Businesses cry out for help to fight off AI cyber risk

Small businesses are urgently seeking government assistance to combat the growing threats posed by artificial intelligence-fueled scams and cybercrime, as revealed in a submission to a parliamentary inquiry. The Council of Small Business Organisations Australia (COSBOA) is urging the government to reinstate funding for an abandoned cyber security training program, citing the urgent need for education and guidance.

Ahead of the inquiry, COSBOA highlighted two primary concerns: the increasing sophistication of cybercriminals leveraging AI and the prevalence of unsafe AI usage within small businesses. An overwhelming 81% of businesses believe that AI has made cybercriminals more cunning, while 32% admit to sharing sensitive business or customer data with generative AI tools.

COSBOA's CEO, Skye Cappuccio, called for plain-language guidance on safe AI adoption, emphasizing the critical need for education due to small businesses' limited expertise compared to larger corporations. The Australian Competition and Consumer Commission reported that Australians lost approximately $260 million to scams in the first nine months of 2025, with small businesses facing rising costs as well.

The average cost of a cyber incident surged by 14% to $56,600 in 2024/25, according to the Australian Signals Directorate. Business Chamber Queensland, which will also testify before the inquiry, echoed COSBOA's concerns, stating that AI-enabled scams are the fastest-growing threats facing small businesses.

Ms. Cappuccio urged the government to replace the now-defunct Cyber Wardens program, which provided free online cyber security training to small businesses until funding was cut in the latest federal budget. COSBOA urged the committee to recommend continued investment in small business-specific training and guidance, emphasizing the lack of tailored guidance for small businesses based on sector, size, or digital maturity.