Cybersecurity Landscape in ANZ
Organisations across Australia and New Zealand are navigating a dual shift in cybersecurity strategy and technology investment. Recent studies reveal growing concerns over AI-related threats alongside aggressive moves towards generative AI (GenAI) integration.
Regional Cybersecurity Concerns
A global study by Arctic Wolf, surveying over 1,200 IT and cybersecurity decision-makers, highlighted distinct regional focuses. Nearly half (45%) of ANZ leaders identified protecting intellectual property, data privacy, and regulatory compliance as their foremost security concerns for the coming year. This emphasis diverges from global responses, where AI adoption drives cybersecurity strategy, particularly in North America and Europe.
ANZ organisations reported the highest rates of cyber incidents, with 85% experiencing at least one attack in the past year, surpassing the global average of 76%. Local businesses were also 9% more likely to suffer significant breaches. Payment of ransomware demands was more common in the region, with nearly three-quarters of targeted firms admitting to paying ransoms to avoid data exposure. Notably, 91% of affected organisations worked with external negotiators, although fewer than half (44%) saw reductions in demanded amounts.
Mark Thomas, Arctic Wolf’s director of security services for ANZ, noted that regional factors shape the response landscape. “The 2025 Trends Report shows that security leaders in Australia and New Zealand are facing a different bottom line. Here, organisations grapple with unique challenges spurred by stringent regulatory frameworks and an uptick in ransomware attacks.”
Investment in GenAI
Research from Snowflake and the Enterprise Strategy Group found that ANZ companies are investing heavily in GenAI. 32% of respondents allocated over a quarter of their technology budgets to this 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.
Customer engagement emerged as a primary application of GenAI among ANZ businesses, with over half focusing on customer-facing initiatives like personalisation tools and digital interactions. Despite growing adoption, implementation hurdles persist, particularly regarding staffing and talent acquisition costs, which exceeded expectations for about 63% of ANZ businesses.
Consumer Perspectives on AI
A separate GlobalData consumer study revealed lingering doubts among insurance customers regarding AI use. While acknowledging benefits like quicker responses and improved efficiency, concerns remained about data privacy, algorithm transparency, and the fairness of AI-driven decisions.
The dual focus on enhancing cybersecurity while embracing GenAI reflects the complex landscape organisations in ANZ are navigating. As they address immediate security concerns while investing in emerging technologies, the balance between risk management and innovation remains crucial.
