AI and Quantum Threats Heighten Cyber Risks for Businesses

• •AI adoption is reshaping cybersecurity responsibilities for CISOs.
• •Quantum computing poses a medium-term threat to current encryption methods.
• •Regulatory fragmentation complicates compliance and risk management.

KPMG’s Cybersecurity considerations 2026 report highlights the growing complexity of cyber threats due to rapid AI adoption, geopolitical tensions, and quantum computing risks. The report identifies eight priorities for organizations, emphasizing the dual role of AI in both enhancing and threatening cybersecurity. Chief Information Security Officers (CISOs) face increasing responsibilities as non-human identities outnumber human users in automated environments. The emergence of quantum computing poses a medium-term risk to existing encryption methods, necessitating a shift to post-quantum cryptography. Fragmented regulations and supply chain disruptions further complicate the cybersecurity landscape, particularly for sectors reliant on internet-connected devices. KPMG advocates for 'radical transparency' in managing cyber risks and stresses the importance of proactive identity governance.