AI-driven cyber attacks are on the rise, leaving risk leaders in the APAC region feeling ill-equipped to handle the challenges.

A recent study by Aon reveals that most risk leaders in the Asia-Pacific (APAC) region feel unprepared to tackle the increasing rates of artificial intelligence (AI)-driven cyber attacks. The 2025 Cyber Risk Report indicates a 29 per cent rise in cyber incident frequency in APAC over the past year, with a staggering 134 per cent increase over the last four years. The report highlights the emergence of sophisticated threats, such as AI-powered deception, social engineering, and deepfake attacks, resulting in a 233 per cent year-on-year surge in fraud-related cyber insurance claims. Furthermore, geographical isolation is no longer a safeguard for New Zealand organisations, as cyber threats now stem from a global landscape. Over the past 18 months, local entities have faced disruptions due to overseas technology failures, leading to business interruptions and data loss.

The report describes the interplay between technological innovation and risk as a “Faustian pact,” where increased efficiency comes with heightened vulnerability to external events. It notes that 63 per cent of suspected nation-state cyber operations in the past year originated in APAC, often targeting critical infrastructure and key industries. Among the 1,414 global cyber events analysed, 56 incidents garnered significant media attention, resulting in average shareholder value losses of 27 per cent for affected companies. A growing gap exists between the adoption of AI tools and the preparedness to manage associated risks, with 98 per cent of surveyed risk leaders feeling inadequately equipped. Despite 79 per cent of organisations using or planning to use AI, only 32 per cent maintain a formal inventory of these tools. The report also indicates that New Zealand’s cyber insurance market is evolving, with rates decreasing by approximately seven per cent in early 2025, prompting more organisations to reassess their cyber insurance needs.