AI poses new risks for Small and medium-sized businesses

One significant concern is the increased ability of hackers. AI models empower even less experienced hackers to gain unauthorized access to business computer systems. This can manifest through more sophisticated phishing emails, direct server hacking, and the exploitation of system vulnerabilities. The potential consequences range from financial theft to the compromise of customer data.

“AI has increased the speed and complexity of cyberattacks, by allowing hackers to automate their activity and operate at scale,” said Conor O’Neill, co-founder and CEO of OnSecurity. He warned that cybercriminals are leveraging AI to write exploit code, identify vulnerabilities, and generate phishing and deepfake content. O’Neill emphasized that phishing attacks were the most prevalent and disruptive last year, and their sophistication will likely increase.

AI-generated “deepfakes” – images, videos, or voices used to impersonate individuals – create new avenues for fraud. Risks include fraudulent transactions carried out by individuals posing as customers or suppliers, and even the potential for unknowingly employing unqualified or unauthorized personnel.

Ransomware attacks, already a concern, are amplified by AI. Attackers can now more easily lock businesses out of their computer systems and demand ransom payments for access. There’s no guarantee that paying the ransom will result in the restoration of systems.

Despite these risks, AI offers numerous benefits to SMEs. AI models can automate accounting tasks, potentially reducing the need for constant oversight. Agentic AI, while still in its early adoption phase, has the potential to automate back-office functions like marketing, scheduling, and supply chain management. AI can also assist with tasks like lead generation, market research, and proofreading, freeing up human employees to focus on relationship building and strategic growth initiatives.