UK small and medium-sized businesses (SMBs) have significantly stepped up their cybersecurity efforts, with over half increasing their spending in the past year. According to a recent study by Bionic, 8% reported a notable rise in cybersecurity investment, particularly in the IT and communications sector, where 10% made major financial commitments. Health, social care, and transport industries also recorded substantial increases.

Despite these efforts, only 20% of businesses acknowledged experiencing a cyberattack in 2024—far lower than the 50% reported in government figures. Laura Court-Jones of Bionic believes this gap suggests many SMBs may lack awareness about common threats like phishing.

The surge in security spending reflects mounting pressure on small businesses to address cyber risks. With warnings from industry bodies growing louder over the past 18 months, the urgency to act has never been greater. Research from Vodafone Business earlier this year revealed UK companies are losing an estimated £3.4 billion annually due to poor cybersecurity. A single breach costs an average of £3,398 for small firms, jumping to over £5,000 for companies with 50+ employees. Alarmingly, more than 25% of SMBs said one serious attack could shut their business down entirely. Top threats include phishing, ransomware, and DDoS attacks.

Alongside this, Bionic’s findings show a rising interest in generative AI among SMBs. One in four business owners expressed strong intent to integrate AI tools in 2025. However, this trend also brings fresh cybersecurity challenges. Business leaders voiced concerns about AI’s accuracy, employee knowledge gaps, and unclear regulations. Some also feared AI could compromise customer privacy or erode the personal touch that defines their brand.

“AI adoption can be daunting,” said Les Roberts, senior content manager at Bionic. “For many, it’s not just about security—it’s about trust, regulation, and preserving what makes their business unique.”

As SMBs juggle innovation with caution, the need for robust cybersecurity and clearer AI guidelines becomes increasingly urgent.

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News Source: ITPro.com