The cyberthreat landscape is evolving at breakneck speed. The challenges businesses face, the way budgets are allocated and the expectations clients place on their providers are all shifting. To understand how organizations are adapting, we surveyed SMBs and MSPs to uncover where the greatest cybersecurity pressures — and opportunities — lie.
The 2026 Kaseya Cybersecurity Outlook Report reveals how organizations are preparing themselves to respond to escalating threats, their biggest security concerns and how they’re using AI to enhance their security posture. It also highlights what MSPs need to know about their clients’ changing priorities and how to align their services to better serve clients.
Here are the key insights from the report.
The human factor remains the weakest link
Businesses see human error and social engineering (29%) as their biggest threat vectors in the next 12 months. Our survey reveals that this vulnerability is driven by poor user practices (30%), lack of end-user training (29%) and limited cybersecurity expertise (27%), which remain the leading causes of cyber incidents.
The findings also reveal that security awareness culture is weak, with one in three organizations offering security training only once a year or less. Building a strong cybersecurity culture through regular training and expert guidance is critical to keeping businesses safe.
Phishing is still the No. 1 cyberthreat to businesses
Phishing continues to reign as the most damaging and persistent cybersecurity threat. Our survey found that 68% of businesses expect to fall victim to a phishing attack in the next 12 months — a clear sign of how relentless these attacks have become.
The inbox is the new battleground. More than half of businesses (56%) have been hit by phishing attacks over time, and nearly half (49%) have suffered one in the past year alone. Phishing has even surpassed other surveyed threats like viruses and malware (32%) and business email compromise (27%).
As attackers grow more sophisticated, email remains both the most common entry point and the biggest opportunity for AI-powered defenses to make a real impact.
Downtime and losses due to cyber incidents keep rising
Cyber incidents are more than IT disruptions — they can shut down an entire business. When defenses fail, the impact is immediate and costly. Four in ten organizations faced at least one full day of downtime after a breach, grinding operations to a halt and leaving lasting damage.
In an always-on business environment where every second matters, security incidents can result not only in lost productivity but also lost trust and lost revenue. Nearly 20% of businesses lost $100,000 or more in a single cybersecurity incident.
AI adoption is growing, but not without fear
AI adoption among organizations is growing; however, more than 80% of businesses say human oversight is required. This creates a trust gap that limits AI’s full potential. In fact, only 12% fully trust AI to operate autonomously.
Currently, AI is most widely used in email security (49%), enhanced endpoint protection (34%), and threat detection and anomaly identification (32%). Still, concerns around accuracy (29%), data privacy (27%) and cost (19%) continue to hold many back.
AI has clearly become a powerful ally in the fight against cybercrime, but many still see it as a partner, not a replacement.
Security budgets are increasing
Security budgets are growing steadily but cautiously. Most organizations allocate 10%–50% of their IT budgets to security, with the majority of the spending leaning toward the lower end. This shows that while cybersecurity is mission-critical, it still competes with other IT priorities.
Almost 50% of businesses plan to increase their cybersecurity budgets in the next 12 months, with 68% expecting modest growth of 5%–25%.
Access the full findings
Get the complete picture of today’s evolving cybersecurity landscape. The 2026 Kaseya Cybersecurity Outlook Report dives deeper into how businesses and MSPs are tackling the most pressing challenges — from ransomware and threat monitoring to cyber insurance and incident response planning. Download the full report to uncover the insights shaping tomorrow’s cybersecurity landscape, and learn how to guide your clients securely through 2026 and beyond.
