Five practical ways SMBs can strengthen cyber resilience in the age of AI

As AI has become more embedded into daily operations, it has opened up endless opportunities for businesses to improve productivity, automate activities and enable significant growth opportunities, particularly for SMBs. However, the rise and reliance of these AI-enabled tools also changed the cyber risk picture by making familiar threats faster, more convincing and easier to scale. A recent statement from the Canadian Centre for Cyber Security underscores this concern, noting that frontier artificial intelligence models can help threat actors find and exploit vulnerabilities much faster than before, increasing the likelihood of a successful attack. There are new risks around data exposure, misuse of AI tools and reduced visibility over how sensitive information is being handled. For SMBs, resilience depends on using these technologies safely and securely.

Recent research from Sage found that cyber security ranks among the top priorities for SMBs globally, with many planning to increase investment in this area over the next 12 months. Yet awareness and investment do not automatically translate into resilience. For many SMBs, the gap lies in turning intent into practical action and this gap is only getting wider with the rise of AI and, consequently, AI-enabled threats.

The good news is that improving cyber resilience does not always require significant investment or specialist expertise. Often, the biggest gains come with strengthening the basics and creating clear processes that can scale with the business.

Here are five practical areas SMBs should focus on:

1. Building cybersecurity into everyday practice

One of the clearest findings from the research is that, for many SMBs, cybersecurity does not always have a clear owner. It is often loosely defined and sits with wider IT personnel, which means important security checks may only happen when there is a problem. As AI-enabled threats become harder to spot and easier to scale, that reactive approach creates risk.

For SMBs, resilience starts with making cyber security someone's responsibility. That does not mean building a dedicated security team, which may not be realistic for many smaller businesses. It means knowing who owns key security decisions, checking that basic protections are working and having a simple plan for how the business will respond if something goes wrong. Regular reviews of access rights, software updates, backups and third-party apps can make a meaningful difference, especially as the business grows.

2. Getting more value out of existing tools

Most SMBs already have some core protections in place, such as email security, endpoint protection (antivirus), software updates and backups. Indeed, Sage research shows that in Canada, 86 per cent of SMBs use email security, 82 per cent carry out regular patching and data backups and 77 per cent have deployed endpoint detection. The issue is not always a lack of tools, but whether those tools are set up properly, kept up to date and checked regularly. Gaps can appear when settings are misconfigured, updates are missed, different tools overlap without working together, or backups have never been tested. These are the kinds of weaknesses attackers can exploit. 

Before buying new security products, SMBs should take stock of what is already in place. That means checking whether existing protections are configured correctly, confirming updates and patches are being applied, removing software which is no longer needed, and testing backup and recovery processes so there is confidence they will work when needed. For many smaller businesses, resilience improves when existing controls are used more effectively and consistently, helping to strengthen security while reducing unnecessary cost and operational effort. 

3. Investing in people as your first line of defence

AI helps attackers create more convincing phishing emails, fake messages and fraudulent content. For SMBs, employees are an important part of the defence and are often first to spot when something does not look right, whether it is an unusual payment request, a suspicious supplier email or unexpected activity in a system. However, a survey conducted for the Insurance Bureau of Canada found that only 45 per cent of Canadian small businesses have policies and training in place to help employees identify AI-generated scams.

Training does not need to be complex, but it should be practical and regular. Short awareness sessions, simple phishing exercises and clear onboarding guidance can help people recognize suspicious activity and know what to do next. Businesses should also make it clear how concerns should be reported and reinforce that early reporting is encouraged. In many cases, acting quickly can significantly reduce the impact of an incident and improve recovery times. 

4. Keeping closer watch over third-party apps and suppliers

SaaS applications, AI services and third-party technology providers are now deeply embedded in how many SMBs operate, underpinning core business activities from sales, finance and customer management to collaboration and service delivery. That makes third-party security increasingly important, particularly where suppliers have access to business systems, customer information or sensitive data. 

The challenge is that many businesses assess a vendor when they first sign up, but do not always revisit that decision as service, access requirements or security practices change over time.

A more effective approach is to keep third-party risk under regular review. Businesses should maintain a current list of the software, apps and suppliers they use, understand what data those services can access, and remove accounts or permissions that are no longer needed. Monitoring unauthorized apps, often referred to as "shadow IT", can also help identify where employees may be using tools outside approved channels. When choosing or renewing suppliers, SMBs should look beyond marketing claims and ask for practical evidence, such as independent security certifications, clear data handling terms, data residency information and commitments on how incidents will be managed.

5. Putting guardrails around AI adoption

While AI is opening up real opportunities for SMBs, it's also increasing the pace and sophistication of cyber threats. Many businesses are adopting AI faster than they can put the right safeguards in place, and more often they lack visibility into which AI tools are being used, how data is being shared and what controls are in place to protect sensitive information. This can increase the risk of sensitive data being exposed, employees using unapproved tools or businesses becoming reliant on AI systems without fully understanding how their data is handled.

The answer is not to slow down innovation, but to make sure AI is adopted safely. So rather than introducing complex security programs, businesses should start with practical guardrails, such as keeping a list of approved AI tools, setting clear rules on what information can and cannot be entered into AI systems, and regularly reviewing how those tools are being used across the business. Businesses should also consider how they would respond if data was exposed through an AI tool, assess how suppliers protect data in AI-enabled products and make sure AI adoption aligns with existing privacy, compliance and cyber security requirements. Done well, these guardrails can help SMBs use AI with confidence, reducing risk without holding back innovation.