This year, British retailers Marks & Spencer, Co-op Group and Harrods have all been hit by attacks, with M&S still unable to take online clothing orders at the time of publishing. As these cyber-attacks become more sophisticated and prevalent within high profile organisations, we wanted to take a look at what these incidents can teach us about the world of cybersecurity, and what the future could lead to for businesses.

According to research by Omdia, only 15% of enterprises globally have a fully developed approach to cybersecurity and digital risk. In order to ensure that organisations are sufficiently protecting themselves, the must prioritise identifying their gaps in protection, to confidently navigate the complexities of cybersecurity.

Artificial Intelligence is reshaping the cybersecurity landscape for businesses in 2025, offering both innovative defence mechanisms and introducing new challenges. Read on for some insightful tips and considerations on the intersection of AI and cybersecurity for businesses.

The Government Response to AI-Driven Cyber Threats has been immediate and swift

Governments are recognising the heightened cyber risks associated with AI adoption. In the UK, officials have noted an increase in cyberattacks correlating with AI's proliferation, prompting the development of new cybersecurity strategies and legislative measures to bolster national defences. Senior Minister Pat McFadden said in May 2025: “The growth of AI will increase the number and sophistication of cyberattacks on Britain”.

The M&S Cyberattack has triggered a comprehensive and immediate government response, inspiring key developments:

• Immediate Action: GCHQ's National Cyber Security Centre (NCSC) has taken a proactive stance, working directly with affected retailers. NCSC CEO Richard Horne emphasised that "These incidents should act as a wake-up call to all organisations".
• Industry Response: Helen Dickinson, CEO of British Retail Consortium, highlighted that "cyberattacks were becoming increasingly sophisticated, forcing retailers to spend hundreds of millions of pounds every year on defences".
• Strategic AI Implementation: As reported in Morgan Stanley Insights in 2025, companies are increasingly creating unified data platforms that combine data lakes with structured warehouses to enhance AI-powered security measures. The focus has now shifted to developing "best-of-breed AI and machine learning services" specifically for cybersecurity and analytics(Morgan Stanley Insights, 2025)

Hear more about the UK government response to AI, as well as the UK’s AI future at The AI Summit London this June, where we’ll be joined by Rt Hon Peter Kyle, Secretary of State for Science, Innovation & Technology, as he provides an update on the UK's AI opportunities plan. Register here.

The Battle of Strategic Budgeting is on: AI vs. Cybersecurity

A recent AWS-commissioned survey revealed that 45% of global IT leaders prioritise generative AI over cybersecurity in their 2025 tech budgets. This shift underscores the need for balanced investment strategies that address both innovation and security.

• Market Impact: According to Reuters, the attack “erased £700 million ($930 million) from M&S's market value, demonstrating the critical need for balanced investment in AI and security infrastructure”.
• Market Growth: The UK cybersecurity sector has shown significant expansion, growing 11% increase from the previous year. The sector's revenue has reached £13.234 billion in 2024, demonstrating a 12% growth (UK Government Cyber Security Sectoral Analysis 2025). Looking ahead, the UK Cybersecurity Market is projected to grow significantly, from $8.5 billion in 2025 to $27.8 billion by 2035, according to Market Research Future.
• Financial Impact: The scale of financial loss from cyberattacks has been demonstrated by the M&S case. This year in The Guardian, Deutsche Bank analysts estimate the cyberattack "has already sliced £30m off M&S's annual profits and will continue to hit the retailer by £15m a week".

AI's dual role in enhancing cybersecurity and introducing new threats necessitates a comprehensive approach. Businesses must invest in advanced AI-driven security solutions, manage digital identities effectively, and remain vigilant against evolving cyber threats. Simultaneously, workforce development and governmental policies play crucial roles in navigating this complex landscape.

Are you ready to step into the future of digital defence? Join us at The AI Summit at BlackHat USA, August 6th 2025, your gateway to mastering the two pivotal forces shaping today’s technology landscape, AI and cybersecurity. Secure your spot here.