French Businesses Brace for AI-Driven Cyber Threats and Enhanced Regulations

New ISG Report Highlights Shifting Cybersecurity Landscape & Growing Demand for Integrated Solutions

Paris, France – August 2025: France’s cybersecurity landscape is undergoing a dramatic transformation, driven by the rise of AI-powered threats, stringent new regulations, and a growing awareness of the multifaceted nature of modern security challenges. A new report from Information Services Group (ISG) reveals that French enterprises are rapidly reassessing their security strategies, increasing budgets, and demanding comprehensive solutions to protect themselves in this evolving digital terrain.

AI-Powered Threats and Regulatory Pressures Drive Security Investments:

The 2025 ISG Provider Lens Cybersecurity – Services and Solutions report reveals that French businesses are responding to a more complex security environment. The report details how France’s adoption of AI-backed defenses, coupled with stricter EU regulations (like the NIS2 directive and AI Act), is forcing businesses to adapt. This increased complexity, coupled with growing cloud adoption, financial constraints, and a cybersecurity talent shortage, is pushing French companies to invest heavily in stronger security measures.

Shifting to Holistic Security Solutions:

The report notes a clear trend towards integrated security solutions. French enterprises are moving away from fragmented security tools and are seeking service providers that can act as trusted advisors and extensions of their internal security teams. Migrating to multi-cloud environments brings unique integration and visibility challenges. Companies are therefore increasingly adopting secure access service edge (SASE) solutions to simplify network security and connectivity management.

Demand for AI-Enhanced Security Services:

Malicious actors are leveraging AI for cyberattacks, necessitating a proactive approach to threat detection and response. Consequently, businesses are actively seeking security service providers that leverage generative AI (genAI) and machine learning (ML) to enhance their own defenses. Investments in AI-powered detection, employee training programs, and automated response mechanisms are burgeoning, underscoring the urgency of this evolving security challenge.

Integrated Platforms and GRC Integration:

French organizations recognize the crucial need for a unified platform to provide a comprehensive view of threats, and for centralized oversight of security defenses. A key finding is the growing importance of integrating governance, risk, and compliance (GRC) policies into overarching security strategies, as the NIS2 directive and AI Act increasingly influence French regulations. The report highlights the significant impact that these requirements have on approximately 15,000 French companies. In times of economic constraints, combined with persistent skill gaps, technical security service (TSS) providers are still vital, specifically in terms of supporting organizations in centralizing platforms and automating processes.

Expert Insights:

“French companies are demanding deeper expertise and tailored solutions to navigate today’s complex cybersecurity landscape,” says Julien Escribe, partner and managing director at ISG. Benoît Scheuber, ISG’s principal consultant and security analyst, adds, “Businesses are focusing on providers who can integrate best-of-breed products efficiently into a unified platform, thus increasing operational efficiency.”

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