Years of conducting security assessments and undertaking penetration testing have revealed that most organisations are struggling to identify, let alone respond to, cyber attacks. The sheer volume of security data they must manage, often millions or even billions of disconnected logs daily, causes security teams to inevitably miss critical early warning signs: the ‘needles in the haystack’. This often allows attackers to gain credentials and access, making their eventual removal an immensely costly and time-consuming process.

Alarmingly, assessments have shown that threat actors can often achieve this deep level of infiltration in just a matter of hours. Introducing novel, AI-enabled hacking tools further magnifies the problem, enabling adversaries to rapidly compromise a vast number of systems. This harsh reality means red teams routinely operate undetected in client environments for days or weeks — a chilling prospect.

Australian businesses are facing an unprecedented surge in cyberthreats. The Australian Cyber Security Centre (ACSC) reported a staggering 94,000 cybercrime reports in the financial year 2023, a 20% increase from the previous year. More alarmingly, the average cost of a data breach reached US$4.88 million in 2024 — a 10% increase over last year and the highest total ever, according to IBM’s Cost of a Data Breach Report 2024.

Despite this growing threat, the cyber maturity of many Australian businesses remains concerningly low. A 2023 ASIC survey found that 58% of Australian organisations had limited or no capability to protect confidential information adequately. This gap between threat level and preparedness leaves countless businesses vulnerable to attacks that could potentially cripple their operations and damage their reputations.

AI is our friend

Enter artificial intelligence: a powerful ally in the fight against cyberthreats. By leveraging AI technologies, Australian businesses can significantly enhance their cybersecurity resilience.

Below are five key ways AI can bolster our defences.

1. Advanced threat detection

AI-powered systems can analyse vast amounts of data in real time, identifying patterns and anomalies that might indicate a cyber attack.

Unlike traditional rule-based systems, AI can adapt to new threats, learning from each attempted breach to improve its detection capabilities. This proactive approach can help businesses stay one step ahead of cybercriminals.

2. Automated incident response

When a threat is detected, every second counts. AI can automate the initial response to cyber-incidents, isolating affected systems and initiating countermeasures before human analysts even have time to react.

This rapid response can significantly limit the damage of an attack and reduce downtime.

3. Predictive risk analysis

By analysing historical data and current trends, AI can predict potential vulnerabilities and future attack vectors.

This foresight allows businesses to proactively strengthen their defences where they’re most likely to be needed, rather than constantly playing catch-up with cybercriminals.

4. Enhanced phishing detection

Phishing remains one of the most common entry points for cyber attacks. AI can analyse emails and websites at a scale and speed impossible for humans, identifying subtle indicators of phishing attempts that might otherwise slip through. This can dramatically reduce the risk of human error leading to a breach.

5. Continuous security posture assessment

AI can continuously monitor the entire IT infrastructure, assessing the security posture in real time. This ongoing evaluation can identify misconfigurations, unpatched vulnerabilities and other weaknesses before they can be exploited, ensuring that security measures remain effective as the threat landscape evolves.

AI in cybersecurity: a paradigm shift

The integration of AI into cybersecurity strategies isn’t just a technological upgrade — it’s a paradigm shift in how we approach digital security. By augmenting human expertise with AI’s processing power and learning capabilities, we can create a more robust, responsive and resilient cyber defence.

However, it’s crucial to note that AI is not a silver bullet. Its effectiveness depends on proper implementation, ongoing maintenance, and integration with broader security practices. Australian businesses must invest not only in AI technologies but also in the skills and knowledge needed to leverage these tools effectively.

By Daniel Keys, Head of Strategy – Automation and AI, xAmplify

This article was first published by Technology Decisions