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Artificial Intelligence in Cybersecurity for Small Businesses

Headshot for GDM author Bhavya Aggarwal
By Bhavya Aggarwal

Published | Updated on
8 min read
Header image for the blog article "Artificial Intelligence in Cybersecurity for Small Businesses"

Learn how AI can protect your small business from cybercriminals.

Security risks and hacking schemes that threaten small businesses are getting more sophisticated with the rise of artificial intelligence. Your small business’s security tech and protocols need to keep up, but you may not always have the time to research the latest AI advances to see if they’re worth adopting. 

To help small-business leaders or IT security managers get up to speed, this guide breaks down five use cases of AI in cybersecurity backed by Gartner research.[1] We also feature insights on the technology’s current state, future potential, and limitations from Howard Globus, CEO of IT services firm IT On Demand.[2]

"Most security products have had some AI baked into them for years. It’s very difficult to threat hunt tens of thousands of new virus variants that appear every week without an automated process to do some discernment."

headshot of Globus for the blog article "Artificial Intelligence in Cybersecurity for Small Businesses"

Howard Globus

CEO of IT on Demand

What does artificial intelligence in cybersecurity mean?

AI in cybersecurity is an advanced form of automation that uses machine learning to learn from data and past experiences. This helps the technology make logical decisions to protect businesses from a growing list of cyberthreats. It can even mimic human behavior, often using relatable language, to build trust. 

When combined with cybersecurity, AI can help build a cost-effective and resilient security framework that’s capable of tackling both technical and psychological threats. But here's the catch: AI has been around in security tools for some time. 

The antivirus software you've been using for years already leverages AI to find and flag viruses and harmful files. So, AI in cybersecurity isn't a brand-new concept or a stand-alone feature to add to your cart. It’s already part of many tools you use and is just getting better over time, ensuring stronger protection against cyberthreats. The image below highlights four such uses of AI to strengthen cybersecurity.

4 ways AI transforms cybersecurity graphic for the blog article "Artificial Intelligence in Cybersecurity for Small Businesses"

5 use cases of AI to enhance small-business cybersecurity

Results of our 2023 SMB Tech Trends Survey* reveal a shift in mindset among SMB owners: They are not just open to technologies such as AI, but also actively interested in them. They recognize the potential advantages these technologies can bring to their security infrastructure.

However, Globus notes that the complexity and high cost of establishing an AI-integrated security operations center (SOC) might put too much strain on small businesses. A more accessible solution could be selecting a vendor product that’s easy to install and maintain, and comes with AI capabilities for threat analysis. “This arrangement can significantly bolster the defense of any small business,” Globus adds.

AI and ML as essential tech graphic for the blog article "Artificial Intelligence in Cybersecurity for Small Businesses"

1. Transaction fraud detection

With AI, you can closely monitor your financial transactions for potentially fraudulent activities, such as unexpected transaction requests made or unusually large purchase amounts. By incorporating modern fraud detection technology, you can benefit from its real-time monitoring, anomaly detection, and immediate alert systems, which fortify your retail setup.

Globus says this AI feature could be invaluable for organizations handling online transactions. However, it's critical to strike a balance between security and user experience. “To do this, you need to set an appropriate threshold for fraud alerts to minimize false positives. Consider factors such as the nature of your business, volume of transactions, and historical fraud data. These will help you calibrate the sensitivity of your fraud detection system to suit your specific needs.”

Screenshot of suspected fraud in Total ClearSale

Suspected fraud detected in financial fraud detection software Total ClearSale (Source)

2. File-based malware detection

AI can improve the detection rate of harmful files while lowering false positives. By implementing an endpoint protection platform, a firewall, or a secure email gateway, your business can automatically scan all incoming files and emails for potential threats, effectively shielding against malware in email attachments or downloaded files.

However, Globus cautions against using AI without staff training. “AI is crucial to protect against malicious attachments and downloads. But it cannot replace the need for regular staff education on the risks of unverified files. A well-informed security team complements this technology effectively,” Globus says.

Screenshot of suspicious messages in Proofpoint

Suspicious email messages auto-blocked by threat intelligence software Proofpoint (Source)

3. Process behavior analysis

AI can detect abnormal behavior, such as unexpected CPU usage, that might indicate a hidden malware process. Employing AI-enabled endpoint detection and response can spot these unusual behaviors by continuously monitoring system processes, detecting deviations from the norm, and alerting you instantly.

Globus explains, “AI’s strength lies in pattern recognition, making it great for spotting anomalies. But it can only do this when organizations have clear rules about what normal looks like. For instance, having specific steps for money transfers or accessing data can provide a ‘normal’ comparison for AI to spot anything unusual.”

Screenshot of threat prevention dashboard in Heimdal

Threat prevention dashboard in Heimdal endpoint detection and response software (Source)

4. Bot versus human differentiation

AI technology can distinguish between genuine human users and automated scripts or bots. Using bot detection and mitigation can protect your website’s performance and integrity by identifying and blocking bot traffic, thus reducing unwanted load and potential security risks.

Globus says this feature is invaluable in preventing DDoS attacks, which overwhelm your website with traffic to crash it. “However, you must ensure genuine users aren't mistakenly identified as bots. Regularly updating a whitelist of trusted IPs can help with this challenge.”

Screenshot of malicious bots in ClickGUARD

Malicious bots detected by bot detection and mitigation software ClickGUARD (Source)

5. Security operations task automation

AI can automate predefined security operations tasks such as anomaly detection, threat isolation, system patching, and user account control, accelerating your response to security incidents. Employing security orchestration, analytics, and reporting (SOAR) software allows you to set rules for common threat scenarios, thereby automating the incident response process and reducing the time from threat detection to resolution.

Globus adds, “AI and automation can enhance response speed and efficiency. But remember, having trained staff ready for complex incidents that can't be automated is vital. Regular drills can help keep your team prepared.”

Screenshot of automatic threat response in ORNA

Automating threat response processes in SOAR software ORNA (Source)

AI has its limitations as well, but taking precautions can help

AI technology is smart, but it's not as smart as a human cybersecurity expert. It's really good at making decisions based on data, but it can't think creatively like humans. Use AI for its strengths, but don't forget its limitations. AI plus a human touch can give small businesses a strong cybersecurity system.

Globus highlights a few other important points to consider. “Just as we're benefiting from AI, we also need to keep an eye on some ethical questions. Things such as data privacy, data security, and being clear about how we're making decisions—they all matter. We should think about these from the view of the customer, the employee, and the law.”

His advice syncs with what we found in our 2023 AI in Project Management Survey**. Many businesses are holding back from fully embracing AI because they have worries about ethics, privacy, and security.

AI adoption hesitancy graphic for the blog article "Artificial Intelligence in Cybersecurity for Small Businesses"

You see, it’s not a simple road. But here's what Globus suggests to help small businesses navigate these limitations of AI:

  • Respect for privacy: AI thrives on data, so while collecting and feeding data into AI tools, make sure it's only what's necessary. Any personal info that's not needed should be anonymized or removed.

  • Data protection: It’s crucial to secure all the data that's being fed into your AI system, whether it's in use, being transferred, or at rest. Be vigilant about who has access, and make sure your security measures are up to date.

Screenshot of Globus' YT short for the blog article "Artificial Intelligence in Cybersecurity for Small Businesses"

Globus’ take on privacy and ownership when feeding data into an AI tool (Source)

  • Transparency: Let your customers and your team know how you're using AI for cybersecurity. This means that everyone, right up to the decision-makers in the business, needs to understand these processes.

  • Bias and discrimination: We all have biases, and they can slip into the AI system when automating security decisions. So, be mindful of potential biases, and strive for fairness when setting up AI cybersecurity automation.

  • Regulatory compliance: Your AI tools must be law-abiding citizens, wherever your data is being used, stored, processed, or reported on. This can get complex if you're a small business with overseas customers, given the various international laws on data privacy.

And then there are some other elements to think about: monitoring and auditing, fair use, and accountability. AI can be a huge help for small businesses in beefing up cybersecurity, but remember, it's not a one-and-done solution. You need to keep an eye on it, and you need that human touch.

Overwhelmed by AI? Get help from experts

For a fresh-off-the-boat startup or a homegrown business, AI can still seem like a big, scary endeavor. It's new, it's complex, and it feels like you need a Ph.D. to even start. Yet, it’s important to remember that it’s not as smart as a human cybersecurity expert. 

It excels at making data-driven decisions but can’t think creatively and psychologically when sifting through cyberattacks that mimic human behavior. Therefore, consider it as a supplementary tool, not a replacement.

Globus advises turning to AI service companies as they help make AI easy to understand, implement, and manage, even for a two-people startup. 

AIaaS agencies assist in planning and budgeting, making the process less daunting. Their expertise in implementing the plan ensures AI cybersecurity tools function smoothly with minimal business disruption. Finally, they provide continuous support and maintenance to keep your systems updated and optimally tuned amidst the changing cybersecurity threat landscape."

With expert assistance, your small business can confidently step into the world of AI-powered cybersecurity.


Survey methodologies

*Capterra’s 2023 SMB Tech Trends Survey was conducted online from August 2022 to October 2022 among 1,526 respondents from the U.S., U.K., Canada, Australia, and France and from SMBs with revenue less than $1 billion and 2-999 employee size. The survey’s goal was to identify whether small-business technology leaders are changing their approach to technology investments with the rapid pace of technology change and understand the changes in budget allocation and diversion of budget to acquire more technologies. Respondents were screened for their involvement in software purchasing decisions and those who were a leader/member of the group or had significant influence qualified for the study.

**Capterra’s 2023 AI in Project Management Survey was conducted in May 2023 among 320 U.S. respondents to learn more about AI adoption as it relates to project management software. Respondents were screened for employment at U.S. businesses (with 1 to 1,000 employees) that use project management software. All respondents indicated active involvement with their company’s project management operations.


Looking for IT Management software? Check out Capterra's list of the best IT Management software solutions.

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About the Author

Headshot for GDM author Bhavya Aggarwal

Bhavya Aggarwal is a Technical Content Writer at Capterra, covering Information Technology, Cybersecurity, and Emerging Technologies, with a focus on improving IT for small to midsize businesses. He has more than five years of experience in persuasive and fact-based content creation, and his work has been featured in branded publications such as Gartner, Sprinklr, YourStory, etc.

Bhavya has a bachelor’s degree in commerce with a strong background in mass communication and digital marketing. He is a tech geek in the true sense with a passion for staying on top of what’s new in artificial intelligence and emerging technologies for end-consumers. Bhavya lives in India’s capital, Delhi, with his family of four.

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