The evolution demands heightened resilience from businesses against emerging risks.
Titled “Generative AI: Transforming the Cyber Landscape,” the report underscores cyber threats as among the most intricate and pressing risks facing national security and businesses presently. The shifting dynamics of this landscape already present numerous challenges.
The ascent of AI, notably unrestricted advanced GenAI models, promises to redefine the cyber domain by enhancing both offensive and defensive capabilities. As such, cyber insurance assumes a pivotal role in aiding businesses and society at large in comprehending and mitigating these evolving threats. Proactive measures by businesses and the insurance sector are essential to navigate potential alterations in the threat landscape.
Despite the advanced features of GenAI technologies and the application of Large Language Models (LLMs) in cybercrime, their tangible impacts on the cyber threat realm have remained minimal thus far. This is attributed to industry safety protocols, effective AI model governance, and barriers related to costs and hardware that deter widespread misuse by threat actors.
Nonetheless, the increasing accessibility of GenAI poses a rising threat, potentially empowering threat actors to exploit these tools maliciously, resulting in harm to individuals, assets, and both tangible and intangible properties.
GenAI’s influence on the cyber landscape is anticipated to escalate the frequency, severity, and diversity of smaller-scale cyber attacks over the next 12-24 months. However, this trend is expected to plateau as security measures and defensive technologies adapt to counterbalance their impacts.
Dr Kirsten Mitchell-Wallace, Director of Portfolio Risk Management, Lloyd’s said: “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.
“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 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.”
Lloyd’s continues to work with governments, regulators, security experts and insurers to understand and underwrite the risks associated with AI, partnering with industry, engaging policy makers, and supporting sustainable innovation.
