InsightPress Release

AI boom brings surge in generative AI usage and security risks in Asia Pacific and The Philippines

MANILA, PHILIPPINES – Palo Alto Networks, the global leader in AI driven cybersecurity has released its State of Generative AI 2025 report, revealing an extraordinary 890% increase in Generative AI (GenAI) traffic over the past year. This explosive growth, driven by the accelerating integration of GenAI tools across enterprise environments, underscores both the transformative promise and the emerging security threats posed by AI adoption particularly across the Asia-Pacific and Japan (APJ) region.

The report paints a complex picture: enterprises are rapidly integrating GenAI tools for functions ranging from writing assistance and software development to enterprise search and customer service. On average, organizations are now operating with 66 GenAI applications – 10% of which are classified as high risk due to vulnerabilities such as data leakage, unsanctioned usage and susceptibility to advanced cyberattacks.

In the Philippines, the momentum around AI adoption continues to build with the Department of Science and Technology (DOST) pledging over 2.6 billion PHP in AI investment by 2028. These efforts focus on critical sectors including healthcare, environmental monitoring, disaster risk reduction, and mobility, with the goal of advancing AI-powered innovation and strengthening public services. DOST aims to position the country as a key player in the global digital economy while ensuring AI is leveraged for sustainable development and effective crisis response.

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“AI adoption offers transformative opportunities across both commercial and government sectors in the region. But as this report highlights, we are also seeing an expanding attack surface, particularly with the use of high-risk GenAI applications in critical infrastructure sectors,” said Tom Scully, Director and Principal Architect for Government and Critical Industries, Asia Pacific & Japan, at Palo Alto Networks. “Organizations must balance innovation with strong governance, adopting security architectures that account for AI’s unique risks. From shadow AI and data leakage to the more complex threats posed by agentic AI models. Proactive oversight and adaptive security controls are essential to ensuring that the benefits of AI are fully realized without compromising national security, public trust, or operational integrity.”

Based on traffic analysis from 7,051 global enterprise customers throughout 2024, the State of GenAI 2025 report provides a comprehensive look at adoption trends and the associated cybersecurity challenges. Key regional insights reveal that Filipino users are embracing GenAI tools to enhance productivity and communication. The three most commonly used GenAI platforms in the Philippines are:

  • Grammarly (46.21%)
  • Microsoft PowerApps (33.32%)
  • Microsoft 365 Copilot (13.97%)

These tools highlight the local workforce’s inclination toward enhancing language, workflow and efficiency through GenAI.

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However, this surge in adoption comes with heightened risks. According to the report:

  • GenAI traffic increased by over 890% in 2024. Following the January 2025 release of DeepSeek-R1, traffic related to DeepSeek surged by 1,800% within two months.
  • Data loss incidents linked to GenAI more than doubled, now comprising 14% of all recorded data security events.
  • Shadow AI – unauthorized and unmanaged use of GenAI tools has emerged as a critical challenge, limiting visibility and control for security teams.
  • Critical infrastructure and government sectors are especially vulnerable to high risk models that can be manipulated to generate unsafe or illegal content.
  • The technology and manufacturing sectors are at greater risk, accounting for 39% of AI related coding activity, which raises concerns about intellectual property protection.

“As GenAI tools become more embedded in enterprise operations in the Philippines, the risk of data exposure and threats grows significantly. It is imperative to create stronger guardrails, striking the right balance between AI-driven innovation and security,” said Steven Scheurmann, Regional Vice President for ASEAN at Palo Alto Networks. “At Palo Alto Networks, we recognize the rapid evolution of AI-driven risks. As organizations adopt AI, we’re focused on helping them safeguard against potential cyber risks associated with GenAI, empowering organizations to deploy AI bravely while protecting their entire AI ecosystems.”

To help enterprises navigate the evolving GenAI landscape, the report outlines actionable recommendations:

  • Establish visibility and control: Monitor all GenAI app usage, implement conditional access policies and manage user level permissions to ensure secure deployment.
  • Safeguard sensitive data: Use real time content inspection and centralized policy enforcement to detect and prevent data exfiltration and loss.
  • Defend against AI-powered threats: Adopt Zero Trust security frameworks designed to counter the sophisticated, evolving nature of AI-enabled cyberattacks.

The full report, including regional and industry specific insights, is available to read HERE.

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