19 August, 2025
uk-businesses-face-ai-triple-threat-amid-rising-cyber-risks

A series of recent high-profile breaches has underscored the vulnerability of UK organizations to increasingly sophisticated cyber threats, particularly as artificial intelligence (AI) becomes more integrated into business operations. Research from CyberArk has identified AI as a complex “triple threat,” serving not only as an attack vector but also creating new security gaps while being employed defensively. As companies navigate this evolving landscape, placing identity security at the core of AI strategies is vital for future resilience.

The Evolving Nature of Cyber Threats

AI has fundamentally changed traditional attack methods. Phishing remains the most common entry point for identity breaches, but it has evolved dramatically. Attackers now utilize AI-generated deepfakes, cloned voices, and messages that closely resemble legitimate communications. Last year, nearly 70% of UK organizations reported experiencing successful phishing attacks, with over a third facing multiple incidents. This escalation highlights that even with robust training and technical safeguards, AI can deceive individuals by mimicking trusted contacts and exploiting psychological vulnerabilities.

Organizations can no longer rely solely on conventional perimeter defenses to thwart these threats. They must adopt stronger identity verification processes and foster a culture that encourages employees to flag and investigate suspicious activities without hesitation.

Leveraging AI for Defense

While AI enhances attackers’ capabilities, it also revolutionizes the approach of defenders. Almost 90% of UK organizations now employ AI and large language models to monitor network behavior, identify emerging threats, and automate previously time-consuming tasks. In many security operations centers, AI acts as a crucial force multiplier, enabling small teams to manage an increasing workload effectively.

Looking ahead, nearly half of organizations anticipate that AI will drive the majority of their cybersecurity spending in the coming year. This shift reflects a growing acknowledgment that human analysts alone cannot cope with the scale and speed of modern cyberattacks. Nevertheless, responsible deployment of AI-powered defenses is essential. Over-reliance without adequate human oversight can create blind spots and foster unwarranted confidence. Security teams need to ensure that AI tools are trained on high-quality data, rigorously tested, and regularly reviewed to mitigate risks associated with drift or bias.

AI is not just changing how defenses are structured; it is also broadening the scope of potential attacks. The rapid increase in machine identities and AI agents has led to a situation where non-human accounts now outnumber human users by a ratio of 100 to 1. Many of these machine identities possess elevated privileges yet operate with minimal governance. Weak credentials, shared secrets, and inconsistent lifecycle management present significant opportunities for attackers to exploit systems.

The phenomenon of shadow AI further complicates this landscape. Research indicates that over a third of employees admit to using unauthorized AI applications, often to automate tasks or generate content quickly. While these productivity gains are appealing, they come with considerable security risks. Unapproved tools can handle sensitive data without adequate protections, exposing organizations to data leaks, regulatory non-compliance, and reputational damage.

Implementing Effective Risk Management

Addressing these risks requires more than just technical controls. Organizations should develop comprehensive policies regarding acceptable AI use, educate staff on the dangers of circumventing security measures, and provide secure alternatives that meet business needs without introducing hidden vulnerabilities.

To secure AI-driven enterprises, identity security must be integrated at every layer of an organization’s digital strategy. This involves ensuring real-time visibility of all identities—human, machine, or AI agent—applying a least privilege approach consistently, and continuously monitoring for unusual access behaviors that could indicate a breach.

Forward-thinking organizations are already updating their access and identity management frameworks to accommodate the distinct demands of AI. This includes implementing just-in-time access for machine identities, monitoring privilege escalation, and treating all AI agents with the same scrutiny as human accounts.

As AI continues to offer considerable value to organizations that adopt it responsibly, the potential risks associated with inadequate identity security cannot be overlooked. Businesses that recognize that resilience is foundational for long-term growth will thrive. In an era where both enterprises and their adversaries are empowered by AI, one principle remains clear: securing AI begins and ends with securing identity.