AI Cuts vCISO Workload by 68% as Demand Skyrockets, New Report Finds

Once reserved for large enterprises, cybersecurity has become a top priority for businesses of all sizes. SMBs are driving surging demand for vCISO services to address growing threats and tightening regulations. And with AI, service providers can address these needs more efficiently and at scale.

These are some of the findings of the 2025 State of the vCISO Report, commissioned by Cynomi, the leading AI-powered vCISO platform. The report provides an in-depth look into the evolving vCISO market and the broader advanced cybersecurity services ecosystem.

Now in its third year, the report highlights how the SMB security services landscape is shifting fast. It shows how a once-supplementary service has now become foundational. It also explores the transformative role of AI in shaping cybersecurity delivery.

Below, we highlight key findings from the report, covering what SMBs are demanding, how MSPs and MSSPs are responding, and the growing potential of AI-powered vCISO services.

We highly recommend exploring the full report for deeper, actionable insights and a clear view of what lies ahead for security service providers.

3x Increase in vCISO Adoption among MSPs and MSSPs

As cyberattacks grow in frequency and sophistication and regulatory pressures intensify, SMBs are turning to vCISO services in record numbers. This surge in demand isn’t surprising: vCISO offerings provide a flexible, cost-effective way for organizations to access high-level cybersecurity expertise without the overhead of a full-time executive.

What is surprising is the pace of adoption. A striking 79% of providers now report high demand among SMBs for vCISO services, surpassing interest in other offerings like compliance readiness and cyber insurance support.

Service providers are moving quickly to keep up. In just one year, vCISO adoption among MSPs and MSSPs has skyrocketed by 319%, jumping from 21% in 2024 to 67% in 2025.

And the momentum isn’t slowing. 74% of remaining providers say they plan to launch vCISO services by year’s end.

vCISO Business Benefits Are Clear and Widespread

Meeting this rising demand presents a significant revenue opportunity for service providers. The report finds that MSPs and MSSPs who meet SMB needs and develop a vCISO offering, can see significant concrete business gains.

These include improved upsell of additional products and services (41%), increased margins (40%), a larger customer base (39%), the ability to access new prospects, and direct boost to recurring revenue.

Just as importantly, vCISO services deliver real security value to end customers. This transforms providers into trusted strategic, long-term business partners, not just temporary vendors.

Interestingly, these benefits appear to be widely recognized, even among providers who haven’t yet launched vCISO services. Many cite differentiation, upsell potential, and improved profitability as key motivators for future adoption.

This broad awareness aligns with the strong momentum expected among MSPs and MSSPs planning to introduce vCISO offerings later this year.

Barriers Remain, But They’re Operational, Not Strategic

What’s holding back MSPs and MSSPs from adopting vCISO services faster?

Among providers yet to launch vCISO offerings, the biggest hurdles are concerns about profitability or ROI (35%), high initial investment (33%), and lack of skilled cybersecurity personnel (32%)

However, these barriers are logistical, and not conceptual. The value of vCISO services is clear, and technology is increasingly positioned to help bridge these gaps (see below).

With the majority of non-adopters planning to launch by the end of 2025 or early 2026, it’s evident that a market-wide shift is already in motion.

AI Is Changing the vCISO Game

Unsurprisingly, and yet remarkably, the impact of AI has not skipped the vCISO ecosystem.

Today, 81% of MSPs and MSSPs already leverage AI or automation in their vCISO delivery, with another 15% planning to adopt within the next year.

AI is being used to automate, enhance and provide services like reporting automation and insights, remediation planning, compliance readiness and monitoring, risk and security assessments, task prioritization, and more.

The impact? Faster, more efficient and scalable deliveries. The average workload drop is 68%, with 42% of providers reporting an 81–100% reduction in manual workloads.

This shift enables teams to support more clients without compromising quality, proving just how dramatically AI is enhancing day-to-day operations and driving new levels of efficiency.

What’s Next? AI-Enabled vCISO Scale and Strategic Growth

With both current and planned AI adoption gaining momentum, the direction is clear: AI is becoming the standard for driving cybersecurity efficiency. As adoption accelerates, its impact on the quality, speed and scalability of vCISO services is set to grow exponentially, reshaping how cybersecurity is delivered.

Looking ahead, AI is no longer just the domain of early adopters. Rather, it’s becoming central to the growth roadmap for nearly every service provider in the market.

Ready to explore the full report? Download the full State of the vCISO 2025 Report.

Sponsored and written by Cynomi.