Zoho State of Workforce Password Security reveals risky gap in Indian Firms

Indian organisations are moving fast towards AI-driven security, but the Zoho State of Workforce Password Security report reveals a deeper concern. While 93 percent of businesses believe AI will strengthen their security, many are still missing basic safeguards that form the foundation of any strong defence system.

This creates a risky imbalance. Companies are investing in advanced tools, yet core elements like access control and credential management are still not widely adopted. The result is a growing gap between what organisations expect AI to do and what their current systems can actually support.

Internal security threats in Indian firms are rising quietly

Internal security threats in Indian firms are emerging as a major concern, with malicious insiders identified as the top threat at 23 percent. This is higher than both ransomware and human error, showing that risks are no longer just external. They are increasingly coming from within the organisation itself.

At the same time, many businesses lack visibility into who has access to what. Around 34 percent report only partial control over critical identities, which makes it easier for internal threats to go unnoticed. When combined with weak access controls, this creates an environment where small issues can quickly turn into serious breaches.

AI-driven security tools in India are growing without strong foundations

AI-driven security tools India are gaining strong interest, with 98 percent of organisations planning to deploy them and 91 percent expecting to increase security budgets. Businesses are focusing on real-time threat detection, user behaviour analytics and automated access control, all of which signal a shift towards more responsive security systems.

However, this rapid adoption is happening alongside basic gaps. Only 25 percent of organisations have implemented strong password policies and multi-factor authentication, while just 9 percent prioritise access management. This shows that while AI tools are advancing, the foundational layers they depend on are still weak.

Zero Trust strategy for startups and enterprises remains incomplete

The Zero Trust strategy for startups and larger enterprises is still far from fully realised. One in three organisations has not implemented a Zero Trust framework, even as AI expands the attack surface. This leaves systems more exposed, especially when access controls are not tightly managed.

Despite this, there is optimism. Around 85 percent of organisations expect to adopt Zero Trust within the next three years. But the gap between current readiness and future plans highlights the need for faster action, especially as threats continue to evolve.

Growing complexity adds pressure on security teams

Security challenges are becoming more complex, with organisations struggling to keep up with evolving threats, manage costs and address skill shortages. These issues are interconnected, making it harder to build a consistent security strategy.

Employees are also using more applications than ever, with nearly 29 percent handling over 10 business apps daily. Each of these adds another layer of credentials that must be managed and secured. Without proper oversight, this complexity increases the risk of exposure across systems.

AI cannot replace strong security basics

The Zoho State of Workforce Password Security report makes one thing clear. AI can improve security, but it cannot replace the basics. Without strong credential management, access control and visibility, even the most advanced tools will fall short.

For organisations, the focus now needs to shift back to fundamentals. Building a strong security foundation is no longer optional. It is essential for making AI work effectively in a rapidly changing threat landscape.

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