The Insurance Bureau of Canada’s (IBC) new survey revealed that 65 percent of small and medium-sized business owners are increasingly concerned about AI-enhanced cyber attacks, but fewer businesses are taking proactive steps to strengthen their cyber resilience.
Mahan Azimi, manager of catastrophic risk policy at IBC, explained that AI has simplified cyber attacks, making them easier to automate and more difficult to detect. "AI applications and new technology are becoming more numerous and widely used by cyber criminals," said Azimi in a statement. He pointed out that tools like ChatGPT enable criminals to create more convincing phishing emails. At the same time, other technologies can adapt quickly to cybersecurity defences, increasing the challenge for businesses trying to protect their systems.
Two-thirds (65 percent) of surveyed small and medium-sized business owners and decision-makers in Canada are concerned AI or new technology will make it harder to protect against cyber risks. Despite these growing concerns, fewer businesses are taking steps to enhance their cyber resilience. In 2023, 69 percent of SMEs said they were working to reduce cyber risks, but in 2024 that figure dropped to 61 percent. Meanwhile, 45 percent of respondents believe their business could be vulnerable to a cyber attack or data breach, yet 62 percent of businesses still do not prioritize cybersecurity in their budgets.
The survey also revealed that only 45 percent of respondents have implemented protections against cyber attacks. Even fewer, 31 percent, reported strengthening their cybersecurity measures in the past year. Additionally, only 18 percent of SMEs have cyber insurance, which exposes many businesses to potential financial damage from an attack.
Azimi emphasized the need for business owners to take action and stay ahead of cyber criminals. "It doesn't need to be expensive or onerous," he said, encouraging businesses to take advantage of IBC’s free resources, which help them understand cyber risks and strengthen their defences. He also stressed the importance of cyber insurance to manage risk more effectively.
IBC has been running its Cyber Savvy public education campaign to support businesses in improving their cybersecurity. The organization also offers a self-assessment tool, which helps business owners understand the cybersecurity protocols they need to implement to qualify for cyber insurance.