“AI has always been a double-edged sword. While it offers enormous promise, the risks are evolving just as fast as the technology itself,” Chris Newton-Smith, CEO of IO said.
Organisations are under threat from weaponised AI, as about a quarter of firms in the UK and US (26%) have fallen victim to AI data poisoning in just the past year.
This means that hackers have corrupted the data that trains AI systems, planting hidden backdoors, sabotaging performance, or manipulating outcomes to their advantage.
Consequences from this are far-reaching, and poisoned models can quietly undermine fraud detection, weaken cyber defences, and open the door to large-scale attacks, putting both businesses and the public at risk.
This is all according to the IO State of Information Security Report, conducted among 3,001 cybersecurity and information security managers in the UK and USA, which found that 20% of organisation also reported experiencing deepfake or cloning incidents in the last 12 months.
In line with this, 28% of respondents highlight deepfake impersonation in virtual meetings as a growing threat for the next 12 months, showing how AI is increasingly being weaponised to target people directly and undermine trust in everyday business interactions.
Beyond deepfakes, AI-generated misinformation and disinformation tops the list of emerging threats for the next 12 months, cited by 42% of security professionals concerned about scams and reputational harm.
Generative AI-driven phishing (38%) and shadow AI misuse are also on the rise, with more than a third (37%) of respondents reporting that employees use generative AI tools without permission or guidance, creating risks of data leaks, compliance breaches, and reputational damage.
Shadow IT in general – downloading or accessing unapproved software or services – is already an issue for 40% of organisations, and generative AI is exacerbating the problem, especially when it is used without human oversight.
Forty per cent of those who are currently facing challenges in information security cited tasks being completed by AI without human compliance checks as a key challenge. If businesses are not fast enough to address this problem, employees may well continue to find insecure workarounds and shortcuts, putting sensitive data at risk.
“AI has always been a double-edged sword. While it offers enormous promise, the risks are evolving just as fast as the technology itself,” Chris Newton-Smith, CEO of IO said.
“Too many organisations rushed in and are now paying the price. Data poisoning attacks, for example, don’t just undermine technical systems, but they threaten the integrity of the services we rely on. Add shadow AI to the mix, and it’s clear we need stronger governance to protect both businesses and the public.”
AI adoption has surged, and more than half of organisations (54%) admit they deployed the technology too quickly and are now struggling to scale it back or implement it more responsibly.
In line with this, 39% of all respondents cited securing AI and machine learning technologies as a top challenge they are currently facing, up sharply from 9% last year. Meanwhile, 52% state that AI and machine learning are hindering their security efforts.
Although the statistics show that AI may not yet be on the side of the defender, encouragingly, 79% of UK and US organisations are using AI, machine learning, or blockchain for security, up from just 27% in 2024.
A further 96% have plans to invest in GenAI-powered threat detection and defence, 94% will roll out deepfake detection and validation tools, and 95% are committing to AI governance and policy enforcement in the year ahead.
Newton-Smith added: “The UK’s National Cyber Security Centre has already warned that AI will almost certainly make cyberattacks more effective over the next two years, and our research shows businesses need to act now. Many are already strengthening resilience, and by adopting frameworks like ISO 42001, organisations can innovate responsibly, protect customers, recover faster, and clearly communicate their defences if an attack occurs.”
