FIN.

Lloyd’s report: generative AI and cyber risk

Lloyd’s has published a report on how the growth of generative AI could impact upon cyber risk. Whilst the report recognises the benefits generative AI can bring, it highlights that generative AI tools pose an increasing risk to the cyber landscape as they create opportunities for threat actors to use such tools in malicious ways, leading to harm for people, property, and tangible and intangible assets. For example, threat actors may be able to generate bespoke attack materials for many potential targets and their ability to evade attribution and achieve their desired outcomes is likely to be enhanced which could embolden them.

The report predicts that the frequency, severity and diversity of smaller scale cyber-attacks will increase over the next 1-2 years. This is particularly given that threat actor tooling is likely to outpace defensive tools created by the security industry.

Lloyd’s will continue to work with stakeholders to evaluate and address the potential threats. The report also encourages greater collaborate between governments, regulators and tech companies to better manage AI risks. Despite the risks, Lloyd’s also wants to continue working with insurers and start-ups to develop innovative products alongside policy guardrails that can support the development of generative AI tools whilst creating a more resilient society.

 

Lucy Hadrill