AI and large language models have overtaken ransomware as the top cybersecurity concern for global security leaders, according to Arctic Wolf’s 2025 Trends Report. While most organizations continue to invest in endpoint protections and automated threat detection, challenges such as incomplete visibility, outdated incident response plans, and constrained budgets persist.
AI Emerges as a Dual Threat
In a striking reversal, artificial intelligence has emerged as the foremost concern among global security leaders as 29% now cite AI, LLMs, and privacy risks as their top cybersecurity issue, compared to 21% who still rank ransomware highest. This pivot reflects growing unease around both the weaponization of generative AI by threat actors and the readiness of enterprise defenses to adapt.
What’s complicating matters is that AI is also central to modern defense strategies. Organizations are rapidly adopting AI-powered threat detection, automated response tools, and predictive analytics to improve reaction time. But Arctic Wolf’s findings suggest this rush is happening unevenly, and sometimes at the expense of foundational controls. Only 40% of respondents using next-gen endpoint protection said they had full visibility and could maintain it.
The blurred line between offense and defense is breeding new risk. Security operations are increasingly dependent on technologies they only partially understand, while adversaries exploit the same tools to scale phishing, generate polymorphic malware, or manipulate employees through convincingly crafted social engineering campaigns.
Breaches Rise, So Does Disclosure
More than half (52%) of surveyed organizations confirmed experiencing a breach in the past year, up slightly from 48%, yet 97% of those incidents were disclosed, signaling a positive trend toward transparency and regulatory compliance. Still, the volume and scale of attacks remain high: 70% of companies faced a significant cyber incident in 2024, with malware and business email compromise among the most common vectors.
Despite this, incident response remains patchy. Arctic Wolf noted that many organizations still rely on outdated plans and ad hoc mitigation strategies, often struggling to keep pace with the speed and sophistication of today’s threat landscape. Encouragingly, a growing number of victims, particularly of ransomware, are turning to professional negotiators. Of the 76% who paid ransoms, 90% used intermediaries, reducing overall payouts in more than half of those cases.
Cybersecurity budgets continue to lag behind risk exposure. While tools are being adopted, such as AI-driven monitoring or endpoint controls, the operational execution isn’t always keeping up. Without complete coverage or real-time visibility, these defenses may offer a false sense of confidence.
AI Risk Demands Broader Operational Oversight
As artificial intelligence becomes both a tool and a target in cybersecurity, supply chain leaders must recognize its operational implications beyond the IT perimeter. The growing reliance on AI-driven platforms across sourcing, planning, and fulfillment introduces new points of vulnerability, particularly when third-party systems are involved. Strengthening resilience now requires cross-functional coordination: aligning cybersecurity protocols with supplier oversight, audit routines, and digital infrastructure governance.
