Cyber ​​​​and AI – how to prepare businesses against risks?

A significant portion of businesses around the world remain ill-equipped to manage growing cyber risks, even as artificial intelligence (AI) strengthens the tools available to cybercriminals, according to new research from Beazley.

In Beazley's report “Risk and Resilience: Spotlight on Cyber ​​& Technology Risk 2024”, 26% of global executives identified cyber risk as their top concern this year, down from 34% in 2021. Shockingly, 23% of business leaders admitted to feeling it. they are not prepared to face these threats.

While 24% of global executives plan to increase their investments in cybersecurity, the same percentage intend to explore insurance options that offer both risk and disaster management services. The measures are considered important in the face of evolving cyber attacks due to advances in AI.

The report sheds light on how businesses view the risks associated with cybercrime, technology disruption, and intellectual property amid rapid innovation. Beazley's survey of 3,500 business leaders around the world revealed a worrying trend: 69% of firms believe their current cyber defenses are adequate, as cybercriminals continue to evolve their tactics.

As preparedness declines – only 75% of leaders feel strong in combating cyber threats, down from 78% in 2022 – many businesses may overestimate their ability to defend against attacks.

AI technology has provided significant benefits, allowing companies to manage operations and improve efficiency. Beazley's research found that 25% of businesses are planning AI investments aimed at strengthening their ability to withstand various risks.

Additionally, 68% of leaders predict that AI will eventually replace jobs in their companies. And, among the world's boardrooms, 27% put technological obsolescence as their biggest concern in 2024, while 24% of executives admit that they are not ready to face this challenge.

In addition to its business applications, AI is reshaping the cyber risk landscape. Hackers are using AI to improve traditional attacks such as phishing and to develop new methods such as deep phishing. The rapid evolution of these methods makes it more difficult for companies to detect and protect against threats.

Paul Bantick (pictured), Beazley's global head of cyber risks, emphasized the urgency for businesses to implement comprehensive risk management strategies: “As our report shows, with the advent of technological innovation that will bring about seismic change, the increasing burden of regulating firms, and cybercriminals As the Internet becomes more and more complex, businesses face a wave of new threats.

“The need for robust risk mitigation strategies has never been greater, and insurance can play an important role. By leveraging the vast amount of claims, incident, and threat intelligence data we have and translating it into actionable guidance and advice on high-resiliency 'always on' across a range of cyber risks and technologies, we can help clients better navigate the risks they use. face today.”

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