By now we all will agree that artificial intelligence is no longer a futuristic concept, it is here and we are part of this revolution and as we see it’s transforming industries at an unparalleled pace. While it is brings exciting opportunities, it also presents unique challenges.
According to recent market studies, the AI trust, risk and security management market was valued at $1.7 billion in 2022 and is projected to reach $7.4 billion by 2032, growing at a CAGR of 16.2%. This significant growth underscores the value that AI brings to the table in identifying and managing business risks. (Ref: https://appinventiv.com/blog/ai-in-risk-management/)
So, how can businesses prepare to ride this wave of change successfully? Let’s understand it.
Understanding AI’s role in risk management
Identifying potential threats and minimizing damage has always been a priority for businesses and this comes under risk management. All these years till the advent of AI, company employees were using the generated data, assessing scenarios and taking preventive actions. With AI, businesses have started using predictive analytics, automation, and real-time data processing to stay ahead of the curve.
Imagine this, today instead of relying on manual audits and reports generated after the audits, AI can analyse vast amounts of data in real-time then and there and detect patterns that might indicate fraud or security breaches before they even happen. For example, when AI is used in a financial set up it can monitor thousands of transactions at once and highlight unusual activity that a human might miss. This predictive power is the fastest way one can do it and has become the game changer for minimizing risks and ensuring security.
Why AI matters for security?
AI is a powerful tool which is boon and bane at the same time. On one side it helps to strengthen defense by improving the threat detection and automating responses. But on the other hand it’s a tool that cyber criminals are increasingly mastering to launch high quality sophisticated attacks. This shows that businesses need to be proactive and plan one step ahead in integrating AI to not only defend against these threats but stay ahead of the attackers. Companies like Microsoft and IBM are already using AI-based security platforms to continuously monitor systems and adapt to new threats in real time.
Preparing for AI-Driven Risk and Security by 2025
So, here’s how businesses can prepare for AI’s expanding role in risk management and security.
1. Adopt AI-driven tools – Businesses need to adopt AI tools for risk management and security. These tools can analyze massive data sets, spot patterns, and make decisions faster than humans.
For instance, banks are today using AI-powered systems to identify a fraud transaction by reviewing the transactions in real-time as most of the transactions in the contemporary era take place online, and waiting for manual audit will be of no use.
2. Investment in AI – AI is powerful but depends upon the people managing it. To capitalize on AI, businesses need to invest in improving and up-skilling the teams. The employees will require education on its functionality and reliance to allow employees to build capabilities on informed decisions formed off the insights generated by AI. Due to constant improvements in AI, learning from employees must also be continuous and crucial for the successful use of AI.
3. Improve cybersecurity – As AI creates new opportunities for business it also presents new problems and loopholes. Businesses need to invest in AI-based cybersecurity systems and be ahead of attackers who are using the same technology. There should be regular audits, penetration tests, and updated protocols for avoiding errors.
4. Build an adaptable culture – Businesses need to develop adaptable culture. AI is an evolving tool. Businesses will be required to be flexible, continually trying to update strategies and systems, and being prepared to shift when it’s needed.
By 2025, from predictive analytics to real-time monitoring, AI will lead the charge to protect business from financial, operational, and cybersecurity threats. However, businesses need to proactively adopt new tools, talent, and systems that could be adaptable with AI’s faster pace of evolution. AI will take on a larger part as enterprises reduce risk and security better.
And the future of risk management and security will be fuelled by AI. So, any enterprise that is preparing for that shift today will have time to handle tomorrow’s challenges.
CRG Solutions delivers Intelligent Digital Workforce solutions to help our customers Innovate, Automate and Standardize their business processes to ensure superior customer experience and improved process efficiencies.
We have one goal: to improve enterprise performance through digital transformation of the enterprise through: Data and Predictive Analytics, Collaboration and Automation. Contact us to know more.
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