According to the FICCI–EY Risk Survey 2026, released on February 8, Indian businesses face escalating risks linked to cybersecurity and artificial intelligence (AI) governance. The report reveals that 61% of surveyed executives perceive cyber-attacks and data breaches as major threats to financial stability and reputation, highlighting a shift in digital threats from IT concerns to top-tier board issues.
In addition to cybersecurity challenges, approximately 60% of senior leaders noted that a lack of effective adoption of emerging technologies, particularly AI, hampers operational efficiency. The survey identifies risks associated with AI, including ethical concerns and algorithmic failures, with over 54% indicating inadequate management of these issues. The phenomenon of shadow AI, where employees use unregulated public AI tools, further complicates governance and accountability.
Stricter regulations around data privacy are compounding these challenges, with 56% of participants emphasizing the growing scrutiny on data protection as a critical risk. Additionally, 67% of executives reported that frequent changes in regulatory frameworks necessitate urgent management attention. The implementation of India’s Digital Personal Data Protection (DPDP) Act is prompting companies to reevaluate their governance and compliance systems.