Unifying Data Protection and AI Innovation Foreword Over the past year, organizations have beenstrengthening their foundations to apply datasecurity and governance controls to new AIapps and agents. The rise of generative AI(GenAI) is reshaping how work gets done.According to the 2025 Work Trends Index,the majority of global knowledge workers At Microsoft, we believe that visibility,actionability, and integration are key tounlocking the full potential of AI, facilitatedby a unified data security strategy. Integratedsolutions that bring together visibility,protection, detection, and investigation The insights in this paper underscorea clear truth: the organizations best preparedfor the future are those investing in integration,intelligence, and responsible AI adoption. In this third edition of the Data Security Index,we explore how generative AI is reshapingdata security. Security leaders need a unifiedview of their data to adopt AI responsibly. Inresponse, organizations are moving beyondfragmented tools toward integrated platformsthat deliver continuous visibility and consistent We invite you to explore these insights andapply them to strengthen your securityposture while responsibly advancing AIadoption. Together, we can create a security- Rudra MitraCorporate Vice PresidentMicrosoft Data Security and Compliance Introduction In today’s rapidly evolving digitalecosystem, organizations must navigate anincreasingly complex data security landscapeto keep their organization protected andstay ahead of emerging risks. Securityteams are under pressure to do more withlimited time, resources, and talent, even as To that end, teams are increasingly using GenAI itselfto bolster their data security posture – leveragingit to uncover hidden risks, streamline operations,and effectively investigate their data risks – with AI ABOUT THE RESEARCH For the third year, Microsoft commissionedHypothesis Group, an independentresearch and strategy agency, to conduct This Data Security Index initiative has nowexpanded to 10 markets spanning the US,LATAM (Brazil), EMEA (UK, Germany, France),and APAC (India, Australia, Korea, Singapore,UAE) to better understand the needs ofpartners and customers across the globe Against this backdrop of rising complexityand risk, the latest technologies and toolsare reshaping the data security conversation.Among them, generative AI (GenAI) Key Findings 02 01 03 Managing AI-DrivenProductivity Securely From Fragmented Toolsto Unified Data Security Strengthening DataSecurity with GenAI Customers are looking toconsolidate solutions forimproved data security, As organizations embraceGenAI for productivity,the need for more robustdata protection grows. Through agents andautomation, GenAI can beleveraged to enhance Organizations arebalancing AI innovation withresponsibility. Rising incidentslinked to unauthorized AI useare driving stronger controls, Organizations areprioritizing investments indata security, shifting fromtool sprawl to integratedplatforms. A growingemphasis on Data Security Data security leaders areincreasingly utilizing GenAIto fortify their data securityprograms – automatingdetection, streamlininginvestigations, and enhancing 32% of surveyed organizations’data security incidentsinvolve GenAI 86% 82% of surveyed leaders preferintegrated platforms overfragmented tools, citingbetter visibility, fewer alerts,and improved efficiency80%+ of surveyed organizationshave developed plansto use GenAI in theirdata security program(+18pp increase vs. 2024) 47% of surveyed organizationsare implementingGenAI controls(+8pp increase vs. 2024) 39% of surveyed organizations areusing GenAI agents for datasecurity and 58% of surveyedorganizations say they are of surveyed organizations areimplementing or developingDSPM strategies FromFragmentedTools to Unified Organizations areprioritizing data securitymore than ever, directingnew investment toward 88% percent of surveyed decision-makers anticipate their data security andcompliance budgets will increase in thenext year. Ultimately, the objective behind “If my team could do everythingin their day-to-day roles in oneecosystem, that would make life Head of IT in Manufacturing Teams struggle with visibility and governancebecause they lack a unified view of their data estate Decision-makers cite that their top challengeswith data visibility center around poorintegration, lack of a unified view acrossenvironments, and disparate tools. One These silos make it difficult for teamsto connect insights, correlate events, and Leaders are respondingby consolidating toolsand investing in unifiedplatforms that simplify 86% of surveyed decision-makers agreethat a comprehensive platform withintegrated solutions outperforms managingmultiple best-in-breed tools that have to bemanually integrated and maintained. “We’re trying to usefewer vendors. If weneed 15 tools, we’d rathernot manage 15 vendorsolutions. We’d preferto get that down t