Is AI Making Cyberattacks Worse for Small Businesses?

If you’ve been thinking, “Cybersecurity? That’s for the big guys, not me,” it’s time for a reality check. In 2025, small and mid-sized businesses (SMBs) are discovering the hard way that cybercriminals don’t care about company size — especially when AI makes their jobs way easier. According to the latest whitepaper by Vanson Bourne Research and Connectwise, The State of SMB Cybersecurity: Racing Against AI-Driven Cyberthreats, AI is supercharging cyberattacks, and many SMBs are dangerously underprepared.

SMBs Are Waking Up… Just in Time?

Let’s start with the silver lining: SMBs are finally realizing that cybersecurity actually matters.

But the numbers tell a worrisome story that many businesses may already be behind:

• 57% of SMBs now say cybersecurity is their organization’s top priority, up from 43% in 2024 — a 14-point jump in just one year.
• 58% spent more on cybersecurity in 2024 than originally planned, often scrambling budgets to cover gaps.
• 51% ranked protecting against cyberattacks among their top three priorities, ahead of growth (40%) and even customer retention (33%).

It’s interesting that when asked to rank priorities for the next two years, protecting against cyberattacks came out ahead of business growth and customer retention — a wake-up call for anyone still relying on the “cross your fingers and hope for the best” approach.

Translation: SMBs are finally treating cybersecurity like the business-critical issue it is… because ignoring it is no longer an option.

Is AI Making Hackers Smarter (and Scarier)?

Here’s where things get really interesting (and a little alarming). AI can be a game-changer for your team, helping tackle everyday tasks that slow us down (because let’s be honest, we’re all juggling twice our job description these days). But here’s the catch: the same AI that boosts productivity for you is also coming in clutch for cybercriminals. SMBs are noticing:

• 83% of SMBs say AI or GenAI increases the cybersecurity threat level.
• Yet only 51% have implemented security policies and practices for AI/GenAI.

Imagine a cybercriminal using AI to craft phishing emails that sound exactly like your CEO or generate malware that can morph its signature to evade your defenses. That’s no longer science fiction — it’s 2025. And 61% of SMBs are worried that a serious cyberattack could actually put them out of business. Yikes. What will they be capable of in 2026?

Trusting Your MSP? Maybe, but Buyer Beware

Many SMBs rely on managed service providers (MSPs) to help protect them. But trust is complicated:

• 58% now see increased security as a key benefit of using an MSP, up from 40% in 2024. Good news, right?
• The catch: 73% are not confident their MSP could defend them effectively in all cases.
• 32% would hold their MSP solely responsible if they were attacked, and 79% would even consider legal action.
• Nearly half (47%) would switch to a new MSP if a better cybersecurity solution was on the table.

The takeaway? SMBs want security support, but only if it actually works. And MSPs have to deliver, because failure could mean lost trust, lost business, or even lawsuits. The takeaway? Do your homework before you select an MSP. Not all are created equal.

Cybersecurity Isn’t Optional — It’s Survival

Here’s the blunt truth from the whitepaper: SMBs are underestimating their risk, leaving themselves dangerously exposed. Cybersecurity is a constantly evolving challenge, and when you throw AI into the mix, the possibilities — for both defenders and attackers — are endless.

Sure, AI can help you breeze through your daily tasks, but it won’t magically put on a cape and save Metropolis from cybercriminals. Attackers are already using AI to scale their attacks, while many businesses are still slow to adopt the right protections.

Consider these key numbers:

• 58% spent more on cybersecurity last year than expected — reactive, not proactive.
• 57% now rank cybersecurity as their top priority — a huge mindset shift in just 12 months.
• 51% plan to focus on AI-specific security over the next two years — still plenty of room for improvement.
• 61% fear a serious attack could put them out of business — for many SMBs, cybersecurity is now existential.

“Cybersecurity is no longer just IT’s problem; it’s a business survival strategy. The stats don’t lie — act now before AI-driven attacks knock on your door.”

What SMBs Can Do Right Now

So, what’s the takeaway for small and mid-sized businesses? Here are some practical steps:

• Start with policies for AI and remote work. Make sure your team knows how AI tools are used safely, and protect endpoints, networks, and data.
• Prioritize cybersecurity in the budget. Underestimating your risk can get expensive fast, as 58% of SMBs already learned.
• Work with trusted MSPs — but verify. Ask tough questions about AI security capabilities and incident response. Ask for references. Pose emergency scenarios.
• Educate your team. Phishing attacks, deepfakes, and social engineering are more convincing than ever. A trained team is your first line of defense.
• Have a recovery plan. Backups, incident response, and continuity plans aren’t optional anymore — they’re survival tools.

The Bottom Line

Yes, AI is making cyberattacks smarter, faster, and scarier. But here’s the good news: SMBs can fight back. The first step is simple — recognize the risk, make cybersecurity a top priority, and take action now.

Sharp Managed IT Services can help. We’ll work with you to educate your team, build a solid recovery plan, and keep your network protected with the latest security tools and practices. Don’t wait for a breach to find out how vulnerable you are — ask us how we can help safeguard your business today.