UK C-suite cyber confidence concerns

BY Richard Summerfield

Despite recent growth in the number of recorded data breaches, senior management at a number of UK companies believe that their cyber security provisions are above average – a sign that some UK firms may be overconfident in their defences, according to the ‘United Kingdom – Views from the C-Suite Survey 2018’ report released by FICO.

Executives at three out of four UK firms believe that their company is better prepared than its competitors. Among UK industries, financial services firms were the most confident of all, with 55 percent of respondents saying their organisation is a top performer, and 41 believe that their defences are above average. Forty-two percent of telecommunications providers believe that their firm is a top performer. The least confident executives were in the retail and e-commerce sectors, with 38 percent of respondents saying that their firm is a top performer, and only 19 percent rating it as above average.

This overconfidence among UK executives is particularly jarring as only 36 percent of organisations are carrying out regular cyber security risk assessments.

“These numbers suggest that many firms just don’t understand how they compare to their competitors, and that could lead to a lack of investment,” said Steve Hadaway, FICO’s general manager for Europe, the Middle East and Africa.

The UK is not alone in its overconfidence, however. Firms from all eight jurisdictions surveyed, including the US, believe they are well placed to resist a cyber attack. Canadians were more likely to rate their firm a top performer for cyber security.

Ovum conducted the survey for FICO through telephone interviews with 500 senior executives, mostly from the IT function, in businesses from the UK, the US, Canada, Brazil, Mexico, Germany, India, Finland, Norway, Sweden and South Africa. Respondents represented firms in the financial services, telecommunications, retail and e-commerce and power and utilities sectors.

“IT leaders have greater funding than ever to protect organisations from the continuously evolving threat landscape and meet complex compliance demands,” said Maxine Holt, research director at Ovum. “These same IT leaders are undoubtedly keen to believe that the money being spent provides their organisation with a better security posture than any other – but the rapid pace of investment, often in point solutions, rarely takes an organisation-wide view of security.”

Report: United Kingdom – Views from the C-Suite Survey 2018

CEO ‘disconnect’ a cyber concern

BY Richard Summerfield

Though cyber security is one of the biggest issues of our time, a misalignment between CEOs and technical officers, including CIOs, CTOs and CISOs, is weakening many organisations’ cyber security postures, according to a new report from Centrify titled ‘CEO Disconnect is Weakening Cybersecurity’.

The report, which saw over 800 executives surveyed by Centrify and Dow Jones Customer Intelligence, suggests that discord among C-suite leaders is leaving companies increasingly vulnerable to attack. The report claims that “the CEO response to cybersecurity is misaligned with reality”.

Sixty-two percent of CEOs cite malware as the primary threat to cyber security, compared to only 35 percent of technical officers. Only 8 percent of all executives stated that anti-malware endpoint security would have prevented the “significant breaches with serious consequences” that they experienced. Technical officers believe that identity breaches – including privileged user identity attacks and default, stolen or weak passwords – are the largest threat companies face, not malware.

Poor investment decisions made by CEOs – 60 percent of CEOs are investing the most in malware prevention and 93 percent indicate they already feel ‘well-prepared’ for malware risk – and poor communication between CEOs and technical officers are further cause for concern. Eighty-one percent of CEOs believe that they are most accountable for their company’s cyber security strategy, while just 16 percent of technical officers agree. Seventy-eight percent of technical officers believe that they are most accountable for the company’s strategy.

“While the vast majority of CEOs view themselves as the primary owners of their cybersecurity strategies, this report makes a strong argument that companies need to listen more closely to their Technical Officers,” said Tom Kemp, chief executive of Centrify. "It’s clear that the status quo isn’t working. Business leaders need to rethink security with a Zero Trust Security approach that verifies every user, validates their devices, and limits access and privilege.”

To bridge the gap between CEOs and technical officers, the report suggests that all parties must share their perspectives on the issues surrounding cyber security, but ultimately CEOs must alter their understanding of the threats they face. While malware is an issue, CEOs must change their mindsets, realign their cyber security spending and focus more heavily on the importance on combating identity breaches.

Report: CEO Disconnect is Weakening Cybersecurity

AI fears abound

BY Richard Summerfield

Artificial intelligence (AI) and machine learning have the potential to revolutionise many aspects of our professional and personal lives. In the decades to come, the potential benefits to be gained from embracing technology solutions will be remarkable. That said, the negative impact of AI and machine learning is widely debated, and it may have unintended consequences.

The risk of immoral, criminal or malicious utilisation of AI by rogue states, criminals and terrorists will grow exponentially in the coming years, according to 'The Malicious Use of Artificial Intelligence: Forecasting, Prevention, and Mitigation' report. The report is authored by 26 experts in AI, cyber security and robotics from universities including Cambridge, Oxford, Yale, Stanford and non-governmental organisations, such as OpenAI, the Center for a New American Security and the Electronic Frontier Foundation.

Yet despite the potential risks posed by malicious actors, many institutions are wholly unprepared. For the authors, over the course of the next decade, the cyber security landscape will continue to change and the increased use of AI systems will lower the cost of a cyber attack, meaning that the number of malicious actors and the frequency of their attacks will likely increase.

“We live in a world that could become fraught with day-to-day hazards from the misuse of AI and we need to take ownership of the problems – because the risks are real. There are choices that we need to make now, and our report is a call-to-action for governments, institutions, and individuals across the globe,” says Dr Seán Ó hÉigeartaigh, executive director of Cambridge University’s Centre for the Study of Existential Risk and a co-author of the report.

In response to the evolving threat of cyber crime and the potential misappropriation of AI, the report sets forth four recommendations. First, policymakers should work with researchers to investigate, prevent and mitigate potential malicious uses of AI. Second, researchers and engineers in AI should take the dual-use nature of their work seriously, allowing misuse-related considerations to influence research priorities and norms. Third, organisations should identify best practices where possible in research areas with more mature methods for addressing dual-use concerns, such as computer security, and imported where applicable to the case of AI. Finally, companies should actively seek to expand the range of stakeholders and domain experts involved in discussions of these challenges.

Report: The Malicious Use of Artificial Intelligence: Forecasting, Prevention, and Mitigation

Rise of the robots

BY Richard Summerfield

Automation is coming. Recent reports have suggested that millions of people around the world will be impacted by the wave of automation and other new technologies which are currently emerging.

A new report from PwC – 'Will robots really steal our jobs?' – suggests that while the financial services industry in particular could be vulnerable to automation in the short term, a variety of industries, including those in the transport space, are much more vulnerable in the longer term in the UK. Less well educated workers, too, will be increasingly susceptible to replacement. Female workers are also more likely to be replaced than their male counterparts.

PwC has identified three distinct waves of automation which will impact the global economy up to 2030: the algorithm wave, the augmentation wave and the autonomy wave.

The algorithm wave is already underway and will last until the early 2020s. It involves automating structured data analysis and simple digital tasks, such as credit scoring. This wave could see just 2-3 percent of UK employees affected – 4 percent of women and 1 percent of men.

The augmentation wave, which centres on the automation of repeatable tasks and exchanging information, as well as further development of aerial drones, robots in warehouses and semi-autonomous vehicles, could impact 20 percent of UK jobs – 23 percent of women and 17 percent of men. This wave will last until the late 2020s.

The third wave, the autonomy wave, suggests that AI will have developed to the point that it will be able to analyse data from multiple sources, make decisions and take physical actions with little or no human input. This wave will last until the mid 2030s and could affect 30 percent of the workforce – 26 percent of women and 34 percent of men.

Euan Cameron, UK Artificial Intelligence leader at PwC, said: “Our research shows that the impact from automation and AI will be felt in waves, with more routine and data tasks hit first. But just because businesses and people aren’t feeling the impacts right now, there is no excuse not to start planning for the future. AI technology is getting more sophisticated every day and businesses need to understand how, where and when their people are likely to be affected in the future. Those that understand the risks and opportunities can start upskilling their people and adapting their businesses, rather than simply reacting when it’s too late.”

Automation is expected to be a boon for the economy, however. PwC believes it could contribute as much as 10 percent to UK GDP and 14 percent to global GDP by 2030.

Report: Will robots really steal our jobs?

AI to drive GDP growth – PwC

BY Richard Summerfield

Across a wide spectrum of industries there is burgeoning excitement around the implementation and applications of artificial intelligence (AI). While there will be myriad challenges with properly leveraging AI, a new report from PwC suggests that global GDP could be up to 14 percent higher in 2030 as a result of AI – the equivalent of adding an additional $15.7 trillion to the global economy.

Though AI is, in some respects, a mystery for many organisations, in terms of how it will impact them and alter their business models, it is important for companies to embrace AI where possible. AI can enhance many different areas of organisations’ businesses, according to PwC, which, in turn, will drive economic gains.

Productivity will be boosted by companies automating processes using robots and autonomous vehicles. Companies will also be able to augment their existing labour forces by installing AI technologies, including assisted and augmented intelligence. Consumer demand will also be altered by AI. Personalised and higher-quality AI-enhanced products and services will drive consumer activity.

The report notes that all regions of the global economy will experience benefits from AI, including North America, China, Europe and developed Asia. China will see GDP grow by 26 percent to 2030, and North America will receive a 14.5 percent boost. However, emerging markets will see more modest growth in the coming years, at less than 6 percent of GDP, due to lower AI adoption rates forecast for Latin America and Africa.

According to the report: “The ultimate commercial potential of AI is doing things that have never been done before, rather than simply automating or accelerating existing capabilities. Some of the strategic options that emerge won’t match past experience or gut feelings. As a business leader, you may therefore have to take a leap of faith. The prize is being far more capable, in a far more relevant way, than your business could ever be without the infinite possibilities of AI.”

On a sectoral basis, the industries most likely to benefit from the emergence of AI will be retail, financial services and healthcare, thanks to improvements in productivity, product value and consumption.

Report: PwC’s Global Artificial Intelligence Study: Exploiting the AI Revolution