AI Adoption Among SMBs: Rising Demand, Increased Cybersecurity Risks

According to IBM’s Global AI Adoption Index, 35% of companies now use AI-powered tools, though small businesses (SMBs) represent a minority of users. The main barriers for smaller firms include the lack of AI expertise, high costs, and limited access to suitable platforms. Despite these challenges, AI adoption is growing among SMBs, especially in business process automation, which opens new vulnerabilities to cyberattacks.

Umal Nanumura, an experienced software developer and security engineer, highlights that as SMBs turn to AI, they increasingly attract hackers. The average damage from a single cyberattack on a small company is about $2.98 million, Nanumura explains. IBM’s research shows that 60% of businesses with fewer than 50 employees close within six months of a successful cyberattack. Unlike larger enterprises, SMBs lack dedicated cybersecurity budgets, making them easy targets.

Nanumura points out that phishing remains a primary attack method, but AI-based attacks are quickly becoming more common. Neural networks, with their easy setup and documentation, can be exploited to crack complex passwords or bypass biometric security systems. Some types of AI can find the right password with a 100% guarantee, no matter its length or complexity, Nanumura notes. Additionally, hackers using deep fake technology can reproduce faces to fool security systems. AI has already demonstrated success in bypassing biometrics in 20% of cases when moderate security settings are configured.

Even more concerning, AI-powered bots can continuously refine their attacks by learning from machine learning algorithms. Hackers now automate the search for vulnerabilities, allowing AI to penetrate even robust defenses. As Nanumura explains, neural networks can ‘break’ through systems by exploiting weaknesses and improving over time. This makes them increasingly dangerous to smaller firms.

Addressing the AI Cybersecurity Threat

While AI poses risks, it can also be a critical part of the defense strategy for SMBs. Nanumura suggests that businesses should invest in middleware, APIs, and automated updates to protect themselves from vulnerabilities in software packages. One of the biggest problems is incomplete AI training, which leaves gaps in decision-making processes, he says. Improving transparency in AI and implementing compliance procedures, such as limiting access levels, are key strategies to secure small businesses.

SMBs should also consider AI-based defense systems. These tools can quickly detect unusual activity, such as DDoS attacks or unauthorized data access, and respond faster than traditional administrators. Nanumura emphasizes the effectiveness of such AI software against zero-day threats—vulnerabilities not yet patched by developers, making them prime targets for hackers.

Despite the risks, 69% of executives view AI-powered cybersecurity tools as an opportunity to improve their data protection, according to global statistics. However, Nanumura warns that without proper safeguards, AI can become a problem rather than a solution, especially for small businesses that cannot afford major cybersecurity breaches. As SMBs adopt AI to stay competitive, cybersecurity must be a priority to prevent devastating losses.