Hong Kong is entering a more challenging cybersecurity environment as artificial intelligence continues to transform both digital business and cybercrime. According to the Hong Kong Computer Emergency Response Team Coordination Centre, Hong Kong recorded 15,877 cybersecurity incidents in 2025, representing a 27 percent increase from the previous year.

The increase highlights how quickly cyber threats are evolving. At the same time, artificial intelligence is giving attackers new ways to automate activities, create convincing scams and identify potential weaknesses. Consequently, businesses need to rethink how they protect systems, employees and sensitive information.

AI Is Changing the Cybersecurity Landscape

Artificial intelligence is becoming an important part of the modern threat environment. Attackers can use AI technologies to create convincing phishing messages, analyse websites and automate parts of their operations. HKCERT has also identified agentic AI as an emerging concern because systems capable of taking actions autonomously could increase the speed and scale of cyberattacks.

This development is particularly important when considering current AI trends and insights. As AI becomes more capable, cybersecurity teams must prepare for threats that can adapt faster than traditional attacks.

Phishing Remains a Major Concern

Phishing continues to represent one of the most significant cybersecurity challenges in Hong Kong. HKCERT reported that phishing accounted for 57 percent of cybersecurity incidents recorded during 2025. The organisation also noted that generative AI is making phishing messages more realistic and difficult to identify.

Furthermore, phishing is no longer limited to traditional email. Attackers are increasingly using social media and instant messaging channels to reach victims. As a result, organisations need security awareness programmes that reflect how employees communicate in their everyday digital lives.

Generative AI Makes Social Engineering More Convincing

One of the most important Generative AI developments is its ability to produce highly personalised content quickly. Cybercriminals can potentially use these capabilities to create messages that appear relevant to a particular person, organisation or situation.

HKCERT has warned that AI can assist with phishing website creation and other attack activities. Therefore, employees can no longer rely only on spelling mistakes or unusual wording to identify fraudulent communication.

Instead, organisations need stronger identity verification, multi factor authentication and continuous employee awareness.

Agentic AI Creates New Security Challenges

Agentic AI represents another major area of concern. Unlike conventional AI systems that primarily provide information, agentic systems can potentially perform tasks and interact with digital environments.

HKCERT has highlighted scenarios in which agentic AI could be used to automate reconnaissance, exploitation and other stages of an attack. This could lower the barrier for attackers and allow smaller groups to conduct more sophisticated operations.

Consequently, security teams need to consider not only how AI generates information but also what actions AI systems are authorised to perform.

Machine Learning Can Also Strengthen Defence

Although AI creates new risks, it can also become an important defensive technology. Machine learning advancements can help cybersecurity teams analyse large volumes of network activity, identify unusual behaviour and prioritise potentially dangerous events.

AI can also support phishing detection and threat intelligence analysis. HKCERT itself has highlighted the use of AI based technologies to help identify suspicious phishing websites.

Therefore, the future of cybersecurity is unlikely to be about choosing between AI and traditional security. Instead, organisations will increasingly combine human expertise with intelligent security tools.

Automation Is Changing Cyber Defence

The growing importance of Automation and future tech is another significant development. Security teams already deal with enormous amounts of alerts and system information. Automated analysis can help identify patterns and reduce the time required to investigate potential threats.

However, automation must be implemented carefully. Excessive reliance on automated decisions can introduce new risks, particularly when AI systems have access to sensitive data or business applications. Human oversight should therefore remain an important part of cybersecurity operations.

Businesses Need Stronger AI Governance

The growth of AI also creates a need for clear organisational policies. Companies should understand which AI applications employees are permitted to use, what information can be entered into AI systems and how access should be controlled.

This is increasingly relevant to wider AI industry updates, as organisations move from experimentation toward deeper AI adoption. Strong governance can help businesses benefit from AI while reducing the possibility of accidental data exposure and unauthorised access.

Preparing for the Future of AI and Cybersecurity

The relationship between AI and cybersecurity will continue to evolve. Future of AI research is likely to produce more capable systems, while attackers will also explore new ways to exploit these technologies.

For Hong Kong businesses, preparation should therefore focus on resilience rather than simply reacting to individual incidents. Regular security testing, employee education, strong authentication, timely software updates and careful AI governance can create multiple layers of protection.

At the same time, organisations should monitor emerging threats and update their security strategies as technology changes. The 27 percent rise in reported incidents demonstrates why cybersecurity can no longer be treated as a purely technical responsibility.

Practical Insights for Hong Kong Businesses

The increasing number of cyber incidents provides a clear signal for businesses operating in Hong Kong. AI should be viewed as both a powerful defensive opportunity and an emerging source of risk.

Organisations can strengthen their position by combining AI enabled monitoring with human expertise, improving employee awareness and introducing clear controls around AI usage. Moreover, security teams should regularly assess whether existing protection can withstand increasingly automated and personalised attacks.

Ultimately, businesses that treat cybersecurity as an ongoing strategic priority will be better positioned to manage the changing digital environment. As AI continues to develop, strong security practices will become essential for protecting customer trust, business operations and long term digital growth.

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Source – hkcert