90% of consumers and businesses are anxious about AI — here’s why

AI’s impact on cybersecurity: A double-edged sword: Artificial Intelligence is reshaping the cybersecurity landscape, presenting both opportunities and challenges for businesses and consumers alike.

• 90% of consumers and businesses express anxiety about AI’s impact on data security and privacy, highlighting widespread concerns about the technology’s implications.

• Cybersecurity leaders in Asia-Pacific anticipate AI being used for malicious purposes, with 50% expecting it to crack passwords or encryption codes, and 47% predicting improved phishing and social engineering attacks.

• Despite concerns, 83% of cybersecurity teams believe they can stay ahead of AI-powered cyberattacks in the future, although only 28% feel highly prepared for such threats currently.

Increasing complexity and vulnerability: The integration of AI and other emerging technologies is adding layers of complexity to business environments, potentially increasing vulnerability to cyberattacks.

• 86% of cybersecurity leaders surveyed admit that increased complexity is making their organizations more susceptible to attacks.

• 41% of organizations have experienced a data breach in the past 12 months, with 47% encountering at least 10 data breaches during this period.

• 76% of those who experienced a data breach report an increase in frequency, while 58% anticipate a higher number of breaches in the coming year.

Adapting to the changing threat landscape: Organizations are actively adjusting their strategies and operations to address the evolving cybersecurity challenges posed by AI and other emerging technologies.

• 70% of organizations are modifying their operations in response to the changing threat landscape.

• Key areas of focus include governance and regulatory compliance (40%), cybersecurity strategy adaptation (39%), and vendor engagement (36%).

• All surveyed organizations plan to implement at least one AI-enabled security tool or measure, with top priorities including hiring generative AI analysts (45%) and investing in threat detection and response systems (40%).

Consumer concerns and expectations: Consumers are increasingly wary of how companies collect, use, and protect their personal and financial data, especially in the context of AI adoption.

• 79% of consumers believe companies are collecting excessive amounts of their personal or financial data.

• 91% are concerned that AI will make it more challenging for companies to secure and manage their data.

• A majority of consumers across Australia, the UK, and the US want greater transparency and regulation regarding the use of their data in AI models.

Implications for businesses: Companies face growing pressure to address consumer concerns and maintain trust in their data handling practices, particularly as they integrate AI into their operations.

• Over 90% of consumers across Australia, the US, and UK may stop transacting with a company that falls victim to a cybersecurity attack.

• 88% in Australia, 85% in the US, and 74% in the UK believe their permission should be sought before personal or financial data is used in AI models.

• A significant majority of consumers want businesses to vet the data security and management practices of third-party providers with access to customer data.

Balancing AI adoption and security: As businesses rush to incorporate AI into their operations, they must prioritize data security and governance to maintain consumer trust and cyber resilience.

• James Blake, Cohesity’s global chief security strategist, warns that some businesses are skipping threat modeling and due diligence in their haste to adopt AI.

• Companies looking to use AI in-house must invest in data security and hygiene to maintain cyber resilience and satisfy consumer expectations.

The road ahead: Navigating AI’s cybersecurity implications: As AI continues to evolve, businesses and consumers alike must remain vigilant and adaptable to address the technology’s cybersecurity challenges while harnessing its potential benefits.

• Organizations must strike a balance between leveraging AI for improved efficiency and ensuring robust security measures are in place to protect against AI-powered threats.

• Consumers will likely demand greater transparency and control over their data, particularly as AI becomes more prevalent in business operations.

• The cybersecurity industry may need to accelerate the development of AI-powered defense mechanisms to stay ahead of increasingly sophisticated AI-driven attacks.