AI Adoption Outpaces Risk Management in Small and Mid-Market Businesses — Nationwide Building Society

Event summary

60% of business owners report employees using public AI tools for work, but only 36% have written policies governing their use.
31% of small and mid-market businesses have been targeted by generative-AI scams or fraud attempts in the past year.
Only 35% of businesses have an up-to-date incident response plan.
82% of business owners say they need more information and resources to protect against AI-enabled cyberattacks.

The big picture

The Nationwide survey highlights a critical disconnect between the rapid adoption of AI tools and the implementation of risk management frameworks. As AI becomes integral to business operations, the lack of governance and preparedness for AI-enabled cyber threats poses significant operational and financial risks. This trend underscores the need for businesses to prioritize cybersecurity and AI policy development to mitigate potential vulnerabilities.

What we're watching

Policy Gaps: How the lack of formal AI usage policies will affect operational risks and compliance for small and mid-market businesses.
Cybersecurity Preparedness: Whether businesses can keep pace with the evolving sophistication of AI-enabled cyberattacks.
Regulatory Scrutiny: The pace at which regulators will mandate stricter AI usage guidelines and cybersecurity measures.