AI, economic and geopolitical issues drive surging middle market cyberthreats

Cybersecurity risk in the middle market is becoming more complex and harder to manage, with nearly 1 in 5 executives (18%) in RSM’s new special report saying their companies experienced a data breach in the previous year. The report details how artificial intelligence usage and AI-enhanced threats, as well as continued economic pressure and evolving risks, are reshaping cybersecurity strategies.

The findings from the RSM US Middle Market Business Index survey—fielded in the first quarter of 2026—come as the middle market faces persistent challenges from threat actors that are arguably more active and dangerous than ever. The results show that companies are mainly focusing their resources on detection and response (39%), securing the cloud (36%), and strategy and risk management (35%), but digital identity represents a significant missed opportunity where companies can sharpen their focus on emerging threats.

A few of the report’s key findings:

Most threat actors don’t break in. They log in. When identity controls and permissions are weak, attackers don’t need exploits. As organizations adopt AI, those same gaps scale faster, because AI will act on any access it’s given, intended or not.

Alden Hutchison, Principal, RSM US LLP

RSM risk professionals caution companies about a new level of cyberthreats—mainly attributed to expanding AI use—but survey respondents almost universally feel confident in their current measures to safeguard data.

Access the full report now to learn more about the survey findings and related insights, including:

• Respondents’ perspectives on cybersecurity budgets and staffing

• Approaches to AI governance amid accelerating risks

• The evolution of cybersecurity strategies as new threats emerge

• Why a strong digital identity approach has never been more important
• How cloud deployments are maturing but require further attention
• Why persistent risks emphasize the importance of business continuity and incident response strategies

Confidence isn't the same as preparedness. I see a lot of gaps in incident response engagements with organizations that have good tooling but no rehearsed decisions or framework.

Rich Servillas, Director, RSM US LLP