A significant portion of businesses around the world remain ill-equipped to handle mounting cyber risks, even as artificial intelligence (AI) strengthens the tools available to cybercriminals, according to new research from Beazley.
The “Risk & Resilience: Spotlight on Cyber & Technology Risk 2024” report reveals that while 26% of global executives cite cyber risk as their top concern, this marks a decline from 34% in 2021. More concerning, 23% of business leaders acknowledge they are not adequately prepared to counter these dangers.
Although 24% of executives plan to increase their cybersecurity investments, an equal percentage are considering insurance solutions that provide both risk management and crisis response. Such measures are becoming crucial as AI fuels more sophisticated cyberattacks.
Beazley’s research underscores how businesses perceive risks stemming from cybercrime, technological disruption, and intellectual property theft amidst rapid innovation. Surveying 3,500 business leaders globally, the report identifies a disconcerting trend: 69% of companies believe their current cybersecurity measures are sufficient, despite the ever-evolving tactics of cybercriminals.
With only 75% of executives feeling confident in their resilience against cyber threats—a drop from 78% in 2022—many organizations may be overestimating their ability to thwart attacks.
AI has brought numerous benefits, such as streamlining operations and improving efficiency. Beazley found that 25% of companies are planning AI investments to bolster their resilience across various risk domains. However, the widespread adoption of AI also presents challenges, with 68% of executives expecting AI to replace jobs within their firms. Additionally, 27% of board members ranked technological obsolescence as their top concern for 2024, while 24% admitted they are unprepared to address this issue.
AI is also transforming the cyber risk landscape. Cybercriminals are leveraging AI to enhance traditional attacks like phishing and are developing more advanced tactics, such as deepfake scams. These rapid advancements make it increasingly difficult for companies to detect and defend against emerging threats.
Paul Bantick, Beazley’s Global Head of Cyber Risks, emphasized the pressing need for businesses to adopt comprehensive risk management strategies. “Our report highlights the seismic societal changes driven by technological innovation, the growing regulatory demands on firms, and the escalating sophistication of cybercriminals. Businesses are facing a new wave of threats.”
“The importance of robust risk mitigation strategies has never been greater. Insurance can play a pivotal role by transforming the vast data on claims, incidents, and threats into actionable insights. By advising on ‘always-on’ resilience strategies for various cyber and technology risks, we aim to help clients navigate the increasingly complex risk landscape,” Bantick concluded.
