A significant proportion of businesses around the world remain ill-equipped to deal with growing cyber risks, even as artificial intelligence enhances the tools available to cybercriminals, according to new research from Beazley.

In Beazley’s “Risk and Resilience: Focus on Cyber ​​and Technology Risk 2024” report, 26% of global executives identified cyber risk as their top concern this year, down from 34% in 2021. Alarmingly, 23% of business leaders admitted they felt unprepared to address these threats.

While 24% of global CEOs plan to increase their cybersecurity investments, the same percentage intend to explore insurance options that provide risk and crisis management services. These measures are essential in the face of increasingly sophisticated cyberattacks as a result of advances in artificial intelligence.

The report sheds light on how businesses view the risks associated with cybercrime, technological disruption and intellectual property in a context of rapid innovation. A survey of 3,500 business leaders worldwide by Beazley revealed a worrying trend: 69% of companies believe their current cyber defenses are adequate, even as cybercriminals continue to evolve their tactics.

With preparedness declining—with only 75% of leaders feeling resilient against cyber threats, compared to 78% in 2022—many companies may be overestimating their ability to repel attacks.

AI has delivered significant benefits, allowing businesses to streamline operations and improve efficiency. Beazley’s research found that 25% of businesses are planning investments in AI to boost their resilience to various risks.

Additionally, 68% of leaders expect AI to eventually replace jobs within their companies. 27% of global boards also rank technological obsolescence as their top concern in 2024, with 24% of executives admitting they are not prepared to address this challenge.

In addition to its commercial applications, AI is reshaping the cyber risk landscape. Hackers are exploiting AI to enhance traditional attacks like phishing and develop new methods like deepfake scams. The rapid evolution of these technologies is making it harder for businesses to detect and defend against threats.

Paul Pantic (pictured), global head of cyber risk at Beazley, stressed the urgent need for businesses to adopt comprehensive risk management strategies: “As our report shows, with technological innovation set to transform society, the regulatory burden on businesses increasing, and cybercriminals becoming more sophisticated, businesses are facing a wave of new threats.

“The need for robust risk mitigation strategies has never been greater, and insurance can play a critical role. By leveraging the vast amount of claims, incident and threat data we have and translating it into actionable guidance and advice on ‘ongoing’ resilience to a range of cyber and technology risks, we can help clients better manage the risks they face today.”

What do you think of this story? Share your thoughts in the comments below.