SMB survival requires cybersecurity transformation with AI

Fast Company

17 hours ago

Cybersecurity is now one of the top three risks threatening small and medium-sized businesses (SMBs) in 2025, alongside inflation and economic concerns. Yet many SMBs remain unaware of the full scope of their vulnerability to modern cyberattacks.
With AI-powered automation, cybercriminals can attack thousands of SMBs at once, exploiting weak defenses and businesses without dedicated security teams or advanced AI technology. However, a concerning 60% of SMBs remain dangerously underprepared by believing large corporations are more likely targets or being convinced their business has no cyber vulnerabilities at all.
The cost of inaction due to misplaced confidence is devastating: nearly 55% say it would take less than $50,000 in financial losses from a cyberattack to force them out of business. One in five SMBs have declared bankruptcy or shut their doors permanently after a cyber incident.
Survival requires a shift in strategy. SMBs must take control by using the same advanced AI tools attackers rely on to fight back.
A NEW STRATEGY: 4 SIMPLE STEPS TO START
With the right strategies, SMBs can protect their data, minimize vulnerabilities, and transform cybersecurity from a cost into an asset. Here's how:
1. Know Your Data
Cybercriminals don't attack randomly. They target what's easiest and most profitable: customer payment data, financial records, employee credentials, and business-critical systems. SMBs need to know what data they have, where it's stored, and who has access.
Begin with data mapping. Inventory where your data lives—cloud platforms, servers, employee devices, and third-party tools. Identify what's stored, how sensitive it is, and who needs access.
From there:
Apply role-based access controls
Encrypt sensitive information
Use multi-factor authentication (MFA)
Back up critical data regularly
Train teams on basic security hygiene
These quick wins dramatically lower risk without blowing budget.
2. Take Care Of The Basics
Most cyberattacks aren't successful because of advanced hacking techniques. They succeed because of basic security gaps. Eighty percent of SMBs recognize their vulnerabilities, yet many continue to make basic mistakes. For instance:
23% use memorable passwords, like pet or family member names.
22% don't have cybersecurity measures for internet-connected devices like mobile phones.
18% don't require regular software updates, leaving known vulnerabilities unpatched.
16% never back up their data.
14% don't require MFA for staff.
These simple, low-cost steps immediately reduce an SMB's attack surface. MFA can prevent 99% of account takeover attacks. Regular software updates close security gaps cybercriminals actively scan for. And limiting administrator privileges—so only essential personnel can install new software or access sensitive systems—reduces the chance of malware spreading through the network.
3. Train Your Team
Technology only goes so far. Seventeen percent of SMBs admit they don't train their employees on cybersecurity best practices, even though human error remains the root cause of most breaches. Falling for phishing emails, mishandling sensitive data, or using unauthorized apps unwittingly opens the door to attackers.
Build a culture of security by:
Offering short, regular training sessions tailored to each role.
Teaching employees how to identify and report phishing and social engineering attempts.
Reinforcing password hygiene and safe device usage.
Employees can be your weakest link or your first line of defense. The difference is training.
4. Prepare For The Inevitable
Even the strongest security defenses can't stop every attack, but knowing how to respond can limit the damage. A cyber incident response plan doesn't need to be complex—just clear and actionable:
Document a step-by-step process for handling an attack: how to identify one, who to notify, how to contain damage, and how to restore operations.
Assign roles in advance so employees aren't scrambling to act.
Test response plans regularly through tabletop exercises or simulated scenarios.
More than half of SMBs (53%) experienced Wi-Fi or network disruptions in the past year. Others faced phishing attacks (48%) or website downtime (45%). These are common and costly, but with preparation, they don't have to be fatal.
HOW MSSPs UPLEVEL YOUR STRATEGY
Even with the best security mindset and preventative measures, most SMBs don't have the time, expertise, or resources to keep up. Seventy-four percent self-manage their cybersecurity or rely on a family member or friend.
That's where managed security service providers (MSSPs) come in. For SMBs that are stretched thin and can't afford full-time security professionals, MSSPs provide proactive monitoring, threat detection, and rapid response, thereby acting as an extension of SMBs' internal teams by working 24/7 to identify and mitigate risks before they turn into costly breaches.
But despite the clear need, only 15% of SMBs outsource to an MSSP. Offloading these responsibilities frees up valuable time and allows SMBs to focus on growth, rather than security.
AI: THE SMB EQUALIZER TO MAXIMIZE DEFENSE
Just as cybercriminals use AI to automate attacks and scale operations, SMBs can use AI to fight back. AI-powered security tools help SMBs detect threats faster, respond more effectively, and offload manual security tasks.
AI recognizes anomalies in real time. Unlike traditional security measures that rely on pre-programmed rules, AI continuously learns and adapts by flagging suspicious activity before attacks can escalate. For example, AI can detect an employee logging in from an unusual location or a sudden increase in file downloads—both signs of an impending breach. In fact, 55% of SMBs say AI will be most useful in identifying cybersecurity threats before they impact business operations.
AI also automates routine security processes. From identifying phishing texts and emails (49%) to automating software updates (26%), AI-driven security reduces the workload on small IT teams and ensures critical security measures aren't overlooked. Instead of manually sifting through endless security alerts, AI prioritizes real threats by helping SMBs respond quickly and efficiently.
SMBs that take a proactive approach by leveraging AI-powered security and expert support from MSSPs don't just reduce risk, they gain a strategic edge. In a landscape where 20% of SMBs won't survive a single attack, investing in cybersecurity isn't a luxury. It's a necessity.