This report dives into the world of AI adoption to explore its benefits, challenges, and how to balance AI innovation with security to safely transform how businesses operate for years to come.
In a new “State of Generative AI” report, Palo Alto Networks has revealed a dramatic rise in the adoption and use of generative AI (GenAI) technologies across its customer base, signaling a pivotal shift in how businesses are integrating AI into their operations. Based on analysis of tens of thousands of global tenants, the company identified critical trends shaping the current AI landscape—ranging from massive usage growth to escalating security concerns.
According to the report, GenAI traffic surged by over 890% throughout 2024. This extraordinary spike reflects the rapid maturation of AI models and their growing value in enterprise automation and productivity. What was once considered an experimental tool is now becoming a fundamental utility across industries.
However, this widespread adoption has brought with it significant cybersecurity challenges. The average number of GenAI-related data loss prevention (DLP) incidents more than doubled, increasing by 2.5 times in early 2025. These incidents now account for 14% of all data security breaches. The report warns that careless or unauthorized use of GenAI applications can lead to leaks of intellectual property, regulatory violations, and exposure of sensitive data.
The findings also reveal that organisations are using an average of 66 GenAI applications, with around 10% of those categorized as high risk. This proliferation is largely driven by a lack of well-defined AI usage policies, an urgency to adopt AI for competitive advantage, and insufficient security protocols in place—factors that leave companies vulnerable to exploitation.
Palo Alto Networks’ report emphasizes the need to balance innovation with strong security frameworks as GenAI continues to reshape business operations. The company advocates for a careful approach to integrating GenAI, one that allows businesses to embrace its transformative potential while mitigating associated risks.
To ensure accuracy, the research analyzed GenAI traffic logs from 7,051 customers worldwide over the course of 2024. Additionally, anonymized DLP data from January to March 2025 was included. All data was collected and reviewed in compliance with stringent privacy and security standards to maintain customer confidentiality.
The report’s insights were derived from GenAI usage across Prisma Access and Next-Generation Firewall (NGFW) environments, focusing on third-party GenAI apps accessed within these systems. Ultimately, Palo Alto Networks aims to equip businesses with the knowledge to safely navigate the rapidly evolving AI landscape and capitalize on its benefits without compromising data security.
