56% of business leaders fear AI attacks, but many lack coverage

• What's at stake: The financial survival of the 50% of small businesses currently operating without cyber insurance.
• Supporting data: Fifty-four percent of business leaders are worried about AI-generated phishing, deepfake or social engineering attacks.

AI-related cyber incidents are the second-greatest worry among business leaders, according to the 2026 Risk Index from the Travelers Institute, following a security breach or hackers as the top business concern. 
External threats are the most worrisome, with 56% of businesses concerned about attackers using AI to exploit system vulnerabilities and 54% worried about AI-generated phishing, deepfake or social engineering attacks.

More than half of business leaders, 55%, have expressed some or a great deal of worry about a data breach involving AI, and 47% of businesses worry either some or a great deal about the lack of visibility into how AI is being used across their organization. Despite these concerns, Travelers finds that 50% of small businesses, 24% of midsized businesses and 17% of large businesses still lack cyber insurance. 

"Businesses view cyber threats as a serious concern, and they're getting smarter and more prepared — investing in controls, building confidence and turning to their insurance carrier for guidance," said John Menefee, vice president and enterprise cyber lead at Travelers. "At the same time, the rapid rise of AI is creating opportunities for attackers just as companies are making progress on basic defenses. The message is clear: Organizations of all sizes should treat cyber threats, especially AI-related cyber risk, as a core business issue and take steps to strengthen defenses."

External threats aren't the only AI-related concern for business leaders. Just over half, 52%, of leaders are also concerned about their sensitive company data being retained to train external AI models, and 51% said they are worried about employees inputting sensitive information into unsanctioned AI tools. Half of business leaders also report concerns over the possibility of third-party vendors improperly using AI, and 48% of leaders are concerned about inaccurate output from AI tools leading to poor business decisions.

Even with these concerns in mind, only 59% of businesses have formal practices around the use of AI — even though 89% of respondents reported using AI on a day-to-day basis within their workforce.

"This 30-point gap really stands out, and it cuts both ways," Menefee said. "Companies are focused on what cybercriminals are doing with AI, and that concern is justified. However, companies should be equally focused on the risks created by their own AI use when the right practices and policies aren't in place."

Of those surveyed, 81% said that having proper cyber coverage is critical to the well-being of their company, and 92% of business leaders said they have confidence in insurance carriers as a source of cybersecurity guidance.

Introductory bullet points created by AI with editorial review.