Islamabad – The global cyber risk environment is witnessing a profound transformation as artificial intelligence (AI), geopolitical tensions, and a sharp rise in online fraud reshape the way governments, businesses, and societies approach cybersecurity, according to a new report by the World Economic Forum (WEF).
The Global Cybersecurity Outlook 2026 report highlights that cybersecurity is no longer merely a technical concern but has become a strategic priority for nations and organisations around the world. AI, in particular, is playing a dual role — enhancing defensive capabilities while simultaneously empowering attackers to launch more sophisticated and harder-to-detect operations. Experts warn that this rapid technological shift is redefining the very nature of cyber threats.
According to the WEF report, 87 per cent of cybersecurity leaders reported a surge in AI-related vulnerabilities in 2025, with generative AI and adversarial tools being exploited for malicious purposes. Meanwhile, 94 per cent of global security professionals agree that AI will be the single most consequential factor shaping cybersecurity in 2026. AI-powered attacks are becoming more precise, automated, and capable of bypassing traditional security measures, posing unprecedented challenges for organisations of all sizes.
Geopolitical tensions are further complicating the cyber landscape. Conflicts between states have expanded into the digital realm, with critical infrastructure, supply chains, and sensitive government systems becoming targets of state-sponsored attacks. The report notes that 64 per cent of organisations now consider geopolitically motivated cyber attacks in their risk assessments, signalling that political instability abroad can have direct economic and security repercussions at home.
Another alarming trend highlighted in the report is the rise of cyber-enabled fraud, which is now considered one of the most pervasive global threats. Fraud, phishing, and scams are overtaking ransomware in their frequency and impact, affecting millions of individuals and organisations worldwide. In 2025, 73 per cent of organisations reported experiencing financial or operational losses due to cyber fraud, illustrating the scale of the challenge.
AI has intensified the threat of online fraud. Advanced technologies are being used to craft highly convincing phishing emails, deepfake impersonations, and automated scam platforms, making it increasingly difficult for victims to distinguish between legitimate and malicious communications. Regional cybersecurity authorities, including the UAE’s Government Cybersecurity Council, have reported that AI-powered phishing now accounts for a significant majority of digital breaches in the Middle East.
The report also highlights systemic vulnerabilities in global supply chains, particularly in reliance on major cloud and internet service providers. A breach in a key node could trigger cascading disruptions, affecting companies and governments across borders. Smaller organisations face particularly acute risks due to limited technical expertise and resources, making them prime targets for cybercriminals.
As digital transformation accelerates worldwide, the WEF underscores that cyber resilience must be treated as a strategic priority rather than a back-office technical concern. Strengthening governance frameworks, investing in skilled human resources, and fostering international collaboration are critical steps to counter the evolving threats posed by AI, geopolitical conflicts, and online fraud.
The report serves as a stark reminder that in an increasingly interconnected digital world, cybersecurity is not just a defensive measure but a crucial element of national and economic security, requiring coordinated efforts across all sectors and regions.
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