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AI reshapes the future of cybersecurity

12 May 2025

 

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In the fast-evolving space of cyber threats and cybersecurity, artificial intelligence (AI) is emerging as a force multiplier that raises both the scale and seriousness of cyber threats while equally enabling ever-greater sophistication in the tools and solutions used to combat such threats.

In January, the UAE Cyber Security Council reported that cyberattacks targeting strategic sectors in the country had reached a count of more than 200,000 incidents daily, with many of the attacks coming from ‘persistent threat groups’ such as the notorious ‘BlackCat’ cyber gang.

The threats are diverse, targeting everything from credit card transactions to identity verification processes, but the most common threat in 2024 was ‘phishing’ – cyberattacks using exploits in information technology (IT) and communications systems to lure individuals into either divulging sensitive information or accidentally providing a route for malware to enter their IT systems.

AI-powered arms race

Speaking to MEED, Daumantas Grigaravicius, head of Middle East at Netherlands-based payments solutions provider Adyen, explains that the days of crude ‘Nigerian prince’ scams are long gone and that “attackers now use AI to create flawless, personalised phishing emails and fake customer service chats, making scams nearly impossible to spot”.

He highlights how in one serious incident in recent years in the UAE, “a group of fraudsters used deepfake audio and forged emails to impersonate a company director, tricking an employee into approving a $35m transfer for a fake acquisition”.

Today, AI can make such scams appear “shockingly convincing”, and Grigaravicius advises that the best practice for businesses should be to both “verify financial requests via multiple channels and use AI tools to detect fraudulent activity”.

The UAE reported that phishing scams accounted for 61% of the reported cyber security incidents in the country last year, and AI is increasingly being used to support phishing and ransomware attacks through social engineering tools, deepfake media and AI-enhanced malware.

At any given time, AI-powered attack bots are also out there on the internet, “hacking accounts, testing stolen passwords, and scraping personal data at massive scale” to probe for weaknesses.

Emerging AI-powered cyber threats are, in turn, prompting the development of a whole new generation of AI-powered cybersecurity tools to counter them.

Grigaravicius notes how AI-powered fraud detection systems can now flag unusual patterns in real time, while AI-powered security software can “fight fire with fire […] adapting as fast as the attackers do, backed by strong multi-factor authentication to block them at the source”.

The result is an AI-driven arms race that is generating a dizzying array of both threats and solutions, but one that businesses must master if they are to safeguard their digital services and assets.

By upgrading infrastructure, enforcing better security and training more experts, businesses can stay ahead of evolving cyber risks

Addressing infrastructure gaps

While some cybersecurity weaknesses spring from a basic lack of awareness or the nature of the rising threats, other obstacles include institutional barriers, a lack of investment and talent gaps.

In the 2024 Kyndryl Readiness Report, 43% of UAE and Saudi business leaders admitted their IT infrastructure was not future-ready, while the 2025 UAE Cybersecurity Report found that security misconfigurations caused 27% of incidents. Grigaravicius adds that “many companies lack multi-factor authentication, rely on manual processes, and fail to detect threats promptly”.

However, there are positive signs. Grigaravicius notes that UAE businesses are fighting back by retiring legacy systems, introducing zero-trust security models and multi-factor authentication, and “investing more in AI-powered security tools to combat AI-driven fraud”. The UAE government is also “expanding data protection laws and drafting stricter AI governance to close legal gaps”.

Cyber threats are a major concern for governments, with the UAE Cyber Security Council reporting that 30% of attacks in 2024 were directed at government targets. Acknowledging the rise in cyber threats, the UAE’s Telecommunications and Digital Government Regulatory Authority (TDRA) has implemented a dedicated strategy of proactive measures to enhance its cybersecurity framework.

Across the GCC, the sheer diversity of transaction systems and cybersecurity platforms can also be a source of security gaps, with the lack of cross-border integration making “fraud detection and data flow more vulnerable”, notes Grigaravicius.

With each country having its own payment networks, security frameworks and regulations, cross-border protection becomes harder – the fragmentation creating inconsistencies and gaps in the cyber defences that cybercriminals can exploit.

In 2021, the GCC established the Arabian Gulf System for Financial Automated Quick Payment Transfer (Afaq), a Real Time Gross Settlement System (RTGS) system with a view to streamlining the $2tn in cross-border transactions still handled by legacy banking networks in the region.

As of 2024, Bahrain, Kuwait, Oman, Saudi Arabia and the UAE had all implemented the framework, and since 2022, a GCC Cybersecurity Ministerial Committee has regularly convened to align cyber defences and ensure that businesses and governments are sharing real-time cyber threat intelligence.

On top of cyberattacks that exploit human error and weakenesses in existing infrastructure or gaps in regulations, a shortage of cybersecurity talent can also leave organisations vulnerable.

Nurturing cybersecurity talent is therefore a must – and this is a point not lost on GCC governments. The UAE, for instance, has taken productive steps by developing tech-focused visa schemes, cyber academies and AI talent programmes.

The region’s trajectory is more generally positive, adds Grigaravicius, who says that while “AI threats are getting smarter […] so are the region’s defences. By upgrading infrastructure, enforcing better security and training more experts, businesses can stay ahead of evolving cyber risks”.

Ongoing adaptation is a must, however, and in one way or another, all regional organisations and institutions will have to rise to the cyber challenge. As Grigaravicius notes: “AI is here to stay, for better or worse. The key is to stay ahead, stay sceptical and use AI smarter than the criminals do.”

See also: Bridging the first-party data divide

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John Bambridge

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