UK ministers tell UK businesses to ‘step up’ cyber defences

Ministers have announced a new push to force firms to strengthen their cyber defences against AI-powered attacks, as Britain’s cyber industry has swelled to £14.7bn.

According to new Department for Science, Innovation and Technology (DSIT) figures, Britain’s cyber sector saw a 11 per cent rise in the past twelve months, while the number of companies operating in the industry jumped 20 per cent.

The sector also added 2,300 jobs over the same period, as businesses and public services ramped up spending on digital protection amid growing fears that AI is dramatically accelerating threats.

Ministers have also urged UK PLC to sign a new government-backed cyber pledge, which will require them to treat cyber security as a board-level issue, as well as adopt cyber essentials protections across supply chains.

The government has backed the initiative with £90m in funding, in a plea to strengthen resilience across the economy.

As cyber security minister Baroness Lloyd said: “Cyber security is now fundamental to economic growth, job creation and the resilience of the services people rely on every day”.

“As threats evolve, businesses of all sizes need to step up and take practical action now,” he added.

The move comes as banks and regulators increasingly warn that a new generation of AI tools or systems could significantly lower the barriers of entry for bad actors.

Government figures have shown that 43 per cent of UK businesses have experienced a cyber breach or attack in the past year.

AI reshapes cyber warfare

Both the IMF and the Bank of England have recently intervened over the mounting risks posed by AI use in cyberattacks.

The former cautioned earlier this month that sophisticated incidents triggered liquidity pressures, as well as wider disruption across financial systems globally.

The lender added that the technology was massively reducing the time and cost needed for attackers to retrieve relevant information, especially as financial firms become more and more dependent on digital systems.

Meanwhile, Bank of England governor Andrew Bailey warned that new AI models could “crack the whole cyber risk world open”.

The UK’s National Cyber Security Centre has also warned the country is facing a “perfect storm” of risk, propelled by geopolitical tensions and new AI advances.

And, while officials see AI as having a big impact in defending such risks, they also recognise that many firms still lack even basic cyber hygiene.

Deputy chief tech officer at the NCSC recently said AI-fuelled defence “cannot be the sole answer” to the new scale of attacks, and that firms should prioritise protections.

The Cyber Security and Resilience Bill will continue to move through Whitehall following the King’s Speech, with parliamentary members arguing stronger rules are needed to protect sectors like healthcare and energy.