Shift to Enterprise AI Tools Grows, Yet Data Leakage Risks Remain in Financial Services Sector

As India’s financial services sector accelerates digital transformation and AI adoption, new findings from Netskope Threat Labs reveal a growing tension between innovation and data security.

The latest Financial Services Report highlights that regulated financial data accounts for 59% of all data policy violations linked to generative AI (genAI) — underscoring significant compliance risks in an increasingly AI-driven ecosystem. With India’s financial institutions rapidly embracing AI for customer experience, fraud detection, and automation, the implications for data protection are particularly critical.

GenAI usage is now near-ubiquitous, with 70% of users actively using genAI tools and 97% indirectly interacting with AI-powered applications. However, 94% of these applications rely on user data for training, increasing the likelihood of sensitive financial data exposure.

Encouragingly, organisations are shifting towards safer practices. The use of enterprise-managed genAI tools has surged from 33% to 79%, while reliance on personal AI apps has dropped significantly. Yet ...