TLDR: A new report by Palo Alto Networks reveals an 890% increase in Generative AI (GenAI) traffic in 2024, particularly in the Asia-Pacific and Japan region, including the Philippines. This rapid adoption, while offering productivity benefits, is expanding the attack surface for organizations, leading to heightened security risks such as data loss and “Shadow AI” usage.
MANILA, PHILIPPINES – The Asia-Pacific and Japan (APJ) region is experiencing an unprecedented surge in the adoption and usage of Generative AI (GenAI) tools, according to the “State of Generative AI 2025” report released by Palo Alto Networks, a global leader in AI-driven cybersecurity. The report highlights an extraordinary 890% increase in GenAI traffic over the past year, driven by the accelerating integration of these tools across various enterprise environments. This explosive growth underscores both the transformative potential and the emerging security threats associated with AI adoption.
Enterprises are rapidly incorporating GenAI tools for a wide array of functions, including writing assistance, software development, enterprise search, and customer service. On average, organizations are now utilizing 66 GenAI applications, with a concerning 10% of these 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 in AI investment by 2028. These investments are focused on critical sectors such as healthcare, environmental monitoring, disaster risk reduction, and mobility, aiming to advance AI-powered innovation and strengthen public services. The DOST seeks 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.
However, this rapid integration comes with significant security challenges. Tom Scully, Director and Principal Architect for Government and Critical Industries, Asia Pacific & Japan, at Palo Alto Networks, stated, “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.” He emphasized the need for organizations to “balance innovation with strong governance, adopting security architectures that account for AI’s unique risks.”
Key findings from the report reveal that GenAI-related data loss prevention (DLP) incidents have more than doubled, now accounting for 14% of all data security incidents. The rise of “Shadow AI”—unauthorized and unmanaged use of GenAI tools—has emerged as a critical challenge, creating blind spots for IT and security teams and making it difficult to control sensitive data flows. Critical infrastructure and government sectors are particularly vulnerable to high-risk models that can be manipulated to generate unsafe or illegal content. The technology and manufacturing sectors, accounting for 39% of AI-related coding activity, face increased concerns about intellectual property protection.
Steven Scheurmann, Regional Vice President for ASEAN at Palo Alto Networks, stressed the imperative for stronger guardrails. “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,” he said. Palo Alto Networks is focused on helping organizations safeguard against potential cyber risks associated with GenAI, empowering them to deploy AI bravely while protecting their entire AI ecosystems.
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The report, based on traffic analysis from 7,051 global enterprise customers, provides an in-depth look into how enterprises are adopting GenAI and where they remain most vulnerable. The exponential growth in GenAI adoption, exemplified by an 1,800% spike in DeepSeek-related traffic within two months of its January 2025 release, underscores the urgent need for proactive oversight and adaptive security controls to ensure the benefits of AI are fully realized without compromising national security, public trust, or operational integrity.
