NZ businesses report surge in AI-related security incidents

A new Kordia survey reveals that improper use of artificial intelligence by employees has become a leading cybersecurity concern for New Zealand businesses, with 24% now ranking shadow AI among their top three challenges, up from 16% a year earlier, according to Security Brief New Zealand.

The research, surveying nearly 250 organizations with 50+ employees, found staff using unsanctioned AI tools create new data exposure paths by copying confidential information into systems without understanding consequences. Patrick Sharp of Kordia-owned Aura Information Security noted that "insider threats, whether accidental or malicious, have always been a factor," but unauthorized AI use is accelerating. Attacks exploiting AI vulnerabilities rose to 14% in 2025 from 6% in 2024, even as overall reported incidents declined.

Extortion pressure intensified, with 19% of impacted businesses facing financial demands, up from 14%. When demands were made, 42% paid. Operational disruption affected 20% of attacked businesses, with 17% experiencing personal data theft. Secondary costs included insurance claims (17%), regulatory fines (11%), and legal action (9%).