Survey shows AI becoming a cybersecurity concern for businesses

First at Five: The Future of Fraud Artificial intelligence can benefit small businesses, but also open them up to cyber attacks.

Artificial intelligence (AI) is becoming a cybersecurity concern for small business owners in Canada, according to a recent survey by the Insurance Bureau of Canada (IBC).

Forty-one per cent of people are anxious their business will be targeted by cyber attack and AI is one of those factors. Forty-four per cent have observed a rise in scam attempts over the past year,” said Mahan Azimi, IBC’s manager of catastrophic risk policy.

The survey reveals 65 per cent of small and medium-sized businesses are worried about AI being used for fraudulent purposes, such as cyber attacks.

The survey suggests language model tools like ChatGPT or Gemini are making messages more convincing and business owners are falling for them.

“We are seeing a proliferation of artificial intelligence into different attacks by cyber criminals. Everything from creating more scams like fraudulent emails, doing their research on targets,” said David Shipley, CEO of Beauceron Security.

Despite the fears of a cyber attack, the number of businesses investing in cybersecurity measures has decreased from 69 per cent in 2023 to 61 per cent in 2024.

“There is this tension between becoming more aware of the risks, but sometimes not making the necessary preparations,” said Azimi.

Shipley said small businesses in Canada are already falling victim to cyber crimes.

“As many as 38 per cent of small businesses will fall victim to a cyber crime with the average cost being 7,800,” he said. “They absolutely are targeting small businesses.”

The Halifax Chamber of Commerce has noticed more attempts at AI-driven cyber attacks, but it isn’t a big problem yet.

“There’s lots of opportunity for people to improve their productivity. Canada has a real productivity crisis so it’s a real opportunity for both small and large businesses to improve their productivity and their performance using AI,” said Patrick Sullivan, CEO of the chamber.

IBC urges businesses to improve cyber resilience and educate themselves on the risks.