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71% of APAC firms see AI as top data security risk: report

Thales’ 2026 Data Threat Report, based on research by S&P Global 451 Research, found 71% of Asia Pacific organisations name AI their top data security risk as AI gains broad automated access to enterprise data.

Only 35% of Asia Pacific firms know where all their data resides, 40% can fully classify it, and 47% of sensitive cloud data remains unencrypted.

Credential theft leads attacks on cloud management infrastructure in Asia Pacific at 69%, compared to 67% globally, while Hong Kong reports lower credential theft at 44% but higher third-party and API risks at 67%.

Nearly 60% reported deepfake-driven incidents and 50% reputational harm from AI-generated misinformation, with India higher at 65% and 55% respectively.

Just 31% of Asia Pacific firms dedicate specific budgets to AI security, while 51% still rely on existing security programmes built for human users.

The report urges organisations to improve data visibility, identity governance, and encryption to prevent AI becoming an insider threat.

🔗 Source: Thales

🧠 Food for thought

Implications, context, and why it matters.

The struggle is global and budgets get squeezed

  • Asia Pacific faces the same data tracking and funding headaches seen worldwide.
  • Across the world, 34% of organizations know where all their data sits, while 30% set aside a dedicated AI security budget. These figures track closely with Asia Pacific results 1.
  • In Singapore, 54% of respondents said AI security spend comes out of existing security budgets, which forces tradeoffs for security leaders 2.
  • In the same market, 69% said locking down cloud infrastructure is harder than protecting on-premises systems (company-run hardware and software in their own facilities). The average Singapore enterprise also runs 77 Software as a Service (SaaS) applications 2.

AI’s insider threat paradox helps drive a $60.6 billion market

  • These gaps open a large sales opportunity, with the global AI in cybersecurity market forecast to rise from $22.4 billion in 2023 to $60.6 billion by 2028 3.
  • In Asia Pacific, one research provider puts the AI security market at $3 billion, naming Huawei and Palo Alto Networks among the leading vendors 4.
  • A tension remains. AI gets broad automated access to enterprise data, which makes it feel like a new insider threat. Yet one brake on adoption is that AI security tools are not widely used to spot insider threats 3.
  • That pattern suggests firms add powerful internal agents before security tooling catches up with the older, human-driven risk.

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