Hitachi Vantara Report Reveals 84% of BFSI Leaders Fear Catastrophic Data Loss, While AI Adoption Accelerates Despite Risks
SANTA CLARA, Calif. — March 26, 2025 — The rapid rise of artificial intelligence (AI) is straining data infrastructures across the Banking, Financial Services, and Insurance (BFSI) sector, forcing organisations to grapple with competing priorities of security, accuracy, and sustainability. According to a new survey from Hitachi Vantara, the data storage and hybrid cloud management subsidiary of Hitachi, Ltd. (TSE: 6501), 84% of financial leaders fear catastrophic consequences from data loss, while 41% already rely on AI as a critical function.
The State of Data Infrastructure 2024 Report, which surveyed 231 global IT and business leaders, highlights a stark divide: while 36% recognize data quality as essential for AI success, most prioritise security—leading to gaps in AI performance and long-term ROI.
Key Findings
- Security vs. Accuracy: 48% of respondents cite data security as their top AI concern, yet BFSI AI models achieve only 21% accuracy, and data is accessible when needed just 25% of the time.
- Rising Threats: 36% fear AI-induced data breaches, 38% worry about ransomware recovery, and 32% are concerned about AI-enabled cyberattacks.
- Risky Deployment: 71% admit to testing AI in live environments, while only 4% use controlled sandboxes, exacerbating vulnerabilities.
“Financial institutions are racing to adopt AI, but many lack the data infrastructure to support it securely and effectively,” said Joe Ong, Vice President and General Manager for ASEAN at Hitachi Vantara. “The real barrier isn’t the technology—it’s the ability to manage data at scale without compromising trust or compliance.”
Mark Katz, CTO of Financial Services at Hitachi Vantara, added: “In financial services, a single AI error—like a chatbot leaking sensitive data—can devastate reputations. The industry must balance innovation with accountability.”
Building an AI-Ready Future
The report outlines actionable steps for BFSI organisations:
- Responsible Experimentation: 42% of leaders are upskilling teams through secure sandbox testing.
- Sustainable Infrastructure: Prioritise energy-efficient systems and optimised data practices.
- Unified Systems: Simplify hybrid environments with automated security and centralised data platforms.
- AI-Powered Defense: Deploy AI to detect threats, encrypt data, and enable self-healing storage.
Survey Methodology:
The report reflects insights from 231 BFSI executives and IT leaders across 15 countries.
Download the Full Report:
Banking, Financial Services, and Insurance Industry Report
Learn More About Hitachi Vantara’s AI Solutions:
www.hitachivantara.com
Media Contact:
Eastwest PR for Hitachi Vantara (SEA)
hitachivantara@eastwestpr.com
About Hitachi Vantara:
A subsidiary of Hitachi, Ltd., Hitachi Vantara empowers businesses with data-driven infrastructure and hybrid cloud solutions to fuel sustainable growth.
About Hitachi, Ltd.:
Hitachi drives social innovation through digital, green, and collaborative technologies, operating across digital systems, green energy, and connective industries.
HITACHI is a trademark of Hitachi, Ltd. All other trademarks belong to their respective owners.
Intrigued to read more news from us? Click here for more news and press releases!
Author
About the Author
