Blind Spots Exposed: Navigating AI, Third-Party Risks, and Compliance in 2025

Dive into Kiteworks’ Data Security and Compliance Risk: 2025 Annual Survey Report, exposing how AI governance gaps, third-party blind spots, and regulatory pressures exponentially increase enterprise vulnerabilities while highlighting 10 critical findings and actionable strategies for visibility and resilience.

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Key Takeaways in the Report

Visibility Cascade Effect

Organizations without clear visibility into third-party ecosystems and AI usage face cascading risks, with 46% also unaware of breach frequencies and implementing zero privacy technologies.

Third-Party Danger Zone

Mid-sized partner networks (1,001-5,000 third parties) represent a “danger zone,” experiencing 46% higher supply chain risks and the worst outcomes in breaches, detection delays, and litigation costs.

AI Governance Gap

Only 17% of organizations have fully implemented AI governance frameworks, leaving 36% of those unaware of AI data usage with no privacy-enhancing technologies and heightened exposure.

Detection Delay Costs

Detection times exceeding 90 days in large ecosystems (>5,000 partners) affect 31% of organizations, correlating with exponentially higher litigation costs over $3 million.

Privacy Program ROI

Mature privacy programs deliver tangible ROI, including 27% reduced security losses, 21% enhanced customer loyalty, and 21% improved operational efficiency.

EU Data Act Readiness Disparities

EU Data Act readiness shows stark industry disparities, with financial services at 47% prepared while education and legal sector is 12% ready (23% refers to having “NO PLANS”), respectively.