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For the first time, AI, including tools such as LLMs, has overtaken ransomware as the most pressing issue, emerging as the top concern for security leaders, according to the State of Cybersecurity: 2025 Trends Report, published by Arctic Wolf and conducted by Sapio Research. While organizations are making substantial cybersecurity investments, the report also highlights persistent challenges such as limited visibility, outdated incident response plans, and budget pressures.
“Arctic Wolf’s 2025 Trends Report offers a telling snapshot of how security leaders are thinking,” says Dan Schiappa, president, technology and services, Arctic Wolf. “AI’s rapid emergence is creating new uncertainty, not only in how attackers operate but also in how defenders must respond. At the same time, ransomware remains a persistent and costly threat. As organizations race to implement AI-powered tools, it is critical they also do not lose sight of core security fundamentals like patching vulnerabilities, implementing detection and response, and maintaining a current incident response plan.”
Key takeaways:
- 29% of security leaders cited AI, LLMs, and privacy issues as their number one concern, surpassing ransomware, malware, and data extortion (21%).
- 52% of respondents confirmed a breach in the past year (up from 48%), with 97% of known breaches disclosed. This indicates progress in regulatory compliance and incident transparency.
- 70% of organizations experienced at least one significant cyberattack in 2024, with malware and business email compromise being the most common.
- Among those hit by ransomware, 76% paid. Of those, 90% engaged a professional negotiator, which led to reduced payments in more than half of the cases.
- While 84% use next-generation endpoint security solutions, only 40% say they have 100% coverage and expect to maintain it.
