Sage-Commissioned IDC Study: SMBs Adopt AI Faster Than They Secure It

Research commissioned by Sage and conducted by IDC finds that small and medium-sized businesses are deploying AI tools faster than they are implementing corresponding security measures.[7] The study reports that 84% of micro businesses are unprepared or only just beginning to address AI-related threats, with 44% lacking any specific security controls for AI applications and 45% of SMBs citing insufficient AI security expertise as a key barrier.[7] One in two SMBs experienced a cyber incident or data breach in the past year, with AI-enabled phishing, vulnerability exploitation, and deepfakes among leading concerns, underscoring data leakage and governance risks in AI adoption.[7]

The report says SMBs are adopting AI faster than they are putting security controls in place, with 84% of micro businesses unprepared or only starting to address AI-related threats and 44% lacking specific controls for AI applications. It also reports that 45% of SMBs cite insufficient AI security expertise, while one in two experienced a cyber incident or data breach in the past year. RealGround interpretation: this is primarily a governance and readiness gap around AI use, with practical exposure to data handling, policy, and control weaknesses that can lead to leakage and unsafe deployment.