Cybercriminals are increasingly utilizing artificial intelligence (AI) to execute more advanced attacks, prompting growing concern among small business owners.
A recent survey by the Insurance Bureau of Canada (IBC) reveals that 65% of small- and medium-sized business (SMB) owners in Canada are worried that AI and other emerging technologies will complicate efforts to guard against cyber risks.
AI tools, such as ChatGPT, have enhanced the effectiveness of social engineering tactics like phishing emails, while other technologies can adapt quickly to existing cybersecurity measures. Despite these rising risks, the survey points to a troubling decline in cybersecurity investments by SMBs. In 2023, 69% of respondents indicated they were actively working to minimize cyber risks, but that figure dropped to 61% in 2024.
The survey also highlighted several key concerns: 45% of business owners believe their company may be vulnerable to a cyberattack or data breach, yet 62% do not view cybersecurity as a financial priority; only 45% of respondents have taken steps to implement cyber defenses, and just 31% have strengthened their protocols in the past year; and a mere 18% reported having cyber insurance coverage.
Mahan Azimi, manager of catastrophic risk policy at IBC, said: “AI has made cyberattacks easier to automate and harder to detect and can pose a real threat to the integrity and security of any business. With AI applications and new technology becoming more numerous and widely used by cybercriminals, there is a growing need for business owners to improve their cyber resilience.”
The IBC official added: “As cybercriminals 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. It doesn’t need to be expensive or onerous.”
The IBC has several free resources available to business owners that can assist in better understanding cyber risk and the steps that can be taken to improve resilience. It has also been actively promoting cyber resilience through its annual Cyber Savvy campaign, providing tools for businesses to mitigate risks.
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