Gen AI Investments to Decline

Forrester analysts predict security leaders will scale back generative AI investments by 10% in 2025. AI productivity gains have fallen short of expectations, forcing CISOs to reprioritize budgets and reassess gen AI’s role in security operations, according to Cody Scott, senior analyst at Forrester.

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Forrester’s 2025 Predictions for Cybersecurity, Risk, and Privacy highlights a shift in how security leaders will approach generative AI, with more level setting and less hype.

“The results of the AI use cases, as they’ve been deployed so far, are not living up to that level of productivity that’s been promised,” Scott said, recommending a focus on measured experimentation. “It’s really trendy to try and get budget and say, ‘It’s because of AI,’ but if the results aren’t living up to it, CISOs won’t put all their eggs in one basket.”

In this video interview with Information Security Media Group, Scott discussed:

• How security leaders can prepare for the first EU AI Act fines that may target organizations using generative AI;
• The steps companies should take to mitigate risks from an impending large-scale IoT breach;
• Why gen AI investments are expected to decline as organizations reassess their AI strategies.

Scott, a senior analyst at Forrester serving security and risk professionals, covers cyber risk management with a focus on cyber risk quantification, enterprise risk management, and governance, risk, and compliance. In this role, he helps Forrester clients tailor and implement effective risk management strategies, processes and technologies that innovate security programs, strengthen operational resilience and deliver business value.