Part 1 / 6 of the Future-Ready SMBs: Cybersecurity & AI Strategies for 2026 and Beyond series.

Cybersecurity has always been a moving target — but over the next few years, that target is set to accelerate dramatically. Artificial Intelligence (AI) is reshaping the threat landscape, and for small and medium-sized businesses (SMBs) across Sydney, the Central Coast and beyond, the impact will be profound. AI brings new tools for defenders, but it also supercharges attackers. Understanding both sides of that equation is now essential for every business leader.

AI: The Double-Edged Sword of Modern Cybersecurity

According to Crayon’s Cybersecurity to 2027 report, global cybersecurity investment will continue to surge as AI transforms how threats are created and countered. For SMBs, the promise and peril of AI are tightly intertwined. On one hand, cybercriminals are using machine learning to automate attacks, generate convincing phishing emails, and even mimic human voices in real-time scams. On the other, AI-powered defences are helping businesses detect anomalies faster and reduce response times from days to seconds.

This arms race isn’t theoretical — it’s already happening. The Australian Signals Directorate (ASD) Annual Cyber Threat Report 2024–25 noted a 23 percent increase in reported cyber incidents targeting Australian organisations last year, with SMBs disproportionately affected. The report highlights that AI-driven attacks — especially those leveraging automation and deepfakes — are now among the most rapidly growing threats.

Why SMBs Are in the Crosshairs

While large enterprises have entire teams dedicated to cyber defence, SMBs often lack the same depth of resources. Cybercriminals know this — and they’re adjusting their tactics accordingly. Phishing, business email compromise, and ransomware remain the top attack types, but AI is making them more convincing and harder to detect. In many cases, attackers use AI to personalise lures based on public data, increasing success rates dramatically.

For example, a conveyancing firm on the Central Coast might receive an email that looks like it’s from a trusted real-estate partner — complete with an AI-generated signature and language that mirrors previous correspondence. One mistaken click, and sensitive client data could be exposed or encrypted for ransom. That’s not a distant scenario; it’s today’s reality.

AI as a Force for Defence

Thankfully, AI isn’t just empowering the attackers. It’s also levelling the playing field for SMBs willing to invest wisely. AI-driven security tools can now monitor behaviour across networks, detect unusual patterns, and automatically isolate infected devices before damage spreads. Even smaller businesses can deploy affordable, cloud-based solutions that once required enterprise-grade infrastructure.

Tools like Microsoft Defender for Business and other AI-enhanced platforms, for instance, continuously learn from billions of global signals. They can detect new variants of malware and phishing tactics long before traditional antivirus tools catch up. Crayon’s research also emphasises the growing availability of managed security services that integrate AI analytics — ideal for SMBs who need protection without the complexity.

Local Context: What the ASD Report Means for Sydney and Central Coast Businesses

The ASD’s findings make it clear that New South Wales remains one of the most targeted regions in the country. The 2024–25 report highlights financial services, healthcare, and professional sectors — including law and conveyancing — as high-risk categories. The common denominator? Valuable client data and limited internal IT capacity.

For SMBs in our region, this means cybersecurity must now be treated as a core business function, not an IT afterthought. The ASD recommends a “defence-in-depth” approach — combining people, processes, and technology — and stresses the importance of regular audits to identify unseen gaps. That’s where strategic assessments come in.

Taking Action: From Awareness to Assessment

Knowing the risks is the first step; acting on them is where real resilience begins. Our Cybersecurity Audit helps local businesses identify vulnerabilities, review current protection measures, and align with ASD’s Essential Eight mitigation strategies. It’s an accessible way to benchmark your current readiness — and make sure your business is using AI as a shield, not leaving the door open to AI-powered attacks

Meanwhile, as AI becomes increasingly woven into every aspect of business operations, it’s equally important to understand how to use it safely and profitably. Our AI Profit & Growth Assessment is designed to help SMBs uncover opportunities for automation, efficiency, and innovation — while keeping security front of mind.

Stay Informed. Stay Secure. Stay Future-Ready.

AI isn’t slowing down, and neither are cybercriminals. The businesses that thrive through 2026 and beyond will be those that understand this evolving landscape — and prepare accordingly. By taking proactive steps now, you can protect your data, your reputation, and your growth.

If you’d like to dive deeper into how AI and cybersecurity intersect for SMBs, request a free copy of our new book</A> — it’s packed with practical insights to help you build a smarter, safer, and more profitable business.

Next week: Part 2 of our series, “AI in Action — Practical Steps to Strengthen Your Cyber Defences.”

Stay safe, and stay tuned!