A new survey conducted by Edelman Intelligence for Nationwide reveals that nearly one-third of small and mid-market business owners have been targeted by a scam or fraud attempt using generative AI in the past year. The 2026 Nationwide survey, fielded July 10-26, 2026, highlights a growing gap between the rapid adoption of AI tools in the workplace and the implementation of cybersecurity measures to protect against related threats.
According to the findings, six in 10 business owners say employees are using public AI chatbots or writing tools for work-related tasks. However, only 36% report having written policies governing employee AI use, and just 37% provide training on responsible use. This lack of oversight is compounded by the fact that more than a third of business owners believe employees are using unauthorized AI tools for work.
The risks are not just internal. The survey found that 31% of businesses had been targeted by AI-enabled scams, which can include convincing phishing emails, phone calls, or content that appears to come from trusted sources. Only 35% of business owners have an up-to-date incident response plan, leaving many unprepared to handle the aftermath of a cyber incident.
Inter Insurance Agency, an insurance provider based in Jericho, NY, says the findings underscore the need for businesses to adapt their risk management strategies. “AI has become incredibly accessible, both to legitimate businesses and to the people trying to exploit them,” said Tim Derham of Inter Insurance Agency. “An employee can receive an email, phone call or even convincing content that appears to come from someone they trust. Businesses need to think about what happens before an attack, but also what happens afterward.”
Cyber insurance can be a critical component of a broader risk-management strategy. Depending on the policy, coverage may help address expenses associated with data breaches, cyberattacks, business interruption, recovery efforts, and certain liabilities resulting from a cyber incident. However, insurance alone is not enough. Inter Insurance Agency encourages businesses to establish clear policies regarding the use of AI tools, train employees to recognize phishing and impersonation attempts, control access to sensitive information, and maintain an incident-response plan. Businesses should also periodically review their cyber insurance as their operations and technology use change.
“The way companies work is changing extremely quickly,” Derham added. “Your risk management and insurance shouldn’t be based on what your business looked like three or four years ago.”
For businesses seeking to navigate these evolving risks, working with a knowledgeable insurance partner can help. Inter Insurance Agency provides insurance solutions designed to help businesses and individuals manage risk and protect the assets they depend on.
