Corporate concerns concentrate primarily on AI security matters, with a significant portion of budgets dedicated to addressing these issues

In a recent development, two separate reports have shed light on the evolving landscape of artificial intelligence (AI) adoption in businesses, with a focus on security concerns and trust.

According to KPMG's Q2 2025 report, only 55% of respondents prioritized deploying AI agents from trusted tech providers, a decrease from 63% in Q4 2024. This shift indicates a growing preference among businesses for local and specialized AI solutions over international providers.

One such example is the increasing preference for German AI startups supported by the appliedAI Institute for Europe, known for their innovation and regulatory compliance. Specialist AI telephone assistants like fonio.ai for SMEs and international AI software firms with certifications like Itexus, recognized for secure and scalable AI solutions in fintech and enterprise sectors, are also preferred.

The KPMG report also highlights a growing concern about AI data privacy, with 69% of leaders expressing concerns, a significant increase from the 43% who cited it in Q4 2024. This trend is further reflected in Thales' annual data threat report, which found that 73% of respondents are investing in AI-specific security tools with either new or existing budgets.

Sixty-seven percent of leaders surveyed by KPMG plan to spend money on cyber and data security protections for their AI models, making AI security the second largest security-related expense for organizations, according to Thales. One in 10 respondents in Thales' survey ranked AI security as their largest expense, 13% ranked it second, and 7% ranked it third.

Andrew Lohn, senior fellow at Georgetown University's Center for Security and Emerging Technology, stated that companies' increased security spending is a good sign that they are serious about using AI and not just experimenting with it. Nick Reese, co-founder and COO of Frontier Foundry, echoed this sentiment, stating that to get value from AI investments, the market needs to address the lack of trust and confidence in AI by stress-testing AI models.

Interestingly, the proportion of respondents who said they weren't yet comfortable fully turning tasks over to AI agents increased from 28% to 45%. Regulatory concerns around AI also grew, from 42% to 55% in KPMG's report. However, 52% of leaders cited risk and compliance as a budgetary priority, indicating a proactive approach to addressing these concerns.

The top four risks related to generative AI among Thales' respondents were the rapid transformation of the ecosystem (69%), data integrity issues (64%), trust (57%), and confidentiality (45%). These findings underscore the need for robust security measures and regulatory oversight in the AI sector.

In conclusion, the reports from KPMG and Thales highlight the growing importance of security and trust in AI adoption, with businesses increasingly prioritizing cyber and data security protections for their AI models. As AI continues to permeate various sectors, addressing these concerns will be crucial for ensuring its safe and effective integration.

Corporate concerns concentrate primarily on AI security matters, with a significant portion of budgets dedicated to addressing these issues