KPMG Launches 'The New Cyber Battleground' Report on AI Risks

Organizations in the UAE are accelerating artificial intelligence (AI) adoption across core business functions, with cybersecurity emerging as a leading area of deployment. This shift comes as the global threat environment grows more complex, with the geopolitical environment continuing to drive cyber activity targeting critical sectors. According to a recent KPMG report, The New Cyber Battleground, the past 18 months have seen an increase in AI-driven cybersecurity, analytics, and automation activity across the Middle East.

KPMG research indicates that more 95% of AI use cases globally fail to deliver measurable business or security outcomes, highlighting a persistent gap between adoption and value realization. The findings point to challenges in problem definition, operating model maturity, and oversight, reinforcing the role of governance in translating AI investment into measurable impact.

In the UAE, where digital infrastructure underpins economic growth, these findings highlight the need to strengthen resilience, governance, and the responsible deployment of AI. While AI adoption is advancing rapidly, governance frameworks are still maturing across many organizations. This gap is becoming a defining factor in how effectively organizations translate AI investment into measurable outcomes.

Globally, 56% of professionals report experiencing mistakes in their work linked to AI work, while 66% rely on AI outputs without validating accuracy. This reinforces the need for structured validation processes, clear accountability, and governance across the AI lifecycle.

This focus comes at a time when cyber threats are becoming more targeted and identity-driven. Recent insights from the UAE Cybersecurity Council indicate that identity theft and social engineering remain primary entry points for attacks. As AI adoption accelerates, these attack vectors are becoming more scalable and harder to detect, reinforcing the importance of robust, well-governed security capabilities.

Trevor Niblock, Partner, Digital Trust, KPMG Middle East, said: “The UAE has demonstrated strong leadership in digital transformation and AI integration. In a more complex and fast-moving threat environment, organizations need to shift focus from speed of deployment to quality of implementation. Embedding accountability, validation, and lifecycle security into AI systems will be critical to strengthening resilience and maintaining trust as these technologies scale.”

As organizations expand the use of AI across cybersecurity functions, from threat detection and response to risk analysis and operational automation, the ability to deploy these capabilities within a structured, well-governed framework is becoming a key differentiator.

In the UAE, AI adoption is moving from experimentation to scaled deployment, with organizations focusing on operationalizing trusted AI. This requires leadership accountability at the board and C-suite level, supported by defined governance structures, robust validation processes, and ongoing oversight. Organizations that align innovation with disciplined execution will be better positioned to strengthen resilience, improve decision-making, and sustain long-term value.