A recent IBC survey reveals a decline in cyber resilience efforts as AI heightens security risks
A recent survey conducted by the Insurance Bureau of Canada (IBC) shows that many small and medium-sized business owners in Canada are increasingly worried.
Their concern focuses on the impact of artificial intelligence (AI) on their cyber security.
The survey found that 65 percent of respondents are concerned that AI and other new technologies will make it harder to protect their businesses against cyber threats.
According to IBC, cyber criminals are now using AI to carry out more sophisticated attacks, making it essential for businesses to improve their defences.
Mahan Azimi, Manager of Catastrophic Risk Policy at IBC, stated, “AI has made cyber-attacks easier to automate and harder to detect and can pose a real threat to the integrity and security of any business.”
Azimi highlighted that the increased use of AI by cyber criminals raises the need for stronger cyber resilience among business owners.
AI technologies, such as ChatGPT, have enabled the creation of more convincing social engineering emails, and other technologies are able to adapt to cyber security defences in real time.
Despite this rising threat, the survey results suggest a downward trend in business owners’ investment in cyber resilience. In 2023, 69 percent of surveyed business owners said they were taking steps to reduce cyber risks, but in 2024, this number dropped to 61 percent.
Furthermore, nearly half of the respondents (45 percent) believe their businesses are vulnerable to a cyber-attack or data breach, but 62 percent do not consider cyber security a financial priority.
Only 45 percent of businesses have implemented defences against cyber-attacks, and just 31 percent have increased their cyber security protocols in the last year. An even smaller proportion, 18 percent, reported having cyber-attack insurance.
Azimi noted that business owners need to stay ahead of cyber criminals who are quickly adapting new technologies.
“As cyber criminals are quick to leverage AI and other new technologies, business owners need to stay one step ahead to safeguard their businesses, employees and their customers,” he said. He also emphasized that improving cyber resilience does not have to be expensive or burdensome.
IBC offers free resources to help business owners understand cyber risk and the steps they can take to protect themselves. Azimi added that learning about cyber insurance is a crucial part of managing cyber risks.
To support businesses, IBC has been working on improving cyber resilience through its Cyber Savvy public education campaign.
Additionally, IBC has developed a self-assessment tool specifically for small and medium-sized business owners considering cyber insurance.
The 10-question assessment helps business owners understand the cyber security protocols and best practices that insurers typically look for when assessing risks. The assessment provides insight into the types of questions that insurers may ask during the application process.
