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A concerning 73% of owners of small businesses reported cyberattacks in the previous year. Small and mid-size businesses (SMBs) are the target of approximately 43% of cyberattacks. What’s even more alarming is that only roughly 50% of SMBs have cyber insurance policies or coverage because it’s an additional cost that many cannot afford.

SMBs are more vulnerable since they lack the means to protect themselves effectively. Consequently, no one is “too small” for today’s cybercriminals. Nevertheless, even with constrained resources, SMBs may significantly strengthen their cybersecurity posture by combining efficient change management with artificial intelligence (AI), the most talked-about emergent technology available.

SMBs’ cybersecurity weakness: The pitfall of overvaluing compliance

Although it’s not always the case, many SMBs assume they are secure if they follow industry laws. Cybercriminals target different access points and data kinds during a breach, for instance, even though Payment Card Industry (PCI) compliance is a crucial tool to ensure the proper handling of credit card data and client information.

For this reason, small businesses must adhere to PCI compliance rules for protecting digital payments or risk fines from their payment processor. However, a yearly compliance action alone does not ensure a comprehensive adequate security posture.

SMBs typically lack the resources—time, manpower, and expertise—to develop, deploy, and manage their own cybersecurity capabilities. As a result, they tend to concentrate only on adhering to PCI compliance requirements rather than taking the essential actions to become more widely cybersecure. This is because a merchant’s digital environment may contain other areas that are open to cyberattacks if they choose to only implement PCI compliance in the card data environment.

SMBs need to be aware of numerous industry laws and best practices, including PCI Data Security Standard Version 4.0, which went into effect on March 31, 2024. Other frameworks that address general merchant cybersecurity for all industries and organizations, regardless of their size or level of cybersecurity skill, including the NIST Cybersecurity Framework and the FCC’s Cybersecurity Tip Sheet.

SMBs will have more work to do to maintain their cybersecurity and compliance posture because of hackers utilizing cutting-edge technology like artificial intelligence (AI) in addition to the growing use of mobile payments and contactless transactions. Sensitive consumer data was compromised by 39% of small firms in the past year, and more are sure to come given that cybercrime is predicted to cost the global economy $10.5 trillion by 2025. SMBs who don’t integrate their cybersecurity and compliance efforts run the danger of joining the 60% of small firms that shut down because of cyberattacks.

AI technology can be used by small firms to bridge this gap and lessen the strain of maintaining cyber resilience in the face of scarce resources.

AI: The key to uncovering hidden blind spots

AI is leveling the playing field for cyber resilience by assisting SMBs with limited funding and cyber knowledge in strengthening their security postures through:

Cutting through the clutter

What you cannot see is unassailable. To put it another way, 25% of workers at small businesses believe they lack the knowledge and resources necessary to recognize possible cyberthreats in the workplace. They lack the resources and knowledge to map out all digital assets at risk within a business, identify which vulnerabilities require patching, and determine which networks are most likely to be the next in line for attack. AI comes into play here.

Artificial Intelligence (AI) facilitates this process by giving small teams instant access to relevant information about vulnerabilities, possible security incidents, and remediation activities. This greatly expedites threat detection and response, enabling firms to remain ahead of the curve.

Though it’s not the sole tool, artificial intelligence (AI) is a potent one for SMBs, and its use will only increase with time. To provide a multi-layered strategy to identify cyber risks, AI solutions should expand upon the organization’s existing cyber tools (firewalls, endpoints, and vulnerability scanners that input security data to the AI model). The image of cyber danger becomes a high-resolution, color image when AI is used in conjunction with current cyber technologies.

Integrating compliance and cybersecurity measures

Due to PCI requirements and business needs, cybersecurity protection is becoming more necessary for SMBs in all sectors and regions. No longer can maintaining cardholder data security and preventing disruptions from cyberattacks be a “point-in-time” endeavor, as PCI and other compliance measures have historically been.

Businesses with little to no cybersecurity experience can put the necessary policies and procedures in place with the aid of industry best practices included in the NIST Cybersecurity Framework and FCC guidance, but these basic suggestions are insufficient to promote continuous cyber resilience.

Without requiring technical expertise or internal resources, AI technologies enable SMBs to quickly and effectively assess their cyber risk as part of the compliance process. AI solutions that integrate cybersecurity and compliance should be considered by SMBs. This will guarantee “always on” cyber defense in addition to adherence to industry rules and suggested baselines.

Eliminating the uncertainty

As generative AI (GenAI) chatbots advance, even non-technical staff of small and medium-sized businesses can more successfully establish and uphold cyber resilience and compliance with new industry requirements. Because every user has a different level of cybersecurity experience and different online and compliance security contexts, new GenAI chatbot capabilities can adjust the terminology, complexity, and level of detail of cyber events. This reduces the possibility of error by enabling everyone, regardless of skill level, to quickly identify their weaknesses and discover methods for mitigating risk.

Anticipating the future

Understanding where cyber threats are and how to best address each one necessitates a multi-layered strategy to SMB cyber risk management, comprising a combination of technology and process enhancements. Even though the dangers associated with cybersecurity and compliance are greater than ever, only 33% of SMBs have added new technology or processes to guarantee security in the last year. SMBs require assistance in the battle against cybercriminals, and AI is the co-pilot required to produce outcomes despite the leadership’s possible lack of experience and time.

AI isn’t just for big businesses; SMBs can also benefit from tools that help them prioritize which vulnerabilities to patch, recommend the best course of action for fixing those problems, and make sure they comply with crucial industry requirements like PCI. For SMBs, compliance and cybersecurity must become mission vital, or else they run the danger of being caught in the crossfire of cyberattacks.