In today’s modern world, new technologies come with pros and cons, and AI is a prime example. It is hard to deny the endless possibilities that come with AI, but at the same time, it can be seen as a threat. As much as businesses benefit from AI technology, cyber criminals benefit equally, if not more.

AAG’s research shows breached data costing businesses $4.88 million on average in 2024 and one billion emails being leaked in a year. Despite these alarming losses, StrongDM estimates indicate only 17% of small businesses have cyber insurance, a gamble that could one day return to haunt them.

“There’s been a spike in ransomware attacks involving deep fakes and generative AI social engineering techniques,” notes Jeff Kulikowski, at Westfield Specialty. “In the last 12 to 18 months there has been a dramatic surge in these social engineering assaults,” adds Jeff.

Employees can hardly differentiate AI generated audio as well as video calls from real human interactions. “For this reason, we have advised all insureds to step up their response to the evolving threat and consider their cyber risk insurance,” claims Kulikowski.