With industries under constant threat due to the growing severity and sophistication of cyberattacks, artificial intelligence (AI) technologies, such as natural language processing and machine learning, are playing a growing role in cybersecurity across industries, according to Grand View Research.
The adoption of AI in cybersecurity is accelerating as organisations seek solutions that integrate with their existing frameworks, aiming to minimise operational disruption and improve efficiency.
AI is being used to strengthen endpoint security, monitor networks, and manage access controls. These capabilities are becoming integral to layered defence strategies. Cloud-based AI security tools are also gaining traction, offering scalability for both small and large enterprises.
The report estimates the global AI in cybersecurity market at US$25.35 billion in 2024, with projections to reach US$93.75 billion by 2030. The market is expected to grow at a compound annual growth rate (CAGR) of 24.4% from 2025 to 2030.
According to the report, “The increasing frequency and complexity of cyber threats drive the market growth. Cybercriminals use advanced techniques, necessitating AI solutions capable of staying ahead of evolving attacks. AI-powered tools analyse vast amounts of data to detect hidden threats and respond swiftly to breaches.”
The report also notes that governments and enterprises are under pressure to protect critical infrastructure, which is leading to increased investment in AI-based security. These solutions are being used to counter ransomware, phishing, and advanced persistent threats, supporting the market’s continued expansion.
Earlier this year, the insurance industry experienced a series of high-profile cyberattacks attributed to the hacker group Scattered Spider. The group targeted major US carriers, including Erie Insurance and Philadelphia Insurance Companies, forcing both to shut down critical systems and initiate recovery protocols.
Philadelphia Insurance disconnected key systems after discovering unauthorised access, which affected its email, phone lines, and digital services. Erie Insurance, meanwhile, suspended digital services and processed claims via phone and local agents while recovery efforts continued. Both companies said they engaged federal authorities and outside cybersecurity experts to manage the incident and restore operations.
Scattered Spider is known for its use of social engineering tactics, often manipulating internal IT staff to bypass security controls, including multifactor authentication. The group’s approach involves leveraging information from previous breaches to refine its methods, making each subsequent attack more effective.
This pattern of behaviour has been observed in other sectors as well, such as casinos and cloud service providers, raising concerns about systemic risk exposure across industries.
The fallout from these cyber incidents extends beyond technical recovery. Erie Insurance is currently facing a proposed class-action lawsuit in federal court, with plaintiffs alleging that customer data was accessed and possibly distributed on the dark web due to alleged security lapses.
The legal action seeks damages, legal fees, and credit monitoring for affected individuals. Even though there is no confirmed data exfiltration, the case underscores the legal risks insurers face when customer-facing operations are disrupted by cyberattacks.
In response, rating agencies are closely monitoring the impact of such cyber events on insurers’ financial strength. Both Erie and Philadelphia Insurance’s parent company, Tokio Marine, hold high financial strength ratings. However, widespread cyber incidents have previously led to re-evaluations of ratings when operational capabilities are impaired or legal risks increase.
Fraud detection and anti-fraud applications represent a significant portion of the AI in cybersecurity market. Grand View Research notes that these solutions are “critical in combating financial and identity-related crimes.”
As cybercriminals develop new methods, demand for advanced anti-fraud technologies remains strong, supporting their continued prominence in the cybersecurity sector.
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