Why business leaders need to understand the risks and benefits offered by AI
By Gareth Cox, Vice President Sales Asia Pacific and Japan, Exabeam
The extraordinary pace at which Artificial Intelligence (AI) technology is evolving is making it challenging for many business leaders to keep up.
This rate of evolution is being matched by a rapid increase in usage. According to research by consulting firm McKinsey, 78% of organisations now use AI in at least one business function – a significant jump from 72% in early 2024.
However, unfortunately, for many executives their understanding of the capabilities of AI begins and ends with large language models (LLMs). This means they are unaware of how the technology is having an impact in areas such as AI-powered threat detection, the complexities of autonomous systems, and the strategic implications of adversarial machine learning.
This is more than a concerning blind spot: it’s a significant a business risk. Executives need to understand that AI is now both a vast opportunity as well as a growing threat.
Improving knowledge of AI’s potential
AI is now embedded everywhere and delivering significant business benefits in terms of improved efficiency and reduced costs. However, this integration is also unleashing unintended consequences. These include flawed automation, biased outputs, compliance pitfalls, and reputational damage. These issues are not technical glitches but rather fundamental business risks that hammer both trust and resilience.
While business leaders don’t need to be security experts, they must grasp the AI agenda. This means dictating the governance of AI as well as its deployment and risk management across their organisation. Leaders also need to have sufficient knowledge of the technology to be able to ask the right questions of the right people.
Wrongly assuming everyone “just gets it” widens the critical gap between security pros and executive leadership. The real danger isn’t misunderstanding but rather the profound business implications that follow. Without clear, business-aligned AI risk understanding, companies are likely to underinvest, stall decisions, and create a false sense of security.
Business benefits are already evident
The tangible benefits of AI can already be seen. For example, a recent Exabeam study, found that 56% of security teams reported AI has boosted productivity by streamlining tasks, automating routine processes and accelerating response times. These undeniable gains demonstrate the real business value of AI when implemented responsibly and with clear oversight.
However, there are also challenges that need to be addressed. In a May 2025 testimony to the US Senate, OpenAI CEO Sam Altman called for an AI regulatory sandbox to encourage innovation while avoiding fragmented overregulation.
His message was clear. This is not just about technology but rather a geopolitical, economic and competitive force. Leaders who aren’t actively engaged will miss a significant opportunity.
Moving from hype to reality
It is no longer sufficient for senior executives to simply name-drop AI during earnings calls. Effective leadership involves showing (rather than just saying) how AI aligns with business outcomes like growth and resilience. This process begins with the following actions:
- Introducing AI governance processes at the C-suite level:
AI is a cross-functional strategic priority and not just an IT or security task. A C-suite team, including legal, risk, and operations, must align AI initiatives with business goals, prioritise investments and manage enterprise-wide risks and rewards. - Recognising AI as a strategic asset:
To secure executive buy-in, frame AI risks by their business impact: reputational damage, fines, market loss or eroded trust. This helps ensure leaders see AI as a critical business issue, demanding their proactive management, not just a technical one. - Encouraging effective AI regulation and discussion:
It’s important for business leaders to engage with policymakers, regulators and industry groups to advocate for balanced AI regulations. This will help to prevent overregulation at the state level while fostering innovation. - Focusing on transparency and accountability:
Business leaders should prioritise building effective, transparent and auditable AI systems. This will help to reduce risks such as bias and compliance failures which, in turn, will help to ensure long-term trust.
AI is a business-wide challenge
In many organisations, responsibility for deploying and managing AI tools and services sits with the IT department and is disconnected from core business strategy. Instead, AI should be embedded across strategic planning, risk management, and product development with clear ownership from the very beginning.
With the market flooded with new AI products and bold promises, CISOs and other tech leaders must become simplifiers and sceptics who cut through the hype and evaluate solutions based on real value. Generative AI brings innovation but risks repeating past cycles of overpromising and so thorough due diligence is essential.
It’s clear that AI can be a catalyst for future growth. However, unlocking this growth requires business leaders to have a clear understanding of what the technology can deliver, and how it can add the most value to their organisation.
