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With the ever-growing threat and sophistication of cyberattacks, chief operating officers (COOs) increasingly turn to GenAI-based data security systems to mitigate security breaches and fraudulent transactions. COOs are optimistic about the impact of deploying these GenAI-driven systems. Many anticipate positive returns on their investments and full AI integration within their organizations in five to 10 years. Many already also predict that GenAI will help reduce the losses in annual revenue due to cybersecurity vulnerabilities.
For a recent CAIO report, PYMNTS Intelligence surveyed 60 COOs at organizations generating more than $1 billion in annual revenue to find out how these executives perceive the benefits of GenAI for managing everything from small to high-impact tasks. The findings provide insights on operational concerns COOs face and how they increasingly relying on GenAI to address complex tasks.
Cyber threats continue to evolve and pose significant risks to organizational data and infrastructure. As a result, COOs' interest in and reliance on GenAI for high-stakes security tasks is growing.
In fact, PYMNTS Intelligence finds that 55% of COOs report that their companies have implemented automated cybersecurity management systems powered by AI -- a threefold increase compared to earlier in the year. Such AI-based systems can identify fraudulent activities, detect anomalies and provide real-time threat assessments. These features help explain the shift from traditional, reactive security approaches to proactive, AI-driven frameworks.
These findings underscore a broader trend of AI becoming an indispensable asset for strategic risk management. As cyber threats grow in sophistication, COOs view AI as an essential tool in maintaining organizational resilience and trust that it can protect their organization from security breaches and fraud.
Return on investment (ROI) is a pivotal consideration for organizations implementing AI-driven data security measures. PYMNTS Intelligence data shows that COOs anticipate a significant long-term ROI from GenAI technologies. Many expect to see very positive returns by 2030, followed closely by full deployment as a result. Firms using the technology for high-impact tasks, such as data security, expect it's ROI to be very positive in 5.6 years.
COOs using GenAI mostly for these high-impact tasks also expect that the technology will become fully embedded in their organizations in 6.9 years, on average. Meanwhile, COOs reporting very high ROI expect that full GenAI integration in their organizations in just 5.7 years, on average. These findings suggest that companies already seeing a very positive ROI have the best expectations for full deployment of GenAI.
COOs' forward-looking mindset reflects confidence in AI's ability to address immediate challenges and unlock long-term opportunities for growth and innovation.
COO optimism regarding the benefits of GenAI is partly driven by the cost-saving potential of automating complex security functions and the ability to mitigate losses from cyber threats through faster and more accurate responses. This means a reduction in revenue losses due to security breaches and operational efficiencies.
For example, COOs at organizations that leverage GenAI to run cybersecurity management systems estimate they saved 5.9% of annual revenue in the last 12 months, compared to 5.4% among all firms surveyed. The estimated share of annual revenue saved increases to 7.7% among those with very positive ROI. Among firms that use GenAI automated systems for high impact tasks, the estimated share of revenue saved is 6.5%.
Leveraging GenAI to detect security breaches or fraud can drive revenue growth by preventing losses that could otherwise result.
PYMNTS Intelligence's reports contain a wealth of further insights into the evolving use of GenAI. Keep reading about this dynamic technology here.