Insurance and AI: Addressing Security Concerns for Small Business Owners

A recent survey by the Insurance Bureau of Canada (IBC) has highlighted a growing concern among small and medium-sized business owners regarding artificial intelligence (AI) and its implications for cybersecurity. The survey revealed that 65% of the respondents are apprehensive that AI and new technologies could complicate the protection against cyber risks. This concern stems from the increasing sophistication of cyber-attacks, which are now being automated using AI, making them harder to detect and prevent.

The survey also indicated a decline in cyber resilience preparation and investment among business owners. In 2023, 69% of respondents felt they were doing everything possible to mitigate cyber risks, but this number dropped to 61% in 2024. Additionally, nearly half of the surveyed individuals believe their businesses are currently vulnerable to cyber attacks or data breaches. Despite this, 62% do not prioritize cybersecurity financially. Only 45% have implemented defences against cyber attacks, and a mere 31% have strengthened their cybersecurity protocols in the past year. Alarmingly, only 18% reported having insurance against cyber attacks.

These findings underscore the urgent need for businesses to enhance their cyber resilience to protect against the increasingly sophisticated use of AI in cybercrime.

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