Australian firms face rising data loss threats amid AI adoption

Australian organisations are experiencing persistent data loss as they navigate increased use of artificial intelligence, surging data volumes, and a rise in security threats from both insiders and software agents, according to new industry research.

Data loss sources

The research shows that human actions remain a dominant factor in most data breaches. In Australia, 57% of organisations attributed their most significant data loss incidents to staff or third-party contractors making careless errors. Compromised users were cited by 51%, with 40% identifying malicious insiders as the source.

The data also revealed that a small section of users accounted for the bulk of incidents, with just 1% responsible for 76% of all reported data loss events. Organisations in Australia reported an average of 11 incidents annually, with some facing several breaches each month. The time to resolve these incidents can extend for weeks, increasing strain on security teams and leaving information vulnerable.

AI adoption risks

The adoption of generative AI (GenAI) technology and autonomous agents is emerging as a significant area of concern. Over one third (34%) of Australian businesses see data loss through public or enterprise GenAI tools as a top risk. Additionally, 41% worry about sensitive data being used to train AI models, and 44% flagged unsupervised data access by AI agents as a critical threat.

"We've entered a new era of data security where insider threats, relentless data growth, and AI-driven change are testing the limits of traditional defences. Fragmented tools and limited visibility leave organisations exposed. The future of data protection depends on unified, AI-powered solutions that understand content and context, adapt in real time, and secure information across both human and agent activity," said Ryan Kalember, Chief Strategy Officer, Proofpoint.

Organisations are also struggling to maintain proper oversight of these rapidly deployed tools. In Australia, 44% admitted to lacking sufficient visibility and controls over the use of GenAI in their business. This oversight gap increases risk as AI tools gain privileged access to sensitive corporate and customer data.

Data sprawl challenge

Data growth continues to escalate, compounding security risks. In the past year, 36% of Australian organisations saw their enterprise data volumes rise by 30% or more. Among larger firms, 41% now manage more than a petabyte of data. Data sprawl, particularly into cloud and software-as-a-service platforms, was ranked as a top concern by 48% of Australian respondents, while 44% expressed worry about risks from outdated or redundant information.

Platform data supports these concerns, with the findings highlighting that 27% of cloud storage is now abandoned - inflating both storage costs and the potential attack surface for cybercriminals.

Security team strain

Security operations are under considerable pressure. The fragmentation of security controls and a spread of toolsets is increasing remediation times and hampering visibility. Fifteen percent of Australian firms said that resolving a data loss incident takes between one and four weeks. Meanwhile, 72% use six or more data security vendors, adding further operational complexity and challenging already stretched security teams.

Unified solutions

Australian businesses are shifting towards integrated, AI-powered security solutions in response to these converging risks. Over three in five (62%) have deployed AI-enhanced capabilities for data classification. Forty-two percent see the main benefit of unifying their data security programs as enabling the safe, productive use of AI, while more than half (53%) believe unified solutions will reduce the risk of data loss.

Kalember added, "The future of data protection depends on unified, AI-powered solutions that understand content and context, adapt in real time, and secure information across both human and agent activity."