UK small businesses face rising AI-driven cybersecurity threats

Small and medium-sized businesses (SMBs) in the UK are facing increasing cybersecurity threats, particularly from AI-powered tools used by hackers. According to the ESET 2026 SMB Cyber Risk Report, 49% of UK SMBs experienced a security incident in the past year, with 13% reporting multiple incidents.

Key vulnerabilities identified include phishing, unpatched software, weak passwords, and insufficient monitoring. The report highlights that the rise of AI-assisted attacks poses a growing challenge for these businesses, which often struggle with workforce skill gaps and keeping pace with rapid technological shifts.

Despite these risks, 55% of surveyed UK SMBs intend to increase their cybersecurity budgets over the next 12 months, focusing on cloud security and employee training and awareness.