Organisations across Australia and New Zealand are navigating a dual shift in cybersecurity strategy and technology investment, with growing concerns over AI-related threats and an aggressive move towards generative AI (GenAI) integration, according to two recent studies.
A recent global study commissioned by Arctic Wolf surveyed over 1,200 IT and cybersecurity decision-makers, including respondents in ANZ.
The findings highlighted a distinct regional focus: nearly half (45%) of ANZ leaders identified protection of intellectual property, data privacy, and regulatory compliance as the foremost security concerns for the coming year.
This emphasis diverges from global responses, where AI adoption is seen as the primary driver of cybersecurity strategy, particularly in North America and Europe.
ANZ organisations also reported the highest rates of cyber incidents, with 85% experiencing at least one attack in the past year – well above the global average of 76%. Furthermore, local businesses were 9% more likely to suffer significant breaches.
Payment of ransomware demands was also more common in the region. Nearly three-quarters of targeted firms admitted to paying ransoms to avoid the exposure of stolen data. Notably, 91% of affected organisations worked with external negotiators, although fewer than half (44%) saw reductions in the demanded amounts.
Mark Thomas, Arctic Wolf’s director of security services for ANZ, stated that regional factors are shaping the response landscape.
“The 2025 Trends Report shows that security leaders in Australia and New Zealand are facing a different bottom line. Here, organisations are grappling with a unique set of challenges spurred on by stringent regulatory and compliance frameworks and an uptick of ransomware attacks. It’s no surprise that the key drivers for security strategies reflect the broader business trends we’re seeing in region,” he said.
The focus on cybersecurity comes as research from Snowflake and the Enterprise Strategy Group found that ANZ companies are investing heavily in GenAI, with 32% of respondents allocating more than a quarter of their technology budgets to the emerging field – surpassing the global average of 25%.
These investments appear to be delivering modestly higher returns, with ANZ firms reporting an average ROI of 44%, compared to 41% globally.
Moreover, 91% of local respondents believe GenAI has helped accelerate decision-making processes, ahead of the 84% global benchmark.
Customer engagement emerged as a primary application of GenAI among ANZ businesses. More than half of respondents are focusing on customer-facing initiatives – such as personalisation tools and digital interactions – rather than internal process automation.
Despite growing adoption, implementation hurdles persist. About 63% of ANZ businesses said staffing and talent acquisition costs exceeded expectations, compared to 48% globally. Data integration also presented challenges, with local firms more likely to report fragmented data environments and time-consuming preparation processes.
Parallel findings from a separate GlobalData consumer study indicate lingering doubts among insurance customers.
While users acknowledged benefits like quicker responses and improved efficiency, concerns remain around data privacy, algorithm transparency, and the fairness of AI-driven decisions.
