55% of COOs Use GenAI to Improve Data Security

As cyber threats become more sophisticated, chief operating officers (COOs) are turning to generative AI (GenAI) to enhance data security.

According to a PYMNTS Intelligence December 2024 The AI MonitorEdge Report, “COOs Leverage GenAI to Reduce Data Security Losses,” COOs are optimistic about the long-term benefits of integrating artificial intelligence (AI) into their security frameworks. The report examines how this shift, driven by the need to address rising cyberattacks and fraud, represents a key change in how organizations manage risks.

GenAI’s Pivotal Role in Data Security

Cybersecurity is a critical concern for large organizations as cyberattacks become more advanced and frequent. COOs are using AI-driven systems to address these threats. According to the report, 55% of COOs say their companies have already implemented AI-based automated cybersecurity management systems — a threefold increase from earlier in the year. These systems leverage GenAI to detect fraudulent activities, identify anomalies and provide real-time threat assessments, making them more effective than traditional reactive security measures.

The shift from reactive to proactive security strategies is a key aspect of this transformation. By integrating AI into security frameworks, COOs are improving threat detection and enhancing their organizations’ overall resilience. GenAI is viewed as a vital tool for minimizing the risk of security breaches and fraud, and it is becoming an essential component of strategic risk management in large organizations.

COOs Bullish on GenAI’s ROI

A key factor driving the adoption of GenAI in data security is the anticipated return on investment (ROI). COOs are optimistic about the long-term financial benefits of AI, particularly in the realm of cybersecurity. Consider COOs expect substantial ROI from GenAI technologies, with many anticipating positive returns by 2030. On average, organizations that have already deployed GenAI for high-impact tasks, such as data security, expect to see a positive ROI in 5.6 years.

Additionally, companies already realizing significant ROI are optimistic about faster AI integration. COOs with very high ROI projections expect full GenAI deployment within 5.7 years, ahead of the general timeline of 6.9 years for those still in the early stages of AI adoption. This confidence reflects the recognition that GenAI will play a central role in managing immediate challenges and long-term business growth.

Read more: 90% of CFOs Report ‘Very Positive’ ROI From GenAI in Just 9 Months

How GenAI Can Help Drive Revenue Growth

The integration of GenAI into data security systems is improving protection against cyber threats and driving revenue growth. By automating complex security functions, companies can reduce revenue losses resulting from breaches and fraud. According to the report, COOs using GenAI for cybersecurity management estimate saving 5.9% of their annual revenue over the past year. This figure exceeds the 5.4% revenue savings reported by all firms surveyed.

Notably, firms with high ROI expectations from GenAI see even greater savings, with an estimated 7.7% of revenue preserved. Additionally, organizations that rely on GenAI for high-impact tasks, such as fraud detection and security breach identification, report saving 6.5% of their annual revenue. By preventing financial losses from security threats, GenAI is emerging as a powerful tool for driving revenue growth and improving operational efficiency.

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