The AI MonitorEdge Report

COOs Leverage GenAI to Reduce Data Security Losses

December 2024 Chief operating officers (COOs) increasingly rely on GenAI-driven systems to improve cybersecurity management. Using these tools results in decreased revenue lost due to security breaches and fraud.

Get Unlimited Access
Complete the form below for free, unlimited access to all our Data Studies, Trackers, and MonitorEdge reports.

Thank you for registering. Please confirm your email to view all our Trackers.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    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.

    GenAI’s Pivotal Role in Data Security

    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.

    COOs Wax Positive on GenAI’s ROI

    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.

    How GenAI Can Help Drive Revenue Growth

    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.

    Read More

    PYMNTS Intelligence’s reports contain a wealth of further insights into the evolving use of GenAI. Keep reading about this dynamic technology here.

    About

    PYMNTS INTELLIGENCE

    PYMNTS Intelligence is a leading global data and analytics platform that uses proprietary data and methods to provide actionable insights on what’s now and what’s next in payments, commerce and the digital economy. Its team of data scientists include leading economists, econometricians, survey experts, financial analysts and marketing scientists with deep experience in the application of data to the issues that define the future of the digital transformation of the global economy. This multilingual team has conducted original data collection and analysis in more than three dozen global markets for some of the world’s leading publicly traded and privately held firms.

    The PYMNTS Intelligence team that produced this report:
    Chief Content Officer: John Gaffney
    SVP, Data Products: Yvonni Markaki, PhD
    Senior Writer: Margot Suydam
    Content Editor: Matthew Koslowski

    We are interested in your feedback on this report. If you have questions or comments, or if you would like to subscribe to this report, please email us at feedback@pymnts.com.

    Disclaimer

    The MonitorEdge Report Series may be updated periodically. While reasonable efforts are made to keep the content accurate and up to date, PYMNTS MAKES NO REPRESENTATIONS OR WARRANTIES OF ANY KIND, EXPRESS OR IMPLIED, REGARDING THE CORRECTNESS, ACCURACY, COMPLETENESS, ADEQUACY, OR RELIABILITY OF OR THE USE OF OR RESULTS THAT MAY BE GENERATED FROM THE USE OF THE INFORMATION OR THAT THE CONTENT WILL SATISFY YOUR REQUIREMENTS OR EXPECTATIONS. THE CONTENT IS PROVIDED “AS IS” AND ON AN “AS AVAILABLE” BASIS. YOU EXPRESSLY AGREE THAT YOUR USE OF THE CONTENT IS AT YOUR SOLE RISK. PYMNTS SHALL HAVE NO LIABILITY FOR ANY INTERRUPTIONS IN THE CONTENT THAT IS PROVIDED AND DISCLAIMS ALL WARRANTIES WITH REGARD TO THE CONTENT, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE, AND NONINFRINGEMENT AND TITLE. SOME JURISDICTIONS DO NOT ALLOW THE EXCLUSION OF CERTAIN WARRANTIES, AND, IN SUCH CASES, THE STATED EXCLUSIONS DO NOT APPLY. PYMNTS RESERVES THE RIGHT AND SHOULD NOT BE LIABLE SHOULD IT EXERCISE ITS RIGHT TO MODIFY, INTERRUPT, OR DISCONTINUE THE AVAILABILITY OF THE CONTENT OR ANY COMPONENT OF IT WITH OR WITHOUT NOTICE.
    PYMNTS SHALL NOT BE LIABLE FOR ANY DAMAGES WHATSOEVER, AND, IN PARTICULAR, SHALL NOT BE LIABLE FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL, OR INCIDENTAL DAMAGES, OR DAMAGES FOR LOST PROFITS, LOSS OF REVENUE, OR LOSS OF USE, ARISING OUT OF OR RELATED TO THE CONTENT, WHETHER SUCH DAMAGES ARISE IN CONTRACT, NEGLIGENCE, TORT, UNDER STATUTE, IN EQUITY, AT LAW, OR OTHERWISE, EVEN IF PYMNTS HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
    SOME JURISDICTIONS DO NOT ALLOW FOR THE LIMITATION OR EXCLUSION OF LIABILITY FOR INCIDENTAL OR CONSEQUENTIAL DAMAGES, AND IN SUCH CASES SOME OF THE ABOVE LIMITATIONS DO NOT APPLY. THE ABOVE DISCLAIMERS AND LIMITATIONS ARE PROVIDED BY PYMNTS AND ITS PARENTS, AFFILIATED AND RELATED COMPANIES, CONTRACTORS, AND SPONSORS, AND EACH OF ITS RESPECTIVE DIRECTORS, OFFICERS, MEMBERS, EMPLOYEES, AGENTS, CONTENT COMPONENT PROVIDERS, LICENSORS, AND ADVISERS.
    Components of the content original to and the compilation produced by PYMNTS is the property of PYMNTS and cannot be reproduced without its prior written permission.