A growing number of UK small and medium-sized businesses (SMBs) are taking cybersecurity more seriously, with over half increasing their cyber defenses in 2024, according to new research from Bionic.
However, the report also reveals a cautious approach to emerging technologies like artificial intelligence (AI), with many businesses citing concerns around accuracy, regulation, and data privacy.
IT and communications sector
8% of surveyed SMBs reported a significant increase in cybersecurity spending
According to Bionic’s findings, 8% of surveyed SMBs reported a significant increase in cybersecurity spending, while a further 52% indicated a slight increase.
The IT and communications sector recorded the highest overall rise, followed closely by businesses in health and social care, and transport and logistics.
Integrate AI tools
Despite these investments, just 20% of SMBs acknowledged experiencing a cyberattack in 2024. This contrasts sharply with official UK government figures, which suggest that 50 percent of all businesses were hit by a cyber incident, most commonly phishing attacks, over the same period.
In addition to cybersecurity, one in four SMBs said they are very likely to integrate AI tools into their operations in 2025, with fewer than one in five ruling it out entirely. However, businesses remain wary.
Lack of clear regulation
A number of respondents also expressed unease about data privacy and the potential erosion
Top concerns include potential inaccuracies in AI-generate outputs (25 percent), limited internal knowledge (22 per cent) and lack of clear regulation around AI technologies (22 percent). A number of respondents also expressed unease about data privacy and the potential erosion of the “personal touch” in customer service.
Richard Bovey, Chief of Data at AND Digital commented: “AI offers incredible opportunities for SMB’s to innovate, automate and become more competitive, but it must be approached responsibly."
Approach to AI adoption
Bovey added: "47 percent of business pioneers admit that their organizations fast and loose approach to AI adoption makes a data leak or privacy breach inevitable, according to our data loyalty research, showcasing a worrying attitude towards AI adoption.”
“Businesses must take an ethics AND innovation approach towards AI to create guardrails with clear internal policies, staff training and ethical AI practices to prevent the misuse of the technology. AI isn’t just about efficiency, it’s about trust, and for SMB’s trust is everything.”
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