By Naomi Jeremiah
Cybersecurity is no longer a background technical issue. In 2026, it is emerging as a systemic business and economic risk, driven by the rapid acceleration of artificial intelligence, rising cyber-enabled fraud and intensifying geopolitical tensions.
This is the central warning from the World Economic Forum’s Global Cybersecurity Outlook 2026, released ahead of the Forum’s Annual Meeting in Davos. Drawing on insights from C-suite executives and cybersecurity leaders worldwide, the report paints a picture of a digital environment evolving faster than many organizations can respond.
According to the Forum, cybersecurity has become a critical frontier where technological progress, national security and economic resilience now intersect.
Fraud Becomes the Dominant Cyber Threat
For the first time, cyber-enabled fraud has overtaken ransomware as the top cyber concern for global executives. In 2025 alone, 73% of survey respondents reported being directly affected by digital fraud, either personally or through their organizations.
The impact is widespread. Sub-Saharan Africa recorded the highest exposure, with 82% of respondents affected, followed closely by North America at 79%. From retail and manufacturing to childcare services, cybercrime is no longer confined to large corporations or financial institutions.
Chief executive officers now rank cyber-enabled fraud as the single most pressing cyber risk facing their organizations.
AI Is Accelerating Risk on Both Sides
Artificial intelligence is transforming cybersecurity at unprecedented speed. Ninety-four per cent of survey respondents identified AI as the most significant driver of change in the year ahead.
While AI strengthens detection and defence capabilities, it is also introducing new vulnerabilities. Executive concern is shifting away from attackers’ use of AI toward unintended data exposure through generative AI systems. In 2026, data leaks linked to generative AI emerged as a greater worry than adversarial AI capabilities a reversal from previous years.
This shift reflects a broader challenge: organizations are adopting AI faster than they are securing it.
Geopolitics Reshapes the Cyber Landscape
Cyber risk is increasingly shaped by global political tensions. Sixty-four per cent of organizations now factor geopolitically motivated cyberattacks into their risk planning, including espionage and attacks on critical infrastructure.
Despite this growing awareness, confidence in national cyber preparedness is declining. Thirty-one per cent of respondents expressed low confidence in their country’s ability to manage major cyber incidents, up from 26% the previous year. Regional disparities are stark, ranging from high confidence levels in the Middle East and North Africa to significantly lower confidence in Latin America and the Caribbean.
As geopolitical fragmentation deepens, organizations are turning to stronger threat intelligence and closer collaboration with governments to manage escalating risks.
Supply Chains and Skills Gaps Add Pressure
Beyond external threats, internal vulnerabilities continue to challenge cyber resilience. Rapidly evolving technologies, third-party and supply chain exposure, and shortages in cybersecurity expertise remain persistent risks.
Smaller organizations are particularly exposed. Nearly half report insufficient cybersecurity skills, compared to less than a third of larger firms. The gap is even more pronounced in the public sector and among non-governmental organizations.
Cybersecurity as an Economic Priority
The economic consequences of cyber incidents are becoming impossible to ignore. UK government data cited in the report estimates that a single significant cyberattack costs businesses an average of £195,000 ($250,000), contributing to nearly £14.7 billion ($19.4 billion) in annual national losses.
As digital infrastructure becomes increasingly concentrated among a small number of providers, outages and disruptions can ripple across entire economies, amplifying systemic risk.
A Strategic Imperative, Not an IT Function
The World Economic Forum concludes that cybersecurity must now be treated as a strategic leadership issue rather than a technical function. In a deeply interconnected digital economy, resilience depends on coordinated action across industries, governments and borders.
Cybersecurity, the report argues, is no longer just about preventing loss, it is central to economic stability, competitiveness and long-term growth.
Culled from: World Economic Forum