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Gartner: 60% of CISOs are piloting GenAI, but only 20% see results

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The global threatscape is becoming dominated by all forms of weaponized LLMs, AI, and conversational agents, all aimed at launching lethal attacks that cripple companies and entire supply chains in minutes.

Nation‑state actors and organized eCrime groups now use artificial intelligence, including generative AI (GenAI), to automate reconnaissance, weaponize access, and strike faster than most defenses can respond. To keep pace, enterprises and the CISOs leading them are turning to GenAI as a defensive multiplier.

 CISOs are remaining optimistic

Gartner’s latest research quantifies that adoption is accelerating, but measurable results remain elusive. Approximately 60 % of organizations are piloting or planning GenAI cybersecurity initiatives. Only 20% of security leaders say these programs have delivered beneficial outcomes so far. These figures are from the research firm’s recent research note, What GenAI Use Cases Are Organizations Pursuing Within Cybersecurity? published earlier this month. Forrester predicts that the first agentic AI breach will happen in 2026.

Yet, despite early hurdles, cybersecurity leaders remain optimistic. Nearly every CISO I’ve spoken with sees GenAI as pivotal for transforming threat detection, proactive hunting, rapid incident response, and extracting actionable insights from terabytes of telemetry data streaming from endpoints and events. They recognize GenAI as crucial to decoding adversary tradecraft, particularly as identity-based threats and weaponized machine-learning attacks accelerate, reshaping the global threatscape in real time.

Key takeaways

  • Code Analysis leads the pack. GenAI‑assisted code analysis is the most mature use case: 22% of enterprises use it today, and another 30% are piloting it. It addresses a persistent gap, as 69% of software‑engineering leaders cite insecure code remediation as a critical skills bottleneck.
  • GenAI shows potential in helping SOC teams spot vulnerabilities faster. Currently, 21% of organizations actively leverage GenAI to enhance vulnerability detection and remediation, with another 26% piloting these capabilities. Adoption is driven by GenAI’s ability to automate vulnerability identification and prioritize remediation workflows, addressing longstanding security bottlenecks and resource constraints. Despite intense interest, widespread implementation remains challenged by integration complexity and skepticism about AI-generated accuracy, emphasizing the need for incremental deployment aligned with existing cybersecurity metrics.
  • CISOs Shift from Ambition to Execution Gartner finds that the leaders gaining traction are those adopting “bite‑sized” implementations or use cases that fit into current processes, deliver quantifiable ROI, and build trust among analysts and engineers.

CISOs are dealing with a threatscape moving at machine speed

Given how lethal machine-driven attacks are becoming, exacerbated by the growing sophistication of weaponized AI, going on the offensive with GenAI is a choice more CISOs are considering.

  • Nearly every cybersecurity team wants to have a Gen AI pilot either complete or in process to see how it integrates with their planned arsenal for 2026. Most CISOs want some form of AI in their arsenals going into the new year, as many expect the intensity, ingenuity, and lethal impact of automated attacks will reach new levels next year. One told me confidentially she fully expects machine-on-machine breach attempts to grow six times over in 2026 as her financial services firm handles highly speculative assets, including cryptocurrency ETFs and investment products.
  • Breakout speed hits critical mass. CrowdStrike’s 2025 Global Threat Report reveals the alarming acceleration of attacks: the fastest observed eCrime intrusion took just 51 seconds to escalate from initial access to lateral movement, virtually eliminating defenders’ window to respond.
  • Living-off-the-Land tactics dominate and often evade legacy cyberdefense systems: Malware-free intrusions surged significantly, now comprising 81% of interactive attacks in 2025. This trend is corroborated by findings from Mandiant and IBM X-Force, indicating adversaries are bypassing traditional signature-based controls by exploiting legitimate tools native to the enterprise environment.
  • Nation-state activity reaching new record levels as weaponized tradecraft gains stealth and sophistication: CrowdStrike, Mandiant have documented triple-digit increases in operations linked to China, Iran, and North Korea. These attacks predominantly target telecommunications and critical infrastructure, reflecting geopolitical tensions and nation-states’ strategic prioritization of cyber-espionage.
  • Global threat consensus is clear and compelling: ENISA’s Threat Landscape 2025 report aligns precisely with intelligence from CrowdStrike, Mandiant, and IBM X-Force, verifying that nation-state actors now leverage AI-driven automation to execute attacks faster than enterprises can detect, let alone defend.

CrowdStrike Founder and CEO George Kurtz underscored the urgency clearly in a recent CNBC interview on October 23rd, stating, “Well, this is something that we’ve really been focused on for the last number of years is being able to protect agentic AI. And if you think about agentic AI, it has the capabilities to interact with data. It has the capabilities to interact with Compute. It has identities, non-human identities, but it operates at superhuman speed. So all of the challenges that we’ve seen over the many years of humans getting themselves into trouble is only going to be exasperated by agentic AI, and we need security like CrowdStrike is delivering to protect it”.

Practical guidance from CISOs adding GenAI to their arsenals

Gartner’s latest research, combined with interviews and discussions with CISOs, security leaders, and SOC leaders who are piloting and in some cases using GenAI-based platforms today, offers this advice:

  • Go deep on integration on pilots to see how strong the GenAI solution is as a contributor to your security tech stack: CISOs and SOC leaders tell me that this is the most reliable test of whether a GenAI platform or app will make the cut and get to production on their tech stack. Solid APIs that have been battle-tested by vendors who have a strong API management history have the inside track.
  • Outcome-driven use cases are a must-have:At its core, cybersecurity is a business decision. And in a digital-first world, protecting your brand is essential. Any Gen AI pilot needs to contribute to a use case that makes a solid contribution to solidifying a business’s ability to compete.
  • Start with time-tested, established metrics: Getting to a level of trust in GenAI is core to seeing if it is ready to progress from pilot into production. Evaluating GenAI effectiveness using established KPIs, including mean time to detect (MTTD) and mean time to respond (MTTR), at table stakes. CISOs and others running pilots caution about creating entirely new metrics just for GenAI. It obfuscates the total business impact of the technology.
  • Parallel human trust and governance: Gartner emphasizes investing in employee enablement and robust governance frameworks like NIST’s AI Risk Management Framework to foster confidence in GenAI adoption. Human oversight remains a vital layer of control. Human-in-the-middle is essential for any workflow.

Bottom Line

Nation-state adversaries measure their innovation in how lethal their attacks are, how stealth their tradecraft is, and how easily they can evade legacy security techniques. It’s a full cyberwar just a few steps away from a full-on kinetic war. Research from CrowdStrike, IBM, Mandiant, and many other companies shows machine-to-machine attacks orchestrated with Gen AI are accelerating, so much so that Forrester predicts an imminent AI breach next year. GenAI’s ability to identify new threats and stop them makes the technology work a look.

Top ten cybersecurity startups to watch in 2025 according to $3.21B in investor bets

Top Ten Cybersecurity Startups to Watch in 2025 According to $3.21B in Investor Bets

While the industry still debates whether AI will transform cybersecurity, investors have already made up their minds.

Based on an analysis of the latest Crunchbase data compiled recently that spans January 2024 to October 2025, ten standout startups captured $1.41 billion in new funding, signaling that machine-speed defense against AI-driven threats is no longer optional; it’s an operational reality. Together, these ten startups have raised $3.21 billion, which represents one of the heaviest capital concentrations in cybersecurity startups to date.

Investors are gravitating to cybersecurity startups that solve complex problems

CrowdStrike’s Falcon 2025 event, held earlier this year in Las Vegas, showcased a series of new agentic AI developments that, taken together, reflect how cross-platform and cross-competitor collaboration aimed at shutting down increasingly complex weaponized AI threats leads to faster innovation. VentureBeat’s analysis of the many announcements there explains how the cybersecurity company is betting on agentic AI to defeat adversaries.

Interested in quantifying how AI is impacting investors’ decisions, I completed an analysis using Crunchbase data covering 342 verified cybersecurity startups with active funding. Selection was weighted toward recent momentum, total funding scale, stage maturity, AI integration, and proof through multiple rounds.

The key takeaway: Institutional capital is consolidating around companies that make autonomous security practical, and agentic AI is at the core of that direction. But AI is not enough; investors are looking for the ability to scale in enterprises once they have AI integrated into their core platforms.

AI in cybersecurity: Tablestakes, not a ticket to premium valuation

Sixty percent of startups integrate AI into their core technology. Yet contrary to hype, that hasn’t bought them higher valuations.

  • AI-integrated startups average $283M in funding.
  • Non-AI specialists average $378M.

Crunchbase data shows investors reward defensible specialization as much as AI capability. Quantinuum’s $925M for post-quantum cryptography and Zama’s $139M for homomorphic encryption prove that solving foundational security problems often supersedes AI as a differentiator.

Still, AI holds weight in investment decisions. Six AI-driven startups pulled $1.70B (52.8%), while four non-AI companies captured $1.51B (47.2%). Both models earn trust by underscoring AI for operational speed and deep tech for architectural resilience. And with seven of ten now at Series B maturity, investors are backing platforms that have already demonstrated enterprise traction, not experiments.

1. Quantinuum ($925M, Series B) Post-Quantum Defense. Closed a $600M Series B in August 2025. The company is building the only mathematical safeguard against the inevitable collapse of RSA and ECC encryption under quantum computing.

2. Saronic ($845M, Series B) Autonomous Maritime Security, Raised $175M in July 2024 for AI-powered unmanned surface vessels. With 90% of trade moving across exposed waterways, Saronic brings AI defense to the physical infrastructure that most enterprises overlook.

3. Auradine ($314M, Series B) AI Silicon for Security. Raised $80M to expand custom silicon that accelerates cryptographic workloads 10x faster than general-purpose hardware, eliminating bottlenecks in AI-driven security deployments.

4. Tines ($271M, Series B) No-Code Automation. Secured $50M Series B. Turns analysts into automation builders, saving 40+ hours weekly with drag-and-drop workflows that are proving critical for overextended SOC teams.

5. Dream Security ($198M, Series B) Critical Infrastructure Defense. Closed $100M in 2025. Their sovereign AI platform equips critical infrastructure with defenses calibrated to nation-state-level threats, providing a layer that traditional enterprise tools cannot reach.

6. Upwind Security ($180M, Series A)  Runtime Cloud Visibility. Raised $100M in December 2024. Focused on runtime intelligence, detecting abnormal behavior live rather than flagging static misconfigurations. Reduces false positives, elevates real threats.

7. Zama ($139M, Series B)  Homomorphic Encryption. Raised $57M in June 2025 after a $73M Series A in March 2024. Provides production-ready fully homomorphic encryption, enabling AI models to compute securely on encrypted data.

8. Noma Security ($132M, Series B)  Securing AI Agents. Closed $100M in 2025. Built to harden AI systems against prompt injection and model poisoning as enterprises push decision-making into autonomous agents.

9. ZeroEyes ($107M, Series B)  Firearm Detection AI. Raised $53M in 2025. Eleven rounds in, their AI models detect firearms on video feeds in seconds—cutting active shooter response time dramatically.

10. Upscale AI ($100M, Seed)  AI Networking Infrastructure. Raised a $100M Seed round in 2025. Building AI-native networking with hardware-accelerated encryption, aimed at high-performance compute environments.

The Bottom Line

Series B dominance (70%) shows that capital is flowing into platforms with market traction, not speculative bets. Forty-six rounds across these ten companies demonstrate durability and enterprise validation. The signal to security leaders is becoming clear based on the escalating nature of weaponized AI attacks: manual security processes are now liabilities. Defending at human speed against AI-enabled attackers is untenable. Investors understand this. $1.41B in recent capital confirms it.

Top 10 fastest-growing segments from Gartner’s latest information security forecast Q4 2024

Top 10 fastest-growing segments from Gartner’s latest information security forecast Q4 2024

Gartner’s latest information security forecast reflects the optimism of most CISOs about their budgets increasing in 2025. Ninety percent of security and risk management leaders, including CISOs, told Forrester they expect a budget increase this year.

According to Gartner’s latest Q4 2024 forecast, end-user spending will surge from $183.7 billion in 2024 to $293.9 billion in 2028, reaching a 12.47% compound annual growth rate.

Information security spending will grow rapidly, driven by increasing investments in areas such as cloud security (25.9% CAGR) and managed security services (15.0% CAGR) as more enterprises face the many challenges of securing hybrid cloud environments.

Key segments, including infrastructure protection and professional services, underscore the urgency nearly all organizations have in securing their critical systems against increasingly lethal AI and generative AI (gen AI) attacks.

Below is a visual representation of the top 10 fastest-growing segments shaping the cybersecurity landscape.

Please click on the graphic below to expand it for easier reading.

Gartner forecast based on latest information security forecast for 4Q, 2024

The 10 fastest-growing information security market segments going into 2025

Infrastructure Protection

With spending projected to grow from $31.3 billion in 2024 to $51.2 billion in 2028 (CAGR: 13.1%), infrastructure protection leads the information security market. Securing infrastructure that will increasingly be used to manage model data, LLMs, and AI apps is one of the core drivers in this segment going into 2025. The latest Gartner forecast reflects the growing demand for infrastructure true protection as more organizations go all in on AI.

Security Professional Services

Spending on professional security services is expected to grow from $27.3 billion in 2024 to $42.3 billion in 2028, attaining a CAGR of 11.6%. These services are critical for implementing zero-trust policies and conducting proactive security assessments.

Managed Security Services

Managed security services spending will rise from $24.1 billion in 2024 to $42.1 billion in 2028, reflecting a CAGR of 15.0%. Outsourcing security to external providers has become essential as companies face a more lethal, AI-dominated threatscape while grappling with talent shortages.

Network Security Equipment

Spending on network security equipment will increase from $21.7 billion in 2024 to $32.8 billion in 2028, attaining a CAGR of 10.9%. This reflects the growing need to secure hybrid and multi-cloud networks as organizations expand their digital perimeters.

Security Consulting Services

Spending on security consulting services will grow from $23.0 billion in 2024 to $32.6 billion in 2028, delivering a CAGR of 9.1%. More organizations are looking outside for in-depth expert advice as they attempt to implement advanced security frameworks. Getting compliance right and ensuring consistency when reporting material events to the Security and Exchange Commission (SEC) are also drivers of this segment’s forecast.

Identity Access Management (IAM)

IAM spending will rise from $17.7 billion in 2024 to $25.4 billion in 2028, achieving a CAGR of 9.4% according to Gartner forecast. A key subsegment, Privileged Access Management (PAM), is projected to reach $2.9 billion by 2025 as growing regulatory compliance requirements on a global scale are expected to drive adoption.

Cloud Security

Cloud security spending will grow from $9.0 billion in 2024 to $22.6 billion in 2028, achieving a CAGR of 25.9%. As cloud environments become more complex, investments in Cloud Security Posture Management (CSPM) and Cloud Workload Protection Platforms (CWPP) will continue to accelerate growth.

Other Security Software

Spending on niche and innovative security software solutions will grow from $9.0 billion in 2024 to $14.7 billion in 2028, attaining a CAGR of 13.0%. This category includes specialized tools and apps used for combating advanced social engineering and adversarial AI-based attacks.

Data Security and Privacy

Spending on data security and privacy will increase from $6.1 billion in 2024 to $10.3 billion in 2028, reflecting a CAGR of 14.0%. Stringent data protection regulations and growing cyber threats are driving investments in this segment.

Application Security

Application security spending is forecasted to rise from $6.3 billion in 2024 to $10.1 billion in 2028, driving a CAGR of 12.7%. This segment addresses vulnerabilities in software applications, which remain a primary target for attackers.

Conclusion

Organizations are prioritizing agility and the ability to anticipate new threats while doubling down on cloud security. Predicted to grow at a 25.9% CAGR, cloud security is the fastest-growing segment in the forecast.

Spending on new tools to detect emerging threats is projected to jump from $9 billion in 2024 to $14.7 billion in 2028, further indicating that organizations are willing to invest in new technologies to stop emerging threats.

Ultimately, cybersecurity has become a more crucial business decision than ever before. While other organization budgets are being slashed going into 2025, cybersecurity continues to see gains and is increasingly seen as an investment in business resiliency.

Gartner’s 13 ways GenAI is improving B2B Sales is the roadmap every business needs

Gartner's 13 ways GenAI is improving B2B Sales is the roadmap every business needs

Generative AI (GenAI) ‘s potential for streamlining the most time-consuming processes in B2B sales is just getting started. As businesses increasingly rely on AI to enhance efficiency, automate routine tasks, and personalize customer engagement, GenAI is set to become a critical differentiator in the race for B2B sales and market leadership.

  • B2B sales organizations using GenAI-embedded sales technologies will reduce the time they spend prospecting and preparing for customer meetings by over 50% within two years.
  • Conversational interfaces based on GenAI will gain momentum and further revolutionize B2B selling. In 2028, they will be the driving force behind up to 60% of B2B sales interactions, up from less than 5% in 2023.
  • Centralized GenAI operations teams are also on the way, championed by Chief Revenue Officers (CROs). These teams will focus on integrating AI-driven strategies into sales and revenue operations. 35% of CROs will have GenAI operations teams online and incorporated into their companies’ strategic planning process by 2025.

The goal: find the most likely wins for GenAI in B2B Sales

Gartner’s recent report, 13 Generative AI Use Cases for B2B Sales, provides an analysis of where GenAI is helping improve B2B sales now and in the future.

“Generative artificial intelligence (GenAI) is reshaping the sales technology landscape, offering innovative solutions in areas such as prospecting, sales analytics, forecasting, and sales enablement. Tools infused with GenAI capabilities are embedded in use cases across the sales function, supporting key priorities such as revenue growth, GTM, cost optimization, and risk mitigation,” write the authors of Gartner’s study.

In defining and ranking the most valuable use cases of GenAI in B2B sales, Gartner examined where the technology is being most effectively applied to improve sales operations, increase seller productivity, and fuel future transformation.

The following multidimensional grid defines the use cases by value and feasibility.

Source: Generative AI Use Cases for B2B Sales, Gartner, Inc.

Gartner evaluated each use case for GenAI in B2B sales by scoring them on two key factors: business value and feasibility. The figure below shows the breakout of value and feasibility factors Gartner has used as a framework to rank the 13 use cases: “While we’ve defined the dimensions of value and feasibility according to our research criteria, companies are encouraged to customize these parameters to align with their own business needs,” the report states.

Source: Gartner, Inc. (2024) Generative AI Use Cases for B2B Sales

Mapping GenAI Use Cases Across Business Functions

Gartner also provides a GenAI use-case pipeline as part of their analysis to graphically explain how the 13 AI-driven strategies or use cases are distributed across business functions, including marketing, sales, and customer success.

The goal is to help organizations identify and take action on the use cases that will deliver the most significant potential impact. Gartner advises that use cases that span multiple stages of the pipeline typically deliver greater overall business value, making them strategic targets for investment. Additionally, the pipeline acts as a guide to identifying the relevant stakeholders within the organization, enabling more focused discussions and alignment on AI implementation priorities.

Source: Gartner, Generative AI Use Cases for B2B Sales.

GenAI is redefining the future of B2B Sales

Within the next three years, GenAI will emerge as one of the main factors that differentiate the most efficient and financially successful B2B sales organizations. With CROs creating operations teams to scale AI improvements across every phase of the sales process and sales teams using AI to automate reporting and manually-intensive tasks, GenAI is supposed to revamp the time-consuming work that gets in the way of selling.

Gartner’s analysis highlights that AI-driven strategies will soon dominate, with significant gains in efficiency and customer engagement. The message is clear: for sales organizations looking to stay ahead, embracing GenAI is not optional—it’s essential. Those who act now will position themselves as leaders in the evolving world of B2B sales, while those who hesitate risk being left behind.

 

Top ten insights CEOs need to know about GenAI going into 2025

Top ten insights CEOs need to know about GenAI going into 2025

CEOs and C-level executives, including line-of-business leaders managing enterprises, no longer have time for AI hype—they need actionable plans that deliver measurable results.

Every CEO I know has a Gen AI tech trends deck ready for board meetings. They’re all impatient for results.

Gartner’s 2024 Generative AI Planning Survey, published yesterday, reflects how impatient CEOs and their teams are gaining traction with GenAI pilots and AI initiatives. The survey involved 822 business executives from North America, Europe, and Asia/Pacific across eight corporate functions.

Key insights from the GenAI planning survey include the following:

  • 11.3% to 19.7% cost savings are expected from GenAI, with the lowest in finance and highest in marketing and HR, as predicted by CEOs and C-level leaders.

  • 87% of CEOs/C-suite are driving GenAI adoption in areas like sales and finance, pushing top-down initiatives for implementation.

  • Legal departments: 26% rolling out GenAI for contract review in 6 months; already widely used for legal research and analysis.

  • 19.7% cost savings in marketing driven by GenAI, making it the most impacted department for efficiency gains.

  • 28% of leaders cite technical challenges as the top barrier to GenAI implementation, followed by talent acquisition (26%) and costs (24%).

  • 69% of GenAI-advanced companies focus on upskilling staff, while 64% are creating new AI-specific roles to meet talent needs.

Cutting through the hype: What CEOs need to know about GenAI going into next year

Rhetoric into results is the new mantra of the C-suite going into 2025.

That’s especially the case with GenAI.

Board members are worried they’re about to get lapped or, worse, see their companies become gradually irrelevant by competitors who are more focused on making GenAI pay than they are. The greater the acuity and insight of how to turn GenAI into a competitive strength, the greater the speed at which an enterprise executes and gets solid results. Speed isn’t optional anymore, it’s table stakes to compete.

Just as every business needs to keep challenging itself to find new paths to reinvent itself to make AI a competitive strength, the same holds for working professionals. There has never been a better time to double down on new skills and master AI tools, technologies, and knowledge.

The following are ten insights every CEO needs to know about GenAI going into 2025:

  • Over the next 12-18 months, GenAI will boost productivity by 22.6%, outpacing revenue growth at 15.8% and cost savings at 15.2%. While cost efficiency and revenue gains matter, the most immediate and substantial impact will be on operational efficiency. Gartner predicts that enterprises that prioritize GenAI integration will see significant increases in both workflow optimization and financial performance.

Top ten insights CEOs need to know about GenAI going into 2025

Source: Gartner’s 2024 Gartner Generative AI Planning Survey

  • 30% of leaders plan to reduce headcount by 3% to 5% in 2024 due to GenAI-driven automation, with an overall average savings of 4.6%. These reductions will primarily affect roles tied to repetitive or manual tasks as organizations seek to streamline operations. Another 18% anticipate more minor cuts of 1% to 3%, while 14% expect deeper reductions of 8% to 10%, signaling that GenAI’s impact will vary by function. Only 10% foresee no layoffs.

Top ten insights CEOs need to know about GenAI going into 2025

Source: Gartner’s 2024 Gartner Generative AI Planning Survey

  • 87% of sales teams are following CEO or C-suite directives to implement GenAI, demonstrating a top-down strategy that prioritizes AI for revenue growth and a more significant competitive advantage. Supply chain (79%) and finance (74%) also see intense executive pressure, indicating that leadership views AI as critical for optimizing operational efficiency and financial management.

Top ten insights CEOs need to know about GenAI going into 2025

Source: Gartner’s 2024 Gartner Generative AI Planning Survey

  • 84% of organizations prioritize embedding GenAI into existing applications as the top method for enabling their use cases, with 34% making it their first choice. Customizing existing models (74%) and training custom models (65%) follow, while only 59% opt for stand-alone tools. Enterprises are focusing on integrating GenAI within their current systems to drive efficiency and impact rather than relying on isolated or siloed solutions.

Top ten insights CEOs need to know about GenAI going into 2025

Source: Gartner’s 2024 Gartner Generative AI Planning Survey

  • HR leads GenAI budget allocation at 7.1%, followed closely by customer service (7.0%) and finance (6.9%). Across functions, business leaders plan to allocate 5.4% to 7.1% of their 2024 budgets to GenAI initiatives, including spending on technology licensing and employee deployment costs. Gartner observes that this shows a solid commitment to embedding GenAI across departments, with HR and customer service prioritizing it for operational efficiency and innovation.

Top ten insights CEOs need to know about GenAI going into 2025

Source: Gartner’s 2024 Gartner Generative AI Planning Survey

  • 54% of C-level executives prioritize privacy concerns as the top GenAI risk, followed closely by misuse (49%) and job displacement fears (48%). These top concerns highlight the critical need for strong governance and risk management frameworks and plans to ensure ethical, secure AI deployment. CEOs need to step up the pace on this now if they’re going to compete in this dimension of their business in 2025.

Top ten insights CEOs need to know about GenAI going into 2025

Source: Gartner’s 2024 Gartner Generative AI Planning Survey

  • According to 28% of leaders, technical implementation, talent acquisition (26%), and governance issues (25%) are the top three barriers to GenAI adoption. North America struggles more with measuring value (30%), while Europe faces higher cultural resistance (24%). These barriers highlight the need for focused strategies to overcome implementation and talent gaps across regions.

Top ten insights CEOs need to know about GenAI going into 2025
  • 32% of service-centric industries struggle with measuring value from GenAI initiatives, significantly more than asset-centric industries. The top barriers for both include the cost of running AI, technical implementation (32% each), and getting the necessary talent (28%). To excel, enterprises need to address these common challenges and tailor strategies that overcome sector-specific obstacles, including data availability (28% for service-centric industries).

Top ten insights CEOs need to know about GenAI going into 2025

Source: Gartner’s 2024 Gartner Generative AI Planning Survey

  • Customer service leads GenAI adoption with 40% using real-time speech and text translation, followed by marketing (38% with chatbots and digital humans), sales (34% with generative business intelligence), HR (29% for job descriptions and skills data), supply chain (30% for chatbots and code generation), finance (22% for coding assistance), legal/risk (17% for legal research), and procurement (18% for contract lifecycle management).

Top ten insights CEOs need to know about GenAI going into 2025

Source: Gartner’s 2024 Gartner Generative AI Planning Survey

  • 76% of mature AI organizations actively recruit additional headcount for existing roles to meet GenAI talent needs, significantly more than the 52% of less mature organizations. They also prioritize running AI literacy programs (67%) and upskilling staff with GenAI skills (67%) to ensure their workforce remains competitive. Mature organizations are also more likely to create new roles for GenAI (67%) and establish AI centers of excellence (45%), showing their commitment to both talent acquisition and long-term AI capability development.

Top ten insights CEOs need to know about GenAI going into 2025

Source: Gartner’s 2024 Gartner Generative AI Planning Survey

Top Seven Takeaways from Gartner’s 2024 CIO GenAI Survey

Top Seven Takeaways from Gartner's 2024 CIO GenAI Survey

For 87% of CIOs, generative AI (GenAI) represents more than a technological advancement—it’s a career-defining opportunity.

Gartner’s 2024 CIO Generative AI Survey finds that GenAI is gaining momentum with CIOs, with 95% believing in the technology’s significant potential to improve their organizations. A significant obstacle: a gap between CIOs and their C-suite peers — tempers their optimism.

While CIOs recognize AI’s potential to unleash productivity gains and improve customer experiences, only a fraction of the C-suite sees it as an urgent priority. Closing that gap underscores CIOs’ essential role in championing GenAI by committing to excel at learning every aspect of the new technology and how it can deliver long-term value to their organizations.

The top seven takeaways from Gartner’s survey provide CIOs with a roadmap on how to take a practical, pragmatic approach to bridge the gaps across the C-suite and help their organizations get results from their GenAI strategies.

Strategic Insights from Gartner’s 2024 CIO GenAI Survey

Gartner’s latest CIO survey on GenAI provides insights into how IT leaders can capitalize on the technology’s significant impact, from career growth and expertise development to helping CIOs achieve more support across the C-suite. Each takeaway focuses on how CIOs can leverage AI to drive success for themselves and their organizations.

Here are the survey’s seven most insightful takeaways:

  • More CIOs are starting to view GenAI as a career-enhancing opportunity. Eighty-seven percent of CIOs see GenAI as a pivotal career advancement opportunity, with 44% of those proficient in AI strongly affirming this view. GenAI’s rapid adoption in organizations is proving itself a technology capable of delivering productivity gains and is increasingly becoming a skill and expertise essential for career advancement. For CIOs leading AI initiatives, it’s not just about technology—it’s about positioning themselves as visionary leaders qualified to step into more senior positions. To maximize this opportunity, CIOs need to prioritize the development of AI strategies that demonstrate clear, measurable business outcomes. Continuous learning and certification programs are given to any IT professional, especially CIOs, who want to maintain a competitive edge and have their careers capitalize on GenAI’s growth trajectory.

Source: Key findings from the 2024 Gartner CIO generative AI survey (ID G00820936). Gartner, Inc.
  • CIOs are more focused than ever on increasing their acumen about GenAI. CIOs are rapidly becoming the in-house experts on AI, with 52% now rating themselves as proficient or advanced, up from 38% nine months ago. This growing expertise is crucial, as 67% of CIOs are tasked with leading AI initiatives, often sharing this responsibility with other C-suite members. Gartner recommends that CIOs deepen their AI knowledge further and foster a culture of AI literacy across their teams to capitalize on this trend. Providing targeted training for IT and business leaders to ensure that AI strategies are fully integrated into broader business goals is quickly becoming table stakes.

Source: Key findings from the 2024 Gartner CIO generative AI survey (ID G00820936). Gartner, Inc.
  • Disconnect between CIO optimism and C-suite prioritization. Despite 95% of CIOs believing in the potential for GenAI to deliver value, the survey reveals a disconnect with the C-suite—only 21% of CIOs who consider themselves highly knowledgeable about AI believe their C-suite sees it as a high priority. This gap suggests a need for more effective communication and strategic alignment. CIOs need to focus on translating AI’s potential into language that resonates with the C-suite. Regular briefings and ROI-focused presentations can help bridge this gap and elevate AI as a top priority for all executive leaders.

Source: Key findings from the 2024 Gartner CIO generative AI survey (ID G00820936). Gartner, Inc.
  • CIOs are leading the charge in AI implementations. CIOs are increasingly in charge of GenAI initiatives, with 48% of CIOs responding to the survey indicating that they are the main executives responsible for these initiatives. Another 28% are part of the team responsible for developing AI strategy. This central role places CIOs at the forefront of digital transformation, requiring them to be strategic leaders and hands-on practitioners. CIOs need to establish clear governance frameworks and metrics for AI initiatives to ensure success and alignment with broader organizational goals. Additionally, partnering with other C-suite members, such as the CFO and CMO, can help secure the necessary resources and support for AI projects.


Source: Key findings from the 2024 Gartner CIO generative AI survey (ID G00820936). Gartner, Inc.
  • Focus on productivity gains. GenAI is proving effective in streamlining operations and improving efficiencies organization-wide, with 74% of CIOs citing productivity as its top business value. AI also improves customer experience (49%) and helps streamline digital transformation (31%). These priorities demonstrate AI’s multifaceted role in modern businesses. Gartner recommends that CIOs integrate AI into crucial or core organizational areas, ensuring that AI initiatives align with organizational objectives and are designed to deliver measurable, scalable outcomes.


Source: Key findings from the 2024 Gartner CIO generative AI survey (ID G00820936). Gartner, Inc.
  • Concerns over AI hallucinations. Although GenAI holds great potential, there are significant risks. According to 59% of CIOs, the biggest worry is “hallucinations” or misleading or incorrect outputs. In close succession, 44% and 48% of CIOs express concern about privacy violations and false information spread by malicious attackers. These dangers highlight the importance of solid governance, ongoing oversight, and continued investments in cybersecurity. According to Gartner, CIOs need to prioritize creating AI ethics guidelines and investing in auditing tools. Gartner also notes that reducing these risks will require cultivating a culture of accountability and transparency.


Source: Key findings from the 2024 Gartner CIO generative AI survey (ID G00820936). Gartner, Inc.
  • C-Suite engagement in AI is growing but still lags. The survey shows that while C-suite engagement with AI is growing, 42% of CIOs note increased investment in understanding AI, and 53% still consider their peers novices, highlighting a critical need for further education and alignment. CIOs need to take the lead and champion targeted AI education and strategy sessions to close this gap, ensuring AI initiatives are fully supported and integrated into the organization’s strategic goals.

Conclusion

In Gartner’s 2024 CIO Generative AI Survey, GenAI is more than a technological advancement—it’s a strategic imperative for CIOs seeking business transformation and career advancement. GenAI is rapidly becoming a cornerstone of modern enterprise strategy, with 87% of CIOs seeing it as a career-enhancing tool and 95% as a business value driver.

With only 21% of CIOs seeing AI as a high priority for their executive peers, the journey is difficult. 74% of CIOs are focused on productivity gains, but the C-suite is cautious. CIOs must gain AI expertise and lead the way in aligning AI initiatives with organizational goals to mitigate risks like AI hallucinations through robust governance. CIOs can use GenAI to achieve business success and career growth by strategically navigating these dynamics to cement their role as digital visionaries.

Bibliography:

Struckman, C. (2024). Key findings from the 2024 Gartner CIO generative AI survey (ID G00820936). Gartner, Inc. https://www.gartner.com/document/820936  (Client access required).

Capgemini report finds top 10 ways enterprises are harnessing the value of GenAI

Capgemini report finds top 10 ways enterprises are harnessing the value of GenAI

 

Eighty percent of enterprises have increased their investment in GenAI over the past year, with nearly one-quarter (24%) now integrating the technology into their operations, up from just 6% in the previous year.

Capgemini Research Institute’s recent report, Harnessing the value of generative AI: 2nd edition: Top use cases across sectors, highlights enterprises’ accelerating pace of GenAI adoption and growing importance across their operations and industries.

“Generative AI is not just a technological innovation; it’s a catalyst for transformative change across multiple sectors, driving productivity gains, operational efficiency, and strategic shifts in business models,” write the report’s authors. Enterprise leaders’ sentiment underscores the increasing recognition of GenAI as a critical technology for staying competitive in an increasingly turbulent economic environment.

According to the report, GenAI’s rapid adoption across IT and marketing indicates that companies are actively integrating it into their core operations to drive tangible, measurable benefits. Capgemini’s findings highlight the need for a strong data governance framework, strategic talent development, and vigilant cybersecurity to maximize GenAI’s potential as companies scale their initiatives.

How enterprises are maximizing GenAI’s value

Capgemini found ten key ways enterprises are positioning themselves to maximize GenAI’s potential. These strategies demonstrate how all companies can potentially invest in and integrate GenAI to boost growth, efficiency, and innovation across departments and industries.

Investment surge reflects growing confidence in GenAI. 89% of large businesses with annual revenues over $20 billion are leading this investment surge, highlighting GenAI’s significance for future growth. Additionally, 73% of companies with revenues between $1 billion and $5 billion have significantly increased their GenAI budgets, showing that this trend is not limited to the largest companies. This investment trend indicates that many companies believe GenAI can drive enterprise evolution and deliver substantial returns, with many expecting double-digit productivity and customer engagement growth.

Capgemini report finds top 10 ways enterprises are harnessing the value of GenAI

GenAI maturity grows steadily across industries. GenAI implementations have continued to mature across industry sectors over the past year. Up from 6% in 2023, 18% of organizations will fully integrate GenAI into most or all functions in 2024. With 64% and 53% of companies enabling GenAI, high-tech and financial services lead. Retail grew 17%–40% and industrial manufacturing 14%–35%. With 53% and 47% of telecom and energy/utilities adopting GenAI, respectively, progress has been made.

Capgemini report finds top 10 ways enterprises are harnessing the value of GenAI

GenAI’s integration across organizational functions is growing. In one year, GenAI IT adoption rose from 4% to 27% across organizational functions. GenAI is improving enterprise productivity and innovation through this broad integration across sales, marketing, operations, and R&D. Capgemini also found that GenAI is transforming operations and creating value across all business areas.

Capgemini report finds top 10 ways enterprises are harnessing the value of GenAI

Productivity and customer engagement gains. Over the last year, organizations that have implemented GenAI have reported a 7.8% increase in productivity and a 6.7% increase in customer engagement. These tangible benefits demonstrate GenAI’s ability to provide real, measurable value to enterprises. Early adopters report significant improvements in key performance metrics, highlighting the strategic importance of incorporating GenAI into business operations.

Capgemini report finds top 10 ways enterprises are harnessing the value of GenAI

Small Language Models (SLM) are gaining momentum. 24% of organizations have implemented SLMs, and 56% plan to do so within three years. These models are cheaper and less computationally intensive than larger AI models, so many companies are piloting and eventually moving them into production. SLMs excel in industry-specific applications, allowing businesses to harness AI’s potential without the infrastructure and resource demands of larger models. SLMs are becoming a good option for companies trying to compete in an AI-driven market as they seek efficient and scalable AI solutions.

Capgemini report finds top 10 ways enterprises are harnessing the value of GenAI

GenAI is enabling enterprises to advance from chatbots to autonomous multi-agent systems. GenAI is helping 62% of organizations upgrade from chatbots to AI agents that autonomously manage complex goals. 48% of users use multi-agent systems, where AI agents operate independently in changing environments. As businesses automate and optimize complex processes with these systems, decision-making and operational efficiency improve across industries. AI has evolved from simple user interactions to complex, agentic use cases, as shown in the image.

Capgemini report finds top 10 ways enterprises are harnessing the value of GenAI

GenAI agents are accelerating the shift to autonomous operations. GenAI agents are increasingly used in enterprise automation, with 82% of companies planning to implement them in 1–3 years. These agents are evolving from supportive tools to autonomous entities that can perform complex tasks without interaction. This shift is significant, with 71% of organizations expecting AI agents to automate workflows and 64% expecting customer service and productivity improvements. AI agents are not just efficient; they are a radical shift toward fully autonomous, AI-driven operations that will transform enterprise productivity and strategic decision-making.

Capgemini report finds top 10 ways enterprises are harnessing the value of GenAI

GenAI is forcing major business strategy shifts. 54% of companies expect GenAI to improve their strategies, up from 39% in 2023. 40% of companies are revising their business models to stay competitive as GenAI becomes more important. As GenAI becomes more important, 74% of businesses believe they must use it to grow revenue and stay ahead of the competition.

Capgemini report finds top 10 ways enterprises are harnessing the value of GenAI

Strengthening data foundations is crucial for GenAI’s success. More than 60% of companies realize GenAI’s potential depends on solid data foundations. Only 51% have documented data integration processes and 46% have AI data management policies. Even enterprises that have adopted GenAI still struggle to make the most of all their external data sources. Capgemini makes it clear that for GenAI initiatives to succeed, companies need scalable, secure data infrastructure.

Tighten AI controls or risk trust and compliance. Ethics in AI deployment is a priority for 57% of organizations, which recognize the need for control mechanisms that can flex and adapt as their business goals change. While 46% have clear AI governance frameworks, 73% agree that human oversight is necessary to validate AI-driven decisions. Without strong governance, bias, and accountability issues could counteract GenAI’s benefits, so organizations must act now.

Conclusion

With 80% of organizations increasing their investment and almost a quarter already including it in their operations, GenAI is fast changing how businesses run. This general acceptance emphasizes GenAI’s importance as a main engine of efficiency and creativity, providing real advantages in customer interaction and output.

Organizations are not only embracing GenAI as AI agents and Small Language Models (SLMs) acquire traction; they are also including GenAI in their basic strategies. Those who match GenAI with their business models, make investments in solid data foundations, and develop the knowledge required to maximize its possibilities will inherit the future. They will lead in the era of artificial intelligence by doing this, establishing new benchmarks for operational excellence and creativity.

Top Ten Insights from Forrester’s 2024 Cybersecurity Budget Benchmarks

Top Ten Insights from Forrester's 2024 Cybersecurity Budget Benchmarks

CISOs are being asked to do a lot more with less as their businesses are going all-in on new digital businesses that demand identity-based security while keeping budgets tight for securing infrastructure against attacks.

Cybersecurity budgets are, on average, just 5.7% of IT annual spending. That’s tight for many security teams. CISOs are rising to the challenge, however, and delivering revenue gains by protecting new digital businesses while keeping infrastructure safe. Achieving that is a quick way for CISOs to advance their careers.

Cybersecurity needs funding to match its business growth potential

The good news is that more CEOs and boards see cybersecurity as a business enabler. The challenge for CISOs, however, is that cybersecurity still gets funded purely for its defensive value – not its upside potential to drive growth.

Many security teams struggle to make ends meet in their budgets while still staying responsive to internal teams’ needs. Forrester’s 2024 Cybersecurity Benchmarks Global Report shows just how tight budgets can get for a CISO and their team. Project-related work and incident management are a constant balancing act for security teams, and keeping them both in check is key to staying under budget.

Top Ten Insights

Cybersecurity budgets are on the low side compared to the growing complexity of threats and risks organizations face.

That’s forcing CISOs to be selective about what they spend on and how they allocate limited resources. Add to that the average spend of $1,070 per enterprise user and $157,000 per cybersecurity employee, and cybersecurity teams have little, if any, room for inefficiencies.

The following are the top ten insights from Forrester’s latest cybersecurity benchmark report:

  • CISOs need to move out of the IT organization and report to their CEOs and board of directors to have a chance at a more realistic budget. Forrester finds that cybersecurity budgets increase when CISOs report directly to the CEO or board of directors. CISOs who can articulate the business value of cybersecurity, demonstrating how it can drive revenue and support strategic goals, are more likely to secure the necessary funding. This shift also reflects a growing recognition of cybersecurity’s strategic importance beyond mere IT operations.
  • Software will dominate cybersecurity budgets in 2024. The report reveals that 35.9% of cybersecurity budgets globally are allocated to software. This trend is particularly pronounced in large enterprises with up to 74,999 employees, where 39.4% of the budget is dedicated to software. Smaller organizations, conversely, spend a higher percentage on outsourcing services due to limited in-house capabilities, which underscores the scalability challenges smaller firms face in maintaining robust cybersecurity defenses.
Top Ten Insights from Forrester's 2024 Cybersecurity Budget Benchmarks

Source: Forrester 2024 Cybersecurity Benchmarks Global Report

  • Cybersecurity spending per user keeps climbing, reaching $1,070. This is another budget constraint CISOs have to factor into their total operations plans for a given year. Forrester notes that “the cybersecurity spend per enterprise user ranges from an average of $947 at extra-large organizations (75,000 or more users) to $1,210 at small organizations (fewer than 10,000 users).
  • Personnel costs consume 28% of the typical security budget. The report highlights that organizations are spending an average of $157,593 per cybersecurity employee. Full-time employees make up 73.5% of security teams, with the global average cost per contracted full-time equivalent (FTE) reaching $194,613. This significant expenditure on personnel underscores the critical role of skilled professionals in maintaining effective cybersecurity defenses.
Top Ten Insights from Forrester's 2024 Cybersecurity Budget Benchmarks
Source:  Forrester 2024 Cybersecurity Benchmarks Global Report
  • System Defense is the leading functional spend category in 2024. Forrester finds that 29% of functional spending is in System Defense alone. The funding levels approved for this category reflect the critical need to protect endpoints and mobile devices against increasingly sophisticated attacks. With adversaries innovating faster than enterprises can keep up, System Defense is a must-have to protect new digital businesses and infrastructure. The following graphic shows cybersecurity spending by functional domain.
Top Ten Insights from Forrester's 2024 Cybersecurity Budget Benchmarks
Source:  Forrester 2024 Cybersecurity Benchmarks Global Report
  • Identity and Access Management (IAM) takes up 21% of functional spending in the typical budget. Identity-driven attacks take many forms, from mass phishing to whale phishing, where senior executives of a company are targeted with tailored campaigns IAM also enhances operational efficiency and fraud reduction, making it a strategic investment for many organizations. Its broad applicability across both internal and customer-facing applications drives its substantial share of the cybersecurity budget.
  • Security analytics and incident handling reach 13% and 14%, respectively. Forrester notes that each of these separate services accounts for a relatively low percentage of the overall cybersecurity budget. Still, most organizations combine spending on these two categories into “detection and response.” Both areas combined equal 26% of the overall security budget, on average.
  • Getting compliance and governance right is a growing concern for many CISOs who are willing to spend their budget to stay in good standing with the SEC. The Security and Exchange Commission’s Cybersecurity Risk Management, Strategy, Governance, and Incident Disclosure adopted on July 26, 2023. The rules adopted by the SEC define a standardized process for cybersecurity disclosures for public companies. These rules require companies to disclose material cybersecurity incidents on Form 8-K or Form 6-K within four business days of determining the incident’s materiality. Additionally, companies must include cybersecurity risk management, strategy, and governance information in their annual reports (Forms 10-K and 20-F). The rules also mandate the use of Inline XBRL for tagging these disclosures.
  • Incident handling is on average, 13.5% of a global cybersecurity budget. This category is the most unpredictable, as it deals with responding to intrusions and breaches that cannot be forecasted. Spending on incident handling varies by company size, with small organizations (fewer than 10,000 employees) aligning with the global average of 13.5%. Larger organizations tend to allocate slightly less, likely due to more extensive preventative measures and diversified cybersecurity resources.
  • Privacy is core to customer trust today and gets funded, even in tough budgeting cycles. The two departments that use privacy-related solutions the most frequently are legal and marketing, which dedicate on average 12% of a cybersecurity budget to them. Forrester notes that this 12% figure is not the total privacy spend of an organization. Rather, the report says, “Data privacy spans multiple areas of the organization, including marketing and legal. Its share of the security budget doesn’t represent the total spending on privacy-related initiatives across the entire technology estate.

Balancing the scales of cybersecurity budgeting

The bottom line is that cybersecurity is a business decision and needs to be funded with that mindset. Organizations need to see the CISO role as a more board-level one so they can share their technology expertise in helping to manage risk.

It’s time for cybersecurity to be funded as a growth engine, not just one used for deterrence alone.

CISOs can balance the scales by looking for an opportunity to elevate their role to a CEO direct report and, ideally, be on the board to help guide their companies through an increasingly complex threat landscape.

GenAI and IoT security are core to Forrester’s top 10 emerging technologies in 2024

Predicting that generative AI (genAI) for visual content, genAI for language, TuringBots, and IoT security will be the four technologies that deliver the most immediate ROI in two years, Forrester’s Top 10 Emerging Technologies In 2024 reflects the urgency more businesses have for making AI pay while securing their most at-risk endpoints.

Rounding out Forrester’s ten emerging technologies are AI agents, autonomous mobility, edge intelligence, quantum security, extended reality (XR), and Zero Trust Edge (ZTE).

Forrester’s stack ranking of technologies by ROI potential

Advising clients to include ten emerging technologies on their radar and roadmap, Forrester has segmented them into short-term, medium-, and long-term groups based on their potential to deliver ROI. Three of the ten emerging technologies are cybersecurity related.

Technologies predicted to deliver the most significant ROI over the next two years

GenAI for visual content and language. Given how quickly genAI’s adoption is accelerating across enterprises via a myriad of cloud-based apps and tools, especially in marketing, digital design, and communications, it’s clear why Forrester predicted that genAI for visual content, genAI for language have the potential to deliver ROI in two years. Forrester notes that “genAI for language is already delivering value in customer support and content creation but continues to advance at a blinding pace. It is accelerating many other technologies as it goes.”

TuringBots are predicted to accelerate app development. The report states that these AI-powered software robots “help developers build applications that deliver more than just code generation” thanks to advancements in genAI for language. TuringBots are defined as “AI-powered software that augments application development teams’ automation and semiautonomous capabilities to plan, analyze, design, code, test, deliver, and deploy while providing assistive intelligence on code, development processes, and applications.”

IoT Security to secure the proliferating number and variety of endpoint devices. Forrester defines IoT security technology as including components that are “familiar to endpoint management and security: asset management, identity and access management (IAM), data security management, Zero Trust networking, and attack surface risk management.” Forrester predicts that deploying IoT security solutions will deliver expected business value within a year as vendors increasingly offer capabilities as part of other cybersecurity platforms.

GenAI and IoT security are core to Forrester's top 10 emerging technologies in 2024

Source: Forrester’s Top 10 Emerging Technologies In 2024

Emerging technologies predicted to deliver ROI in two to five years

AI agents. Forrester is seeing AI agent technology stacks include advanced deep learning techniques, including generative, predictive, and reinforcement learning, that enable greater context, analysis, strategy, and planning. Forrester believes their full realization is two to five years away, predicting that “organizations with large amounts of information and sizable human workforces will likely see the biggest and most immediate benefits.”

Autonomous mobility. Manufacturing and logistics are two industries shifting workloads from initial pilots into production, according to Forrester. Both industries are facing continued labor shortages, regulatory pressures, and rising costs and see the potential to improve traffic and supply chain management results. Key benefits include greater operational efficiencies across shop floors, improved regulatory compliance, enhanced worker productivity and safety, and more accurate data to track environmental sustainability efforts.

Edge intelligence. Edge intelligence, according to Forrester, is “the ability to collect data, make assumptions based on that data, and link that data to relevant, distributed, orchestrated, and contextually driven responses in a network of application, device, and communication ecosystems.” The report further defines the tech stack for edge intelligence as including streaming analytics, edge ML, federated ML, and real-time data management on intelligent devices and edge servers.

Quantum security. Reducing the risk of “harvest now, decrypt later” quantum attacks, providing increased cryptographic agility for the future, and improving digital signatures are a few of the many benefits quantum security delivers. Asymmetric and symmetric key generation, symmetric key distribution via QKD, digital signatures and certificate management, and keeping an accurate list of cryptographic algorithms are some of the most common uses. These benefits and use cases form the basis of Forrestter’s assigning quantum security into the mid-segment of their stack ranking.

GenAI and IoT security are core to Forrester's top 10 emerging technologies in 2024

Source: Forrester’s Top 10 Emerging Technologies In 2024

Emerging technologies predicted to deliver ROI in over five years

Extended reality (XR). Forrester defines XR as “a technology that overlays computer imagery on a user’s field of vision, with augmented reality (AR), mixed reality, and virtual reality (VR) technologies that are supported by the same developer tools, sensors, cameras, and simulation engines.” Their report notes that only 8% of US online adults own a virtual-reality headset, and just 16% have used an augmented-reality device or app. While XR is advancing in training and onboarding, companies are resisting investing in tools like these until they see broad adoption.

Zero Trust Edge (ZTE). ZTE technology has the potential to protect remote workers, retail outlets, and branch offices with embedded local security. Highly distributed enterprises with little variation between sites are predicted to see the greatest benefit first.

Conclusion

Forrester sees security as core to any organization seeking to maximize the value and ROI of emerging technologies.

Three cybersecurity technologies, IoT security, quantum security, and zero trust edge (ZTE)—form the foundation of the ten emerging technologies. “The inclusion of these security technologies underscores a crucial point: the future belongs to those with the foresight and will to invest in security now. As AI capabilities expand, so do the potential vulnerabilities that malicious actors can exploit,” writes Brian Hopkins, vice president, emerging tech portfolio at Forrester.

Defending endpoints need to start with a zero-trust framework that enforces least privileged access and monitors everything happening on the network while also enabling microsegmentation to reduce the blast radius of a potential cyberattack. Relying on legacy account and identity and access management (IAM) systems that assume trust across systems and within identity management data structures is a breach waiting to happen.

Forrester’s top ten emerging technologies show a progression from already having significant use cases and adoption to newer technologies that are nascent in the market. All share a common characteristic with security, however. As technologies get more complex and remain unproven, security technologies need to step up the use of new technologies to counter threats. Quantum security and zero trust edge correspond with the direction of the ten emerging technologies. They reflect the need to keep improving security to protect the best ROI possible with new technologies on the horizon.

Forrester’s top ten trends defining identity and access management in 2024

Stolen identity and privileged access credentials now account for 61% of all data breaches. This figure continues to increase as nation-state attackers, cybercrime groups, and rogue attackers integrate AI into their attack tradecraft.

Adversarial AI is taking aim at identities

 80% or more of breach attempts aim first at identities and the systems that manage them. CrowdStrike’s 2024 Global Threat Report found that identity-based and social engineering attacks are reaching a new level of intensity. CrowdStrike found that attackers are using AI to launch advanced phishing attacks to impersonate legitimate users and infiltrate secure accounts. Attackers have long sought account credentials, but in 2023, their goals centered on authentication tools and systems, including API keys and OTPs.

“What we’re seeing is that the threat actors have really been focused on identity, taking a legitimate identity. logging in as a legitimate user. And then laying low, staying under the radar by living off the land by using legitimate tools,” Adam Meyers, senior vice president counter adversary operations at CrowdStrike, told VentureBeat in an interview early this year. Two of the most infamous Russian nation-state attackers, Fancy Bear and Cozy Bear, led these efforts, with the former exploiting a Microsoft Outlook vulnerability (CVE-2023-23397) for unauthorized server access.

Top ten trends defining identity and access management (IAM) in 2024

Forrester’s recent report, The Top Trends Shaping Identity And Access Management In 2024, provides an insightful view into the future of Identity and Access Management (IAM) and Privileged Identity Management (PIM). The report predicts that threat detection and remediation will improve with the help of A.I. Forrester also predicts that FIDO passkey authentication will go mainstream. In contrast, biometric authentication will slow down due to concerns regarding deepfakes.

Leading IAM providers include AWS Identity and Access Management, CrowdStrike, Delinea, Cradlepoint, ForgeRock, Ivanti, Google Cloud Identity, IBM Cloud Identity, Microsoft Azure Active Directory, Palo Alto Networks, and Zscaler.

Here is a summary of the top ten trends Forrester believes will shape IAM in 2024:

Trend 1: AI Will Improve Identity-Based Threat Detection and Remediation. Generative AI (genAI) is helping to redefine the future of IAM by improving outlier behavior analysis, increasing alerts’ accuracy, and streamlining administrative tasks while guarding against new threats.

98% of security professionals believe AI and machine learning (ML) will be beneficial in fighting identity-based breaches and see it as a pivotal technology in unifying their many identity frameworks. The majority, 63%, predict AI’s leading use case will be greater accuracy in identifying outlier behavior. 56% believe AI will help improve the accuracy of alerts, and 52% believe AI will help streamline administrative tasks.

Forrester asserts that AI will help short-staffed security teams triage alerts and automate time-consuming, mundane aspects of their jobs. Forrester also envisions genAI being used to query, “Which five applications are the riskiest from an identity entitlement perspective?” CrowdStrike announced at RSAC 2024 that Charlotte AI, CrowdStrike’s Generative AI security analyst, can automatically correlate all related contexts into a single incident and generate an LLM-powered incident summary for security analysts.

Trend 2: IAM Platforms Face Increased Scrutiny Of Their Underlying Security. High-profile breaches that began with impersonation leading to identity theft, including MGM and Okta, reflect how social engineering can still bypass IAM safeguards. CISOs are pushing back on their IAM vendors to improve operational processes and security practices and prioritize security for cloud-based SaaS applications and multi-cloud configurations. Forrester writes that their clients running IAM systems expect their vendors to comply with standards like SOC 2, FedRAMP, ISO 27002, and PCI. CISOs and security teams are also asking to vet a vendor’s workforce, including both employees and contractors and understand how the vendor communicates about and addresses security issues.

Forrester’s advice to security and risk management professionals is to “Demand multifactor authentication for all workforce business and admin users, without exception. Prioritize IAM vendors that embrace secure-by-design and secure-by-default principles and value continuous two-way customer engagement to improve their overall cybersecurity posture.”

Trend 3: IAM And Non-IAM Vendors Respond To Identity-Centric Threats. More CISOs and their security teams are taking a zero trust mindset to breaches. They see them as inevitable, and as part of their zero trust frameworks, they’re looking to shut down lateral movement after an intrusion. Forrester observes that “both IAM vendors and non-IAM cybersecurity vendors keep making advances in identity threat detection and response (ITDR). As a result of organic development and acquisitions, ITDR capabilities are being incorporated in platforms from privileged identity management (PIM) vendors like ARCON, BeyondTrust, CyberArk, and Delinea, as well as XDR vendors, such as Cisco, CrowdStrike, Proofpoint, and SentinelOne.”

Trend 4: FIDO Passkey Authentication Goes Mainstream For Workforce And B2C Uses. Forrester notes that a large number of customer-facing sites, including H&R Block, PayPal, and Verizon, are moving to passwordless authentication. At the same time, smaller financial institutions like coinbase.com offer optional fast identity online (FIDO) Authentication and FIDO passkey-based authentication. The research firm expects 30% of B2C websites and apps to offer FIDO passkeys by the end of 2024.

Trend 5: Biometric Adoption Slows Due To Concerns Around Deepfakes. Despite biometric authentication being a security standard on smartphones, CISOs and consumers alike are becoming more concerned about deepfakes. Designing liveness detection and other advanced features for facial and fingerprint recognition systems reduces the threat of spoofing generated by deepfake technology.

As multiple breach attempts have proven, voice biometrics are more susceptible to attack. Forrester notes that in response, the FTC set a Voice Cloning Challenge to “encourage the development of multidisciplinary solutions—from products to procedures—aimed at protecting consumers from artificial intelligence-enabled voice cloning harms, such as fraud and the broader misuse of biometric data and creative content.” Vendors will add additional deepfake detection to their solutions in 2024, resulting in a rebound in biometrics adoption in 2025.

Trend 6: IMG And PIM Vendors Expand Coverage Of Cloud Administrator Identities. Getting multicloud and hybrid cloud security right is getting more challenging and complex to achieve at scale due to configuration complexity. Forrester notes that “zero trust in the cloud starts with understanding the data access entitlements of identities like cloud infrastructure administrators, SaaS administrators, and business users.” Security and risk management professionals need to review cloud administrators’ entitlements that grant access to sensitive data assets and, when necessary, cancel them. Forrester writes, “While tools offer detection and remediation automation, they are no substitute for documented and consistent identity governance processes.”

Trend 7: Government-Issued Digital Identities Continue To Spread. Forrester believes acceptance of government-issued decentralized digital identities (DDIDs) beyond government use cases will grow in 2024. Mobile digital identities, including driver’s licenses, are now available in the US states of Arizona, California, Florida, and Iowa. Jurisdictions that have or will soon issue mobile driver’s licenses include the European Union (based on the eIDAS 2.0 approved set of standards), Estonia, Hungary, and Sweden. Nigeria and the Philippines have digital identities active today. .

Trend 8: B2B IAM Becomes A Differentiating Feature. Security teams and CISOs running them who are operating without an extended IAM ecosystem for partners like contractors, suppliers, and resellers face more severe security risks. B2B IAM involves managing joiner, mover, and leaver (JML) processes differently than internal employees. Forrester predicts that in 2024, IAM vendors will enhance platforms with features like simplified federation onboarding, verifiable credentials for ID verification, and improved access review processes for the extended enterprise.

Trend 9: Commercial and homegrown IAM Solutions Face Growing Demand For Upgrades. Maintaining on-premises IAM systems is becoming more costly and inefficient, making it more attractive to move to a cloud-based platform. Forrester is finding that the brittle, less secure nature of on-premise legacy systems also makes them more difficult to upgrade. Demand is so high for replacing legacy systems that a recent Forrester survey found that the intention to replace homegrown solutions jumped from 4% in 2022 to 18% in 2023.

Trend 10: The Fine-Grained Authorization Market Heats Up. As digital platforms and business app creation continue to proliferate, the need for dynamic and fine-grained access controls is extending beyond security. Forrester says that the IAM market is moving toward centralized and external authorization patterns because of B2B2E and B2B2C relationships and the possibility that genAI could make it easier to create and manage authorization policies.