More than half of UK small businesses increased their cybersecurity spending last year, with 8% saying the increase was significant.
Unsurprisingly, it was the IT and communications industry that recorded the highest increase in spending, with 10% of firms making a sizable investment alongside 52% who reported a “slight” increase.
Other sectors reporting significantly increased cybersecurity spending included health and social care, and the transport and logistics industry.
Notably, only two-in-ten firms told Bionic that they’d experienced a cyber attack during 2024, at odds with official figures.
“In contrast to our research, the UK government statistics show 50% of businesses reported some kind of cyber attack in 2024, with the most common being basic phishing attacks,” said the Bionic’s Laura Court-Jones.
“This could indicate there is a lack of awareness around the types of cyber attacks small businesses could face. Something as simple as a malicious link in a phishing email could easily go missed by many.”
The spending increase comes amid a period of heightened threats for small businesses across the country. Repeated warnings over the risks faced by SMBs have been issued by security agencies and industry providers alike over the last 18 months.
Neglecting cybersecurity can cost small businesses dear, research shows. Earlier this year, analysis from Vodafone Business found that inadequate security measures mean that UK firms are losing a combined £3.4 billion a year.
A single attack costs a small business an average of £3,398, rising to £5,001 for businesses with 50 or more employees; and more than a quarter of SMBs said a single attack could put them out of business.
The top threats for small businesses recorded by Vodafone were phishing, ransomware, and Distributed Denial of Service (DDoS) attacks.
SMB AI investment brings new cybersecurity challenges
The study from Bionic also found small businesses are keen on ramping up investment in generative AI tools. A quarter of the business owners told the firm they were very likely to start using AI in their business this year, with fewer than one-in-five saying they were not at all likely to do so.
This increased focus on AI adoption among SMBs is creating additional cybersecurity and data protection challenges, however.
A quarter said they were worried about inaccuracy, with businesses fearing that AI tools might generate unreliable results.
More than two-in-ten were worried about gaps in the knowledge of their workers, while a similar number were concerned about the lack of regulation surrounding AI, saying they were waiting for clearer guidelines before fully committing to using AI.
“Privacy and security could also be an issue, as handling customer data through AI could increase the risk of breaches or misuse. Some business owners may fear that AI could reduce the personal touch that sets their business apart, especially in customer service,” said Les Roberts, senior content manager at Bionic.
“There may even be a simple resistance to change – adopting new technologies can be intimidating, particularly if the current processes are working well enough. These factors combined can make small business owners hesitant to embrace AI despite its potential benefits.”
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