Australian small businesses seek help against AI cyber risks

Small businesses in Australia are calling for increased government support to combat rising cybercrime and scams driven by artificial intelligence. Ahead of a parliamentary inquiry into the cybersecurity readiness of small and medium enterprises, the Council of Small Business Organisations Australia (COSBOA) has urged the government to restore funding for previously axed cybersecurity training programs.

Small businesses face two primary AI-related risks: increased vulnerability to sophisticated scams and the unsafe use of generative AI tools. Approximately 81 per cent of businesses believe cybercriminals are becoming more advanced due to AI, while 32 per cent admit to sharing sensitive business or customer information with generative AI tools.

COSBOA chief executive Skye Cappuccio has requested urgent, plain-language guidance on safe AI adoption and called for the reinstatement of programs like the Cyber Wardens initiative. Business Chamber Queensland has also expressed concerns, noting that AI-enabled scams are the fastest-growing threat to its members.

Financial impacts are significant; the Australian Competition and Consumer Commission reported that Australians lost nearly $260 million to scams in the first nine months of 2025. Additionally, the Australian Signals Directorate noted that the average cost of a cyber incident rose 14 per cent to $56,600 in the 2024/25 period.