Generative AI Adoption in Retail Hits 95%, but Security Risks Remain

GenAI adoption in retail has surged to 95%, with companies moving from risky personal accounts to secure, organisation-approved platforms.

A new report from Netskope Threat Labs shows that adoption of generative AI (genAI) in the retail sector has surged to 95% this year, up from 73% in 2023. At the same time, use of personal genAI accounts at work has dropped sharply—from 74% of employees in January to just 36% in June. Security experts say this decline reflects a growing move toward organisation-approved AI platforms, which now account for 52% of workplace usage, more than double last year’s figure.

The shift is seen as a positive step for data security. Personal accounts often expose sensitive business information, including source code (47%) and regulated customer data (39%). Passwords, API keys, and intellectual property are also at risk. By encouraging employees to use authorised platforms such as Azure OpenAI, Amazon Bedrock, or Google Vertex AI, retailers are able to balance productivity gains with stronger data safeguards.

The report also highlights new risks. Employees are experimenting with advanced AI platforms to build and deploy models, sometimes bypassing security controls. This “shadow AI” trend poses fresh challenges, particularly when tools connect directly to enterprise data sources.

Netskope also found attackers increasingly exploit trusted cloud services to deliver malware, with Microsoft OneDrive, GitHub, and Google Drive among the most affected.

Commenting on the findings, Netskope’s Gianpietro Cutolo said the focus is shifting from blocking AI to managing it securely. HUGO BOSS CISO Stefan Baldus added that retailers must embrace AI’s potential while ensuring full transparency and protection of sensitive data.

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