AI-Powered Insider Threats Overtake External Attacks, Exabeam Research Reveals
Exabeam’s latest global report, "From Human to Hybrid: How AI and the Analytics Gap Are Fueling Insider Risk," uncovers a sobering trend: AI-driven insider threats have surpassed external attacks as the top security concern for organizations. Drawing from insights gathered from 1,010 cybersecurity professionals, the study highlights how AI is escalating internal security risks.
Insiders Now Seen as Bigger Threats Than Hackers
A compelling 64% of respondents now consider insiders whether acting maliciously or compromised - to be a greater danger than external actors. Generative AI plays a leading role, enabling faster, stealthier, and more complex attacks that evade traditional detection methods.
Steve Wilson, Exabeam's Chief AI and Product Officer, puts it bluntly:
“Insiders aren’t just people anymore. They’re AI agents logging in with valid credentials, spoofing trusted voices, and making moves at machine speed. The question isn’t just who has access - it’s whether you can spot when that access is being abused.”
Insider Threat Trends Escalate Across Sectors
Internal threats are rising fast across industries. More than half of organizations (53%) reported an increase in insider incidents in the past year, and 54% expect this trend to accelerate in the months ahead. Government entities anticipate the most dramatic uptick at 73%, followed by manufacturing (60%) and healthcare (53%).
Regional differences also emerge: Asia-Pacific and Japan lead with 69% forecasting growth in insider risks, while the Middle East stands apart, with 30% anticipating a decline - potentially reflecting a mix of stronger defenses or underestimating the threat.
How AI Is Supercharging Insider Attacks
AI is redefining internal threats. AI-fueled phishing and social engineering now rank among the top three insider threat vectors, comprising 27% of reported tactics. These methods adapt and disguise themselves in real-time to appear authentic.
Complicating matters further, 76% of organizations report unauthorized use of generative AI - repurposing productivity tools like ChatGPT, Gemini, or LLaMA for nefarious ends. The highest rates of unapproved use are found in technology (40%), government (38%), and financial services (32%). In the Middle East, unauthorized AI usage is the primary insider threat concern.
Detection Capabilities Lag Behind Threat Evolution
Despite nearly 88% of organizations having insider threat programs, detection often falls short. Less than half - only 44% - use User and Entity Behavior Analytics (UEBA), a critical tool for spotting abnormal activity. Many still depend on tools like identity access systems, DLP, and endpoint tools that lack behavioral nuance.
Exabeam’s CISO Kevin Kirkwood highlights the disconnect:
“AI has added a layer of speed and subtlety to insider activity that traditional defenses weren’t built to detect. Security teams are deploying AI to detect these evolving threats, but without strong governance or clear oversight, it’s a race they’re struggling to win. This paradigm shift requires a fundamentally new approach to insider threat defense.”
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