Stamford, Conn. – The increased adoption of Generative AI (GenAI) is said to be outpacing security and governance measures, leading to heightened risk with respect to data localization due to its centralized computing requirements. According to Gartner, by 2027, improper application of GenAI will be responsible for more than 40% of the data breaches on AI-related matters.
“Unintended cross-border data transfers often occur due to insufficient oversight, particularly when GenAI is integrated in existing products without clear descriptions or announcement,” said Joerg Fritsch, VP analyst at Gartner.
“Organizations are noticing changes in the content produced by employees using GenAI tools. While these tools can be used for approved business applications, they pose security risks if sensitive prompts are sent to AI tools and APIs hosted in unknown locations.”
Gartner warns that the lack of global AI governance standards is driving operational inefficiencies. Enterprises are being forced to develop region-specific strategies, limiting AI scalability. “The complexity of managing data flows and maintaining quality due to localized AI policies can lead to operational inefficiencies,” said Fritsch. “Organizations must invest in advanced AI governance and security to protect sensitive data and ensure compliance. This need will likely drive growth in AI security, governance, and compliance services markets, as well as technology solutions that enhance transparency and control over AI processes.”
Gartner said, in 2027, AI governance will be required under the sovereign AI regulations across the globe. “Organizations that cannot integrate required governance models and controls may find themselves at a competitive disadvantage, especially those lacking the resources to quickly extend existing data governance frameworks,” said Fritsch.
To address the AI security risks, Gartner outlines measures that include the enhancement of data governance, setting up AI oversight committees, and investing in encryption and anonymization technologies. The firm also recommends that trust, risk, and security management (TRiSM) products be integrated to check misinformation and enhance AI decisions.
The new Gartner findings will be discussed at the upcoming Security & Risk Management Summits from March to September 2025 across various major cities worldwide.
Source: https://www.gartner.com/en/newsroom/press-releases/2025-02-17-gartner-predicts-forty-percent-of-ai-data-breaches-will-arise-from-cross-border-genai-misuse-by-2027
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