The integration of artificial intelligence (AI) into business operations has become one of the most interesting trends in Australia’s corporate landscape. However, alongside the promise of innovation and productivity, a new report from CPA Australia warns that this digital shift is amplifying cybersecurity risks across the nation’s business community.
According to CPA Australia’s Business Technology Report 2025, which surveyed over 1,100 accounting and finance professionals across the Asia-Pacific region, 18% of Australian businesses experienced financial or time losses due to cyber incidents over the past year. The findings highlight a particularly vulnerable segment—small and medium enterprises (SMEs), which often lack the technical expertise and resources needed to mount effective cyber defenses.
Gavan Ord, CPA Australia’s business investment and international lead, cautioned that while the enthusiasm for AI adoption is welcome, it must be balanced by stronger digital protection. “Australian small businesses generally lag behind their Asian counterparts in technology adoption,” Ord explained. “The good news is that investment in AI is now accelerating. However, it is vital that this is matched by investment in cybersecurity in Australia.”
Rising AI Adoption, Rising Cyber Threats
The report revealed that 71% of Australian businesses plan to further integrate artificial intelligence into their operations by 2026. While this growing reliance on automation and data-driven systems is expected to boost productivity, it also broadens the potential attack surface for cybercriminals.
Ord warned that the misuse or poor management of AI tools could create new vulnerabilities. “Used correctly, AI can drive business growth and efficiency,” he said. “But it also provides criminals with more advanced methods to exploit weaknesses. The last thing a business needs is a major investment in technology, opening the door to hackers.”
Cybercriminals are increasingly leveraging AI themselves, using machine learning to design phishing campaigns, automate attacks, and evade detection. This evolution makes Australia’s cybersecurity efforts more crucial than ever, particularly for small businesses with limited security budgets.
No Business Is Immune
Even larger organizations, which typically have more advanced security frameworks, are not exempt from these risks. The CPA Australia report found that companies of all sizes reported losses due to cyber incidents, underlining the universality of the threat. Ord noted that “cybercriminals target weaknesses, not size,” meaning that both multinational corporations and local firms face exposure if they neglect proper protection.
The consequences of a breach can be devastating, ranging from direct financial loss and reputational damage to prolonged business disruptions. For smaller enterprises, even a single successful attack could threaten their survival.
Strengthening Defenses in the AI Era
In response to the findings, CPA Australia has urged all businesses to revisit and update their cybersecurity policies. The organisation recommends several key measures: maintaining strong firewalls and multi-factor authentication; educating employees on phishing and cyber hygiene; and seeking expert guidance when developing digital protection strategies.
Businesses are also encouraged to leverage resources such as the Australian Cyber Security Centre’s Essential Eight framework and government-supported training programs, which provide practical tools and education for strengthening cyber resilience.
Ord emphasized that prevention is far more cost-effective than recovery. “AI offers powerful insights, but it must be supported by human oversight and strong governance to mitigate risks,” he said. “Implementing robust cybersecurity measures is now as essential as adopting modern IT systems. Without them, businesses risk losing clients, revenue, and most importantly, their reputation.”
Conclusion
Australian businesses must balance innovation with protection. As organizations increasingly adopt artificial intelligence, the risks of cyberattacks also grow. CPA Australia’s latest report warns that AI’s benefits can quickly turn into vulnerabilities without strong digital protection.
Addressing this challenge, Cyble, a global leader in AI-powered threat intelligence, is strengthening Australia’s cybersecurity through predictive defense and real-time intelligence. With platforms like Cyble Blaze and Cyble Vision, Cyble enables enterprises to detect and neutralize threats before they strike, helping businesses innovate safely in a digital-first world.
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