3.1 AI is reshaping risk, accelerating both offence and defence Developments in AI are reshaping multiple domains, including cybersecurity. Implemented well, these technologies can assist and support human operators in detecting, defending and responding to cyberthreats. However, they can also pose serious risks such as data leaks, cyberattacks and online harms if they malfunction, or are misused. Governments must take a forward-looking, practical and collaborative approach to developing and using emerging technologies safely, as their capabilities and risks continue to evolve. The risks transcend borders, and the challenge is to maximize AI’s benefits, including to strengthen our cyber resilience, while minimizing its risks. Josephine Teo, Minister for Digital Development and Information and Minister-in-Charge of Cybersecurity and Smart Nation Group, Singapore AI is anticipated to be the most significant driver of change in cybersecurity in the year ahead, according to 94% of survey respondents. AI is reshaping the cybersecurity landscape across three interconnected dimensions. First, the widespread integration of AI systems introduces an expanded attack surface, creating novel vulnerabilities that traditional controls were not designed to address. Second, defenders are harnessing AI to strengthen their cyber capabilities – augmenting detection, accelerating incident response and automating high-volume analytical tasks. Third, threat actors are leveraging AI to enhance the scale, speed, sophistication and precision of their attacks, driving a new generation of automated exploitation and targeted social engineering (see Section 3.3). Together, these dynamics illustrate the dual- use nature of AI, both as a force multiplier for defence and as a catalyst for attackers. As this technological competition intensifies, organizations are shifting from reactive to proactive security, while reassessing governance, validation and oversight at every stage of AI adoption. Impacts of AI on cybersecurity FIGURE 7 Cybersec urity capa bilities need to inno vate to protect the business; consequences of attac ks are tightly linke d to business processe s Next-ge neration cyber arms race driven by thr eat interest a nd potenti al for collatera l dam ageWider attack surface and cyber harms to enterprise New attack surface and pr opagation of risks acr oss businesses Enhanced cyber defence tools Better pr evention and attack detection, and mor e effective incident r esponseMore potent cyberattacks Toxicity of cyberspace increases, targeting of victims mor e effectiveImpacts of AI on cybersecurity New attack surface offers new targets and attack vectors, which will n eed to be defe nded Source: Artificial Intelligence and Cybersecurity: Balancing Risks and Rewards. (2025). World Economic Forum2 Global Cybersecurity Outlook 2026 18