Written by Andrew Grgic (Nexia Edwards Marshall, Adelaide)
12 November 2026

AI and cybersecurity: The new risks every business should understand

Estimated Reading Time: 3 min

Understanding the emerging risks that come with AI

As AI becomes more accessible, cybercriminals are using it too. For businesses, this means AI is creating both opportunities and new risks. Understanding both is essential to protecting people, data and reputation.

Phishing attacks are becoming harder to spot

Suspicious emails once contained obvious warning signs, including poor grammar, unusual wording or inconsistent formatting. AI can now be used to produce messages that are polished, personalised and businesslike.

Employees therefore need to look beyond presentation. Unexpected requests, unusual payment instructions, fake links and attempts to create urgency still require careful checking, even when the message appears credible.

Four AI security risks to understand

1. Data poisoning

Information used to train or improve an AI system is deliberately corrupted, potentially leading to unreliable recommendations or decisions.

2. Prompt manipulation

Carefully worded instructions are used to influence an AI system, bypass safeguards or make it behave in an unintended way.

3. Model theft

An attacker attempts to copy an AI model, extract valuable information or gain access to intellectual property and business logic.

4. Supply chain vulnerabilities

Weaknesses in third-party software, plug-ins, data sources or cloud services create risk within the broader AI environment.

AI should be managed as a business and technology risk, not simply introduced as another productivity tool. A practical governance approach should consider:

  • Which AI platforms are approved for business use
  • What information can and cannot be entered
  • How privacy, confidentiality and security obligations will be addressed
  • Who is responsible for reviewing outputs and decisions
  • What training employees need
  • How usage, incidents and controls will be monitored

Clear governance does not need to stop innovation. It gives people the confidence and boundaries to use AI responsibly.

Balancing innovation with security

AI adoption does not need to come at the expense of security. Appropriate governance, education and controls can support innovation while reducing exposure to emerging risks.

Do you know how AI is affecting your cyber risk profile?

As AI tools become more common, organisations need clear policies, governance frameworks and security controls to protect sensitive information and reduce risk.

Whether you are already using AI or just beginning, we can help you consider the risks, establish practical safeguards and develop an approach that supports both innovation and security.

Talk to our experts

Contact your trusted Nexia Advisor to discuss how to make the most of AI in your organisation.

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