Small Business Groups Urge Australia to Combat AI Cyber Threats

The Council of Small Business Organisations Australia (COSBOA) and Business Chamber Queensland are urging the Australian government to increase support for small businesses facing artificial intelligence-driven cyber threats. In submissions to a parliamentary inquiry into small and medium business cyber security readiness, COSBOA requested the restoration of funding for the Cyber Wardens program, a free online training initiative that ended following federal budget cuts.

COSBOA Chief Executive Skye Cappuccio reported that 81% of businesses believe AI is increasing the sophistication of cyber criminals, while 32% of small businesses admit to sharing sensitive data with generative AI tools. Business Chamber Queensland identified AI-enabled scams as the fastest-growing threat currently facing small businesses.

Government data highlights the scale of the risk. The Australian Competition and Consumer Commission reported nearly $260 million lost to scams in the first nine months of 2025. Additionally, the Australian Signals Directorate noted that the average cost of a cyber incident rose to $56,600 during the 2024/25 period.