Enterprises invest heavily in AI-powered solutions
AI is driving significant changes in attack sources, with 88% of enterprises observing an increase in AI-powered bot attacks in the last two years, according to Arkose Labs.
53% said they have lost between $10 million to over $500 million during the past two years due to negative consequences related to cyberattacks.
Enterprises are investing heavily in AI-powered solutions, which make up 21% of cybersecurity budgets today and will increase to 27% by 2026. 62% of respondents reveal they derive greater value from purchasing AI-powered cybersecurity solutions than building them in-house.
Fake accounts, AI attacks, and rising costs
The commercialization of AI-powered tools, like bots, demonstrates the growing sophistication and scale of attacks, as well as highlights the democratization of attacks contributing to the evolution of the threat landscape. As bad actors refine their tactics, techniques and procedures, enterprises must be equally agile in their defenses.
Threats to revenue-driving websites and apps are the greatest concern with 70% of respondents across industries identifying fake account creation and account takeovers as their top concerns.
AI Enthusiasts, a term coined in the report for those who are ahead of the curve in their use of AI-powered solutions, are realizing value in a number of areas, including improved threat detection and intelligence, enhanced threat defense and reduced cost of securing the business.
However, only 1/5 feel very well prepared to defend against AI-powered attacks and most are suffering real business consequences with 61% reporting higher operational costs and declines in customer acquisition.
When it comes to volumetric AI-powered attacks on companies, stress and confidence are the most commonly felt emotions. When asked which emotions they most associate with AI-powered attacks, responses revealed a disconnect between executive confidence and the stress felt by teams directly handling these threats. Senior executive leadership feels confident (12%) about defending against volumetric AI-powered attacks, but people at the director and manager levels are feeling stressed (12%).
Many global enterprises across industries are leveraging managed services to alleviate stress that directors and managers are experiencing due to the surge in volumetric AI-powered attacks.
Cybersecurity in the AI era
AI presents a double-edged sword for enterprises. While it heightens the sophistication and frequency of cyberattacks and online fraud, it is also becoming indispensable for defense.
56% of enterprises acknowledge that generative AI has intensified these challenges, putting increased pressure on cybersecurity and fraud teams. Compounding this reality is a significant skills gap, 51% of enterprises report a shortage of personnel with AI plus cybersecurity expertise.
Generative AI has significantly lowered barriers for malicious actors, enabling them to execute complex attacks by enhancing traditional techniques such as scraping and phishing with advanced AI tools.
“Enterprises are operating in an AI economy where bad actors leverage the technology for high ROI attacks while legitimate businesses lag due to internal hurdles like governance and approval processes,” said Frank Teruel CFO at Arkose Labs.