they can secure it. Sixteen percent of respondents said these investments were made using newly allocated budgets, underscoring the urgency in response.
“Enterprises are moving at speed, driven by competitive pressure,” said Eric Hanselman, Chief Analyst at S&P Global Market Intelligence. “But many are deploying GenAI solutions without fully understanding their software architectures, particularly as SaaS vendors embed GenAI into their offerings.”
AI concerns now eclipse traditional threats
Though data breach incidents have declined globally, down from 56% in 2021 to 45% in 2025, threats remain significant. In India, 11% of respondents reported a breach within the past year. Malware remains the leading global threat, followed by phishing, which has now overtaken ransomware. Human error has fallen to third position.
India’s concern about GenAI largely stems from three risks:
- 70% cite the unpredictable nature of AI ecosystems
- 66% fear a lack of AI integrity
- 55% question the trustworthiness of AI outputs
This year’s survey clearly shows that as GenAI adoption matures, organisations face mounting pressure to balance innovation with risk management.
Quantum risks and post-quantum readiness
The report also sheds light on rising anxieties around quantum computing. Sixty-eight percent of Indian organisations flagged the potential compromise of encryption by future quantum systems as a serious threat. Meanwhile, 55% are already prototyping post-quantum cryptography (PQC) tools, and nearly half are reassessing their encryption strategies. Only 40% trust their cloud or telecom providers to handle the transition.
“The clock is ticking,” said Todd Moore, Global Vice President of Data Security Products at Thales. “We’re encouraged to see organisations exploring PQC, but many are falling behind deployment timelines due to complexity, legacy systems, and operational inertia.”
Siddharth Shankar brings over a decade of experience in the realm of journalism, film making, and marketing, currently heading the Technology, Science, Gaming, and Automobile sections. He blends his expertise and passion to bring forth cutting-edge stories that resonate with a dynamic audience. Siddharth co-founded BWAutoworld.com for BW Businessworld and was leading Science and Technology domains for TimesNow Digital. For leads Siddharth can be reached on Twitter – @Siddh4rth
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