GenAI Set to heighten cyber risks, Lloyd’s warns

The impact on the cyber threat landscape has been limited so far due to safety mechanisms.

GenAI is expected to increase the frequency, severity, and diversity of smaller-scale cyber attacks in the next 12-24 months. However, a plateau is anticipated as security technologies catch up to counterbalance their impacts, Lloyd’s warned.

Cyrber risks are perceived as among the most complex and critical challenges for national security and businesses. The emergence of GenAI, particularly advanced models, is set to reshape the cyber landscape by enhancing both threat actor and defensive capabilities.

Lloyd’s report titled "Generative AI: Transforming the cyber landscape," the report underscores that cyber insurance plays a crucial role in helping businesses and society understand and manage these evolving threats. 

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Proactive measures are necessary to address potential changes in the threat landscape.

Despite the advanced capabilities of GenAI technologies, the impact on the cyber threat landscape has been limited so far due to safety mechanisms, effective AI model governance, and barriers like cost and hardware. 

However, as GenAI becomes more accessible, it poses increasing risks, potentially enabling threat actors to misuse the tools maliciously.

Lloyd’s continues to collaborate with governments, regulators, security experts, and insurers to understand and underwrite the risks associated with AI, supporting sustainable innovation and engaging policymakers.