State of Generative AI Report

In the latest “State of Generative AI” report from Palo Alto Networks, a remarkable surge in the adoption and utilization of generative AI (GenAI) technologies has been unveiled. This trend marks a significant shift in how businesses, particularly in the entertainment sector, are weaving AI into their operational fabric. Analyzing data from tens of thousands of global tenants, the report highlights key trends that are currently shaping the AI landscape—from explosive growth in usage to rising security concerns.

Explosive Growth in GenAI Usage

The report reveals that GenAI traffic skyrocketed by over 890% throughout 2024. This astonishing increase showcases the rapid evolution of AI models and their increasing importance in enhancing enterprise automation and productivity. What was once viewed as an experimental tool is now becoming an essential resource across various industries, including film and television.

Cybersecurity Challenges Ahead

However, this widespread adoption comes with significant cybersecurity challenges. The average number of GenAI-related data loss prevention (DLP) incidents has more than doubled, increasing by 2.5 times in early 2025. These incidents now represent 14% of all data security breaches. The report cautions that careless or unauthorized use of GenAI applications can result in leaks of intellectual property, regulatory violations, and exposure of sensitive data—issues that are particularly critical in the entertainment industry.

Understanding the Risks

Findings indicate that organizations are utilizing an average of 66 GenAI applications, with approximately 10% classified as high risk. This rapid proliferation is largely due to the absence of well-defined AI usage policies, a pressing need to adopt AI for competitive advantage, and inadequate security measures—factors that leave companies vulnerable to exploitation.

Balancing Innovation and Security

Palo Alto Networks emphasizes the necessity of balancing innovation with robust security frameworks as GenAI continues to transform business operations. The company advocates for a thoughtful approach to integrating GenAI, enabling businesses to harness its transformative potential while effectively managing associated risks.

Research Methodology

To ensure accuracy, the research analyzed GenAI traffic logs from 7,051 customers worldwide throughout 2024. Additionally, anonymized DLP data from January to March 2025 was included. All data was collected and reviewed in accordance with strict privacy and security standards to uphold customer confidentiality.

Insights for the Entertainment Industry

The insights presented in this report stem from GenAI usage across Prisma Access and Next-Generation Firewall (NGFW) environments, focusing on third-party GenAI applications accessed within these systems. Ultimately, Palo Alto Networks aims to empower businesses in the film and television entertainment industry with the knowledge to navigate the rapidly evolving AI landscape safely and to leverage its benefits without compromising data security.