Fitch Warns AI Will Create More Cyber Vulnerabilities Before It Solves Them

"AI Use in Cybersecurity Could Show Holes in Short Term, Says Fitch" – Insurance Journal, April 16, 2026

Just days after the IMF warning, Fitch Ratings – one of the world's leading credit rating agencies – released its own analysis of AI and cybersecurity. Their conclusion: In the short to medium term, AI will create more vulnerabilities than it fixes .

What Did Fitch Say?

Let me break down their key points in simple language:

Point 1: AI lowers the barrier for attackers

Fitch explained: "Traditional vulnerability analysis was labor-intensive and offered limited financial upside for researchers, a gap AI now fills at scale and speed" .

In plain English: Finding security holes used to take a lot of time and effort. Hackers might not bother because the payoff was uncertain. Now, AI can find holes quickly and cheaply. That means more attacks.

Point 2: This will "materially increase attack volume"

AI will not just make attacks easier – it will make them more common. More attacks mean more victims .

Point 3: Third-party risks are expanding

Even if your bank is secure, the companies it works with (vendors, partners, service providers) may not be. AI attacks can target these weaker links.

The Cyber Insurance Market Is Growing

Here is an interesting detail: US cyber insurance premiums grew by 11% in 2025, with policies-in-force up 35% .

Why? Because businesses are waking up to the threat. Boards and management teams now recognize that "cyber events can disrupt operations, trigger legal liabilities, and impair revenue even when direct financial losses are limited" .

What This Means for You

The experts are telling us that cyber attacks are going to increase. AI is making it easier for criminals. And even though technology will eventually help defend against these attacks, in the short term, "vulnerabilities will probably outnumber patches" .

Step-by-Step Solutions

Step 1: Treat cybersecurity as an ongoing process, not a one-time setup. Threats evolve. Your defenses must evolve too.

Step 2: Be especially careful with "third-party" financial services. If a loan app partners with another company for data processing or payments, that partner is a potential weak link.

Step 3: If you own a small business, take cyber threats seriously. The data shows that smaller companies lag behind in cyber protection . Do not be one of them.

Step 4: Regularly update all your devices and apps. Many attacks exploit known vulnerabilities that have already been patched – but only if you install the updates.

Step 5: Consider cyber insurance if you run a business that handles customer financial data. The market is growing because the need is real.