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CPA Australia boss says the rapid rise of AI in the workplace is a clear boon, but also exposes businesses to the risk of “devastating data breaches”.
The rapid adoption of artificial intelligence tools in Australian workplaces could lead to a new wave of cyber security risks, particularly among smaller enterprises, according to the peak accountancy body CPA Australia.
“As AI tools become more integrated into financial systems and workflows, they also create new cyber security vulnerabilities that businesses must proactively manage to avoid substantial financial and reputational damage,” Gavan Ord, CPA Australia’s business investment and international lead, said in an 11 November statement.
“Cyber security isn’t optional – it’s essential. Smaller businesses are especially vulnerable due to limited resources and cyber security expertise.”
Ord’s warning comes on the back of the release of CPA Australia’s Business Technology Report 2025, which found that 18 per cent of Australian businesses lost either time or money due to a cyber incident in the last 12 months.
CPA Australia’s survey found that, out of 1,117 accounting and finance professionals in the Asia-Pacific region, 14 per cent of Australian businesses have either reactive or inconsistent cyber policies. Australian companies are, on average, doing better than other countries in the region, but Ord warned local entities not to be complacent when it comes to security investments, particularly if they are rolling out AI tools.
“Australian small businesses generally lag in technology adoption compared to Asian markets, but the good news is that investment in AI is now accelerating. However, it’s vital this is matched by investment in cyber security,” he said.
“Used correctly, AI will help boost business productivity and inspire growth, but there are also questions about its vulnerability to emerging online threats. The last thing a business needs is a major investment in technology, opening the door to criminals.”
Larger businesses are not immune, however. Despite possessing more mature systems, losses related to cyber incidents are more likely the larger a business is.
“Cyber criminals target weaknesses, not size. For small businesses, a single breach can be devastating. The need to secure sensitive data and information has never been more urgent. Prevention is more cost-effective than recovery,” Ord said.
“AI offers powerful insights, but it must be paired with human oversight and strong governance to reduce cyber risks and biased or flawed outcomes.
“Implementing robust cyber security measures is now as essential as having modern IT systems. Without these protections, businesses risk losing clients, revenue and most importantly, their reputation.”
You can read CPA Australia’s full report here.
David Hollingworth has been writing about technology for over 20 years, and has worked for a range of print and online titles in his career. He is enjoying getting to grips with cyber security, especially when it lets him talk about Lego.
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