UK businesses face steady breach rate as AI raises cyber risk

UK businesses are under renewed pressure to strengthen cyber defences as government officials warn that AI is accelerating attacks faster than expected. The Department for Science, Innovation, and Technology and the Home Office found in the Cyber Security Breaches Survey 2025/2026 that 43% of UK businesses experienced a breach or attack in the prior 12 months, with phishing reported by 38% of all businesses.

AI is not creating entirely new attack types, but it is making sophisticated techniques more accessible. Automated reconnaissance, targeted phishing and rapid vulnerability exploitation are becoming available to less advanced threat actors, widening the gap between emerging threats and client preparedness.

Aon’s 2026 Global Risk Management Survey ranked cyber-attacks and data breaches as the top enterprise risk, with that position expected to hold well into 2028. Rob Kemp of Aon cited fragmented governance and limited testing of AI-driven incident scenarios, while government data showed only around a quarter of organisations using or adopting AI had security practices in place to manage the risks.

Insurers are adjusting risk models, reviewing policy wording and assessing whether clients can demonstrate stronger controls. Recommended measures include timely patching, vulnerability remediation, multi-factor authentication, tighter privileged access controls, updated incident response plans and board-level AI risk dashboards.