Artificial intelligence (AI) is one of the most transformative technologies of our time. With this transformative power comes a number of new and emerging threats that bring cybersecurity and cyber insurance to the forefront.
The Beazley Spotlight on Cyber and Technology Risks 2023 report states, “For the insurance industry, working with clients to help them tackle these challenges, opportunities, and risks
is vital to ensuring businesses operate in as safe an environment as possible.”
Report Highlights:
- AI-powered cyberattacks: AI is being used by cybercriminals to develop more sophisticated and targeted attacks. For example, AI can be used to create phishing emails that are more likely to fool recipients or to develop ransomware that is more difficult to decrypt.
- AI-enabled disinformation campaigns: Disinformation can be generated by AI and spread on a massive scale. This can be used to manipulate public opinion, sow discord, and damage businesses’ reputations.
- AI-driven surveillance: Governments and corporations use AI to surveil individuals and groups on a scale that was never before possible. This raises concerns about privacy and civil liberties.
- AI-powered autonomous weapons: AI is being used to develop autonomous weapons systems that can kill without human intervention. This raises serious ethical and moral concerns.
“Businesses are struggling to keep up with cyber threats. They need to constantly be thinking about what is next and how to mitigate these risks, as bad actors are always looking for new ways to attack.”
Paul Bantick, Global Head of Cyber Risks, Beazle
In addition to these specific threats, the Beazley report also highlights the general cybersecurity risks associated with the rapid development and deployment of AI. The report notes that businesses may not be adequately prepared to manage the risks associated with AI. Additionally, there is a lack of regulation and governance in the AI space.
The Beazley report offers a number of recommendations on how to mitigate the cybersecurity risks posed by AI.
Recommendations:
- Investing in cybersecurity and data protection measures
- Developing AI ethics policies and guidelines
- Ensuring that AI systems are transparent and accountable
- Advocating for responsible AI regulation
Businesses that take these cybersecurity steps can help to protect themselves from the threats posed by AI and ensure that this powerful technology is used for good.
“Small businesses believe that their cyber risk will fall in the future. This perception seems to rely on SMEs evolving their businesses while cybercriminal’s approaches remain static, Unfortunately, this is not the case. That’s why defence in depth cyber strategy is so important.”
Ian Fantozzi, CEO – Beazley Digital
The threats posed by AI are real and growing. “It is incumbent on insurers and brokers, who play a key role in highlighting the threat to businesses and the positive impact of defence in depth security, to ensure firms do not become desensitised to the cyber risk and expose themselves to ever more effective cyber criminals,” the report states.
Businesses and governments need to take effective cybersecurity steps to mitigate these risks.
Source: The Beazley Spotlight on Cyber and Technology Risks 2023
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