AI adoption brings cyber risks for UAE firms

By Vriti Gothi

Artificial intelligence governance and insider threats have emerged as the leading cybersecurity concerns for chief information security officers (CISOs) in the United Arab Emirates, according to  CISO report. The study, which surveyed 1,600 CISOs across 16 countries, including 100 in the UAE, paints a picture of rising cyber risks, mounting pressure on security leaders, and growing challenges in balancing innovation with risk.

The research highlights insider-driven data loss as a critical vulnerability in the UAE, with every CISO surveyed linking at least some form of data leakage to departing employees. Despite the widespread adoption of data loss prevention technologies, 42% of CISOs admitted that their data remains inadequately protected. Human behaviour continues to undermine resilience, with 57% identifying employees as their greatest cybersecurity risk, even though most believe their workforce understands best practices.

Artificial intelligence has emerged as both a key opportunity and a source of concern. 60% of CISOs in the UAE consider enabling safe use of generative AI tools to be a strategic priority over the next two years, yet 55% remain worried about potential customer data exposure through public GenAI platforms. Reflecting a shift in approach, most organisations have moved from outright restriction to governance, with 59% implementing usage guidelines and 58% exploring AI-powered defences. However, enthusiasm has declined from last year’s peak of 89%, signalling more caution as adoption accelerates.

The survey also revealed a growing disconnect between confidence and capability. While 69% of CISOs in the UAE believe they are at risk of experiencing a material cyberattack in the next year, more than half admit they are not fully prepared to respond. This sense of vulnerability is underscored by the fact that 77% of CISOs in the country reported material data loss in the past 12 months, a steep rise from 45% in 2024. Under pressure, more than half of CISOs indicated they would consider paying a ransom to restore systems or prevent sensitive information from being leaked.

Boardroom alignment is also slipping, falling from 90% last year to just 57% in 2025. Despite this, Proofpoint notes that cyber risk is becoming a strategic business concern, with boards increasingly focused on the potential impact of breaches on company valuation.

Patrick Joyce, Global Resident CISO at Proofpoint, said, “While many security leaders express optimism about their organisation’s cyber posture, the reality tells a different story rising data loss, readiness gaps, and persistent human risk continue to undermine resilience. As GenAI adoption accelerates both opportunity and threat, the role of the CISO has never been more pivotal or more pressured.”

For FinTech companies in the UAE, the report reinforces the importance of strengthening data governance, embedding AI guardrails, and tackling insider risk as critical elements of digital trust. With regulatory expectations rising and customer confidence central to growth, financial technology players must ensure that security leadership is aligned with innovation to build a resilient digital ecosystem.