How 21st Century CISOs Balance AI Risks Against Rewards

Artificial intelligence is a double-edged sword for modern enterprises.

The role of the chief information security officer (CISO) is central to protecting financial transactions and mitigating payments risk when integrating or developing digital payments innovations. The CISO role is also increasingly vital as it relates to AI.

A new wave of AI tools that turns plain English into working software is upending how companies build and buy technology, as well as creating security and system reliability concerns around the capability of non-technical staff to generate software programs.

With the potential to transform operations, enhance productivity and drive innovation, AI also brings new risks that organizations must manage, including data integrity and structure of models being integrated, which experts have told PYMNTS can hide deep flaws.

Ultimately, AI’s deployment must be accompanied by risk management strategies to protect organizational assets and maintain stakeholder trust. That’s where the role of the CISO comes in, sitting at the epicenter of this balancing act and guiding organizations through the promises and perils of AI.

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As AI becomes embedded in everything from customer service to strategic planning, the CISO’s role has expanded beyond traditional cybersecurity. Today’s CISO must not only safeguard against cyber threats but also navigate the ethical, legal and operational risks associated with AI. This new mandate requires an understanding of AI’s capabilities and limitations, an appreciation for emerging risk scenarios, and a commitment to creating policies that empower the organization to innovate safely.

By automating repetitive tasks, analyzing data and predicting outcomes, AI holds the promise of making businesses faster, more agile and better informed.

The PYMNTS Intelligence report “How GenAI Is Reshaping Strategic Decision-Making and Staffing for CFOs” found that firms that use generative AI for high-impact tasks — like real-time monitoring, workflow automation and decision support — reported higher ROI than those using generative AI for routine tasks. As chief financial officers scale their generative AI use from routine tasks to complex functions, they unlock greater value and efficiency.

For the CISO, however, AI adoption means that risks also scale with the benefits.

Traditional cybersecurity focuses on protecting systems, networks and data. With AI, CISOs must also consider how machine learning algorithms can be manipulated or misused. Adversarial attacks, where hackers subtly alter input data to deceive AI models, have emerged as a particularly insidious threat. AI is trusted to make decisions — often without human oversight — and the consequences of such attacks can be severe.

“AI is vulnerable to hackers due to its complexity and the vast amounts of data it can process,” Jon Clay, vice president of threat intelligence at cybersecurity company Trend Micro, told PYMNTS in April. “AI is software, and as such, vulnerabilities are likely to exist which can be exploited by adversaries.”

See also: CFOs Suit Up for Cyberwar as Risk Management Evolves

The fast-paced nature of AI development means that risks can evolve rapidly. To stay ahead, CISOs are implementing continuous monitoring systems that track AI model performance, flagging deviations from expected behavior. When issues arise, having a clear response plan enables CISOs to mitigate potential damage quickly.

“We have to be aware of how AI is used within our organization and ensure it doesn’t introduce vulnerabilities,” David Drossman, chief information security officer at The Clearing House, told PYMNTS in August, noting that organizations must continuously adapt their security strategies to account for changes, ensuring that new technologies are integrated safely and securely.

As AI becomes a cornerstone of business strategy, CISOs will continue to play a role in balancing its risks and rewards. In many ways, the evolving responsibilities of the CISO reflect the evolving nature of AI itself. From securing data to ensuring ethical decision-making, CISOs are tasked with creating an environment where AI can be harnessed safely, ethically and effectively.

Looking ahead, CISOs must stay agile, adapting to new technologies, emerging threats and shifting regulations. Their ability to balance AI’s potential with its risks will not only protect organizational assets but also pave the way for responsible AI adoption.

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