Four-fifths or 79% of organisations in Singapore experienced at least one AI-related cyber threat in the past 12 months, according to a report from ESET.
Commissioned by ESET in partnership with Blackbox Research, the study surveyed 400 cybersecurity decision-makers across Singapore, representing organisations of varying sizes and across a wide range of industries and verticals.
Findings show that nearly all organisations (97%) are already using or piloting AI across functions including customer service, document processing, business analytics, software development, risk management and threat detection.
“AI is becoming deeply embedded in how businesses operate. As we give it access to more data and greater influence over decisions, organisations must ensure the right oversight and safeguards are in place. Trusting AI also means knowing how and where it is being used,” said Parvinder Walia, president of the APAC region at ESET.
As AI becomes embedded across business functions, most organisations are introducing safeguards, but visibility into how AI is being used remains limited.
Only 49% have implemented measures to monitor AI tool access and outputs, highlighting a gap in organisations’ ability to oversee and manage AI-related risk.
AI-related risks are emerging both from within organisations and from external attackers. Around four in ten organisations reported employee misuse of generative AI and data leakage through AI platforms.
At the same time, attackers are using AI to manipulate human judgement and target everyday decisions. AI-generated phishing and impersonation attacks were the most commonly reported AI-related threat (46%), followed by exploitation of AI-powered tools such as prompt injection (41%) and AI-enabled deepfake or voice cloning attacks (39%).
The impact was particularly pronounced in financial services organisations (62%) and technology companies (55%), which reported the highest levels of AI-generated phishing and impersonation attacks.
Beyond AI-related threats, more than seven in ten organisations (71%) experienced at least one major cybersecurity incident during the past year, while one in four (25%) experienced three or more incidents.
Cloud environment breaches, insider threats and data exfiltration were the most common incidents reported.
The bigger challenge, however, was responding once an incident occurred. While 76% of organisations said they were able to detect and respond to threats within 24 hours, delayed detection remained one of the top challenges, cited by 55% of respondents.
Nearly half (49%) cited a lack of visibility across environments, while 41% reported shortages of skilled cybersecurity professionals.
“In cybersecurity, speed changes the outcome. A threat left undetected for hours can quickly become a business-wide incident,” said Walia. “Organisations need continuous visibility, rapid response and access to deep expertise to contain threats early and protect business continuity.
Phishing and social engineering attacks were the leading cause (36%), followed by lack of visibility across IT environments (34%), limited cybersecurity resources or skills shortages (34%), and user actions or human error (32%).
According to ESET, the findings suggest that cyber incidents are rarely the result of a single weakness, but rather a combination of people, process and technology gaps.
ESET telemetry from the first half of 2026 also identified phishing as the leading threat observed globally.
“Phishing remains effective because it targets people, and AI is making those attacks significantly more convincing. Deepfakes, impersonation and highly personalised messages are increasingly difficult to distinguish from legitimate communication,” said Walia.
“Organisations must move beyond annual awareness exercises and continuously build their human layer of defence through relevant training and realistic simulations. Technology can stop many threats, but a well-prepared employee can stop the one that gets through,” added Walia.
As AI, cloud platforms and connected technologies reshape enterprise environments, organisations are expanding their cybersecurity priorities beyond foundational controls.
The next phase of investment is increasingly focused on capabilities that provide greater visibility, specialist expertise and faster response. At the same time, the impact of cyber incidents remains significant, with one in six reporting significant financial losses.
Managed Detection and Response (MDR) was the most widely planned cybersecurity capability over the next 12 months, with 43% of organisations planning to adopt it.
Cyber insurance is also gaining attention, with 36% planning to obtain coverage. However, 97% of organisations reported challenges in obtaining or maintaining cyber insurance, with 43% citing stricter security requirements as a challenge.
“Cybersecurity is now essential to keeping businesses running. As AI and connected technologies grow, organisations need to understand where their risks are, react quickly when something goes wrong, and adopt new technology with confidence,” said Parvinder.
