Globally, three-quarters of companies now use AI-powered applications. In 78% of cases, employees run these applications on personal devices, creating significant security challenges. Data from the Microsoft Digital Defense Report, presented at the Budapest event, highlights both the opportunities and risks of business AI adoption.
Ales Holecek, Microsoft’s vice president for Office applications, said AI is transforming daily life at an unprecedented pace, rivaling the impact of the internet and mobile technology. This transformation has elevated cybersecurity from a niche field to a core element of innovation and business operations, making it essential for cybersecurity leaders to have a seat on corporate boards.
Péter Szabó, general manager of Microsoft Hungary, stressed that Hungarian companies must integrate AI into their business operations as soon as possible but, crucially, with a well-planned strategy.
“We are witnessing a paradigm shift. Just like past technological revolutions, AI is forcing organizations to rethink their workflows. Change management is more important than ever. New skills and expertise are becoming essential in workplaces and labor markets. This puts greater responsibility on public education, adult training, and corporate reskilling programs to ensure a smooth transition,” Szabó said.
Experts at the event cited estimates that AI-driven productivity growth could add EUR 7 trillion to the EU’s GDP in the coming years. A previous Bell Research study suggested that widespread artificial intelligence adoption in Hungary alone could generate an additional HUF 7 tln in annual revenue for the state over the next decade. According to Microsoft’s internal data, every USD 1 invested in AI generates USD 3.7 in returns.
In 2024, businesses worldwide spent USD 44 billion on generative AI investments, more than double the USD 19 bln recorded in 2023.
To accelerate AI adoption, Microsoft has made Copilot Chat free to use. The company is also introducing Copilot Agents, which are available either as a subscription-based or pay-as-you-go service. Holecek described these agents as trusted assistants that will not only automate tasks across various domains but will soon operate autonomously using customer-provided data, with full control over data storage and processing remaining with the client.
However, AI is also fueling cybercrime, which causes USD 9.2 tln in damages globally each year, said Najat Messaoud, Microsoft’s director of security solutions for EMEA. She noted that if cybercrime were a country, it would be the third-largest economy in the world, behind only the United States and China.
Furthermore, cybercrime is growing at a 15% annual rate, outpacing the GDP growth of most major economies. (By way of comparison, the website economicinsider.com identifies what it believes will be the top 10 fastest growing economies in the world in 2025. Only the top-placed nation, South Sudan, has a quicker growth rate, at 27.2%. The second, Guyana, has 14.4%. Libya is at 13.7%. All the remaining top 10 are at less than 10%.)
At 30% per year, cybercrime in Hungary is expanding at twice the global average rate, primarily due to the country’s geopolitical situation, Messaoud added.
Speakers highlighted that Microsoft is unique in leading both AI innovation and cybersecurity. In 2023, Microsoft’s cybersecurity business generated USD 25 billion in revenue, while the company invested USD 20 billion in strengthening cybersecurity infrastructure and software development.
As a result, Microsoft helped identify 1,500 cybercriminals in 2024, up from 300 in 2023.
Messaoud noted that the majority of cyberattacks target passwords. In Microsoft-monitored networks, the number of password-related security incidents jumped from 4,000 in 2023 to 7,000 in 2024.
The Secure Future Initiative, Microsoft’s largest-ever cybersecurity project, directly involves 34,000 engineers and aims to fundamentally reshape public perceptions of cybersecurity. The company has even linked employee compensation to their effectiveness in protecting Microsoft’s and its customers’ data from cyber threats.
“Without cybersecurity, no company can live anymore,” Szabó noted, adding that Microsoft has the highest number of cybersecurity experts around the globe, amounting to some 35,000 people.
Michelle Simmons, general manager of Microsoft for Central Europe, discussed GeoTech, a joint initiative between Microsoft and Globsec. The project aims to help the EU rapidly and responsibly integrate critical technologies, including AI, data analytics, and cloud infrastructure. It also seeks to strengthen transatlantic technology policy cooperation between the EU and the United States.
Through research projects, policy advisory work, and collaboration with industry leaders, GeoTech looks to ensure that the future of technology aligns with democratic values. Microsoft has pledged USD 3 million to support the initiative, with part of the funding dedicated to enhancing cybersecurity for critical infrastructure.
She also noted that generative artificial intelligence is an area where Microsoft sees a “massive growth potential.” According to her, customers see a USD 3.7 return on investment for every dollar invested in GenAI.
This article was first published in the Budapest Business Journal print issue of February 21, 2025.
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