AI-Driven Cyber Attacks and Supply Chain Vulnerabilities Escalate Risk Landscape, Aon Report Finds

The global cyber risk landscape is undergoing a dramatic shift, with artificial intelligence (AI) rapidly becoming a double-edged sword, significantly escalating the threat of cyberattacks while simultaneously exposing critical vulnerabilities within technology supply chains. This stark warning comes from Aon plc’s 2025 Cyber Risk Report, which highlights that traditional defenses are struggling to keep pace with the speed and sophistication of AI-driven threats.

The report, drawing on extensive data from over 3,000 clients globally and analyzing more than 1,400 cyber events, reveals that AI is no longer a futuristic concern but a present-day reality for cybercriminals. “AI is no longer a future threat, it’s a present-day reality,” stated Adam Peckman, head of risk consulting and cyber solutions in APAC at Aon. “We’re seeing relatively unsophisticated actors now wielding tools that rival state-sponsored capabilities. The barrier to entry has dropped dramatically, and the velocity of attacks is only increasing.”

One of the most alarming developments is the rise of AI-powered social engineering attacks. The report cites a recent incident where a UK engineering firm lost $25 million due to a deepfake-enabled scam, a tactic now being replicated in other regions. These incidents underscore the worrying accessibility and replicability of such advanced deceptive strategies.

Beyond direct AI-driven attacks, the report identifies technology supply chains as a major Achilles’ heel. Numerous high-profile breaches have originated from compromises within third-party vendors, where attackers exploit weaker security standards to gain privileged access to client systems. “Organisations must start treating their vendors as part of their own attack surface,” urged Joerg Schmitz, Cyber Risk Quantification and Analytics Leader for APAC at Aon. “The most lucrative attacks are those that can be scaled across multiple targets through a single compromised supplier. This is a wake-up call for businesses to reassess how they manage third-party risk.”

Despite continued investments in cybersecurity, Aon’s findings indicate that core controls are being circumvented or rendered obsolete by these evolving tactics. The pervasive use of AI to optimize every stage of the attack chain – from reconnaissance to execution – necessitates a fundamental rethinking of defensive strategies. The 2025 Cyber Risk Report serves as a crucial resource, enabling organizations to benchmark their cyber maturity, align insurance and security strategies, and make more informed, data-driven decisions in this rapidly intensifying risk environment.