Gen AI to radically impact cyber landscape – Lloyd's

Cyber insurance will be integral to managing evolving threat, report says

Gen AI to radically impact cyber landscape – Lloyd's


By Ryan Smith

The emergence of unrestricted generative AI models is set to have a profound impact on the cyber landscape, augmenting both threats and defensive capabilities, according to a new report from Lloyd’s.

The report, Generative AI: Transforming the cyber landscape, found that cyber was “one of the most complex and critical risks threatening national security and businesses today,” Lloyd’s said in a news release.

The report said that cyber insurance would be an integral part of helping businesses and society at large comprehend and manage the threats posed by generative AI.

“It is important that businesses and the insurance industry take proactive steps to manage the potential changes to the threat landscape,” Lloyd’s said.

Significant impacts of generative AI technology on the cyber threat landscape have been minimal thus far thanks to industry safety measures, the effectiveness of AI model governance and current barriers in hardware, the study found.

However, as generative AI and large language models become more accessible, they pose a growing risk. While 2023 was already a record-breaking year for ransomware attacks, the impact of generative AI on the cyber threat ecosystem is likely to increase the frequency and severity of smaller-scale cyberattacks, Lloyd’s said. That threat is expected to grow over the next 12 to 24 months, levelling off as security technologies catch up with threat actors.

“Lloyd’s has been exploring the complex and varied risks associated with AI since 2016 and its developments present both opportunities and risks for businesses and the insurance industry,” said Dr. Kirsten Mitchell-Wallace, director of portfolio risk management at Lloyd’s.

“When considering the threat landscape, we must stay responsive to these rapidly changing technologies, learn from them, and seek to make the most of the efficiencies they bring. Generative AI is not the first, and it won’t be the last, disruptive technology to impact the cyber threat landscape, so it is critical that business improve their risk mitigation, security and defence technologies, as well as seek appropriate risk transfer today, more than ever before.”

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