Posted by Bengaluru: India leads APAC in AI/ML transactions, according to a new Zscaler study. While India leads in APAC, it is ranked second to the USA as a major contributor to global enterprise AI/ML traffic.
Zscaler has released its ThreatLabz 2025 AI Security Report, which is based on more than 536 billion AI transactions analysed globally on the Zscaler Zero Trust Exchange between February and December 2024.
The report revealed a staggering 3,465% year-over-year jump in AI/ML transactions, showcasing 36x usage over a year. This report also explores recent developments in areas that will undoubtedly influence AI in 2025 and beyond, including agentic AI, the emergence of DeepSeek, and the evolving regulatory landscape.
In the APAC region, India has the highest, accounting for 36.4% of all AI/ML transactions — more than double Japan’s share of 15.2% and nearly triple that of Australia (13.6%). The rest of APAC, including the Philippines (6.5%), Singapore (5.6%), and New Zealand (4.6%), collectively accounted for less than 20%.
ChatGPT Dominates AI/ML Transactions, But Security Concerns Remain
ChatGPT emerged as the most widely used AI/ML application, driving 45.2% of identified global AI/ML transactions in the Zscaler Zero Trust Exchange. However, it was also the most-blocked tool due to enterprises’ growing concerns over sensitive data exposure and unsanctioned use. Other most-blocked applications include Grammarly, Microsoft Copilot, QuillBot, and Wordtune, showing broad usage patterns for AI-enhanced content creation and productivity improvements.
DeepSeek and Agentic AI: Innovation Meets Escalating Threats
AI is amplifying cyber risks, with agentic AI and China’s open-source DeepSeek usage, enabling threat actors to scale attacks. So far in 2025, we’ve seen DeepSeek challenge American giants like OpenAI, Anthropic, and Meta, disrupting AI development with strong performance, open access, and low costs. However, such advancements also introduce significant security risks.
Finance & Insurance Lead Enterprise AI Traffic by Industry
The Finance & Insurance sector accounted for 28.4% of all enterprise AI/ML activity, reflecting its widespread adoption and indicative of the critical functions supported by the industry, such as fraud detection, risk modelling, and customer service automation.
Manufacturing was second, accounting for 21.6% of transactions, likely driven by innovations in supply chain optimisation and robotics automation. Additional sectors, including Services (18.5%), Technology (10.1%), and Healthcare (9.6%), are also increasing their reliance on AI. While each industry also faces unique security and regulatory challenges, posing new risks and possibly impacting the overall adoption rate.
“India’s rise to the top spot in APAC’s AI/ML adoption underscores a thriving innovation landscape but it also highlights the growing attack surface,” said Suvabrata Sinha, CISO-in-Residence, India – Zscaler.
“With GenAI tools becoming integral to everyday workflows, enterprises need real-time visibility, precise controls, and scalable protection. Zscaler’s Zero Trust solutions enable Indian organisations to safeguard users, workloads, and data with policy-driven access rather than outdated network assumptions,” added Sinha.
The report also identified how agentic AI and open-source tools such as DeepSeek have unlocked efficiencies and new avenues for threat actors. A surge in AI-powered phishing, fake AI platforms, and deepfake-driven fraud marks a new phase of cyber threats in India and beyond. Malware campaigns like “Flora AI” have already begun exploiting enterprise interest in GenAI by mimicking legitimate AI tools to deliver infostealers.