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The survey examines concerns among U.S. decision-makers at small, midsized, and large businesses across a range of industries.

Cyber risks rank as the No. 1 overall business concern in the 2026 Travelers Risk Index, with artificial intelligence introducing new risks alongside traditional cyber threats.

The survey examines concerns among U.S. decision-makers at small, midsized, and large businesses across a range of industries. This year, Travelers also examined how AI is changing the cyber risk environment.

AI Raises New Cyber Concerns

AI-related cyber events ranked as the second-highest specific cyber concern among business leaders. Fifty-six percent expressed concern about security breaches or hackers, while 55% cited a security breach or cyber event involving AI.

AI use is already widespread. Travelers found that 89% of organizations reported workforce use of AI tools. However, 59% have established business practices governing employee AI use.

Additionally, 47% of businesses reported concern about a lack of visibility into how, where, or by whom employees use AI within their organizations.

Business leaders identified several AI-related concerns. Fifty-six percent cited attackers using AI to exploit system vulnerabilities, while 54% cited AI-generated phishing, deepfakes, or social engineering attacks.

Meanwhile, 52% expressed concern about sensitive company data being retained to train external AI models. Another 51% cited employees entering sensitive information into unsanctioned AI tools, and 50% cited third-party vendors improperly using AI.

Cyber Events Continue

Travelers reported a 150% increase in the number of companies reporting cyberattacks over the past 10 years. Among businesses that reported an attack, 60% experienced more than one.

System glitches or user errors were reported by 38% of affected businesses, while 33% experienced a security breach. Another 31% reported employees putting information or systems at risk.

Unauthorized access to operational control systems affected 25%, while 24% reported income losses caused by a vendor cyber incident.

Businesses Strengthen Cybersecurity

The survey also found increased use of several basic cybersecurity measures. Eighty-one percent of businesses use firewall protection, 81% have data backup and infrastructure measures, and 76% keep software updated and prioritize known patches.

However, other measures remain less common. Travelers found that 53% of businesses do not simulate cyberattacks to identify system vulnerabilities, 51% do not have a post-incident response team on retainer, and 40% do not have a written incident response plan.

Fewer than 6 in 10 businesses formally assess the security posture of supply chain partners or vendors with access to their systems.

Cyber Insurance Coverage Varies by Business Size

The survey found that 81% of respondents consider proper cyber insurance coverage critical to their company’s well-being. However, coverage levels differ by business size.

Half of small businesses lack cyber insurance, compared with 24% of midsized businesses and 18% of large businesses.

Meanwhile, 92% of business leaders expressed confidence in insurance carriers as a source of cybersecurity expertise and guidance.

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