AI: A double-edged sword of innovation and risk

Core Insights - The adoption of AI by hackers poses a significant threat to the B2B payments ecosystem, overshadowing discussions about AI's impact on jobs and productivity gains [1] Fraud Statistics - 41% of fraud attacks are reported to be AI-powered, costing companies millions annually, with most businesses able to recover less than 10% of stolen funds [2][3] - B2B financial crime accounts for nearly a third of global fraud costs, totaling approximately $1.6 trillion annually, while the total global cost of fraud approaches $5 trillion per year [3] Techniques and Trends - Cybercriminals are utilizing advanced techniques such as creating convincing fake invoices and employing deepfake technology to impersonate executives, leading to significant financial losses [4][5] - In the US, over 105,000 deepfake-related attacks occurred last year, indicating a massive increase in such incidents [5] Industry Response - The rise of AI-powered fraud has led to the emergence of a new career path for hackers, with advertisements seeking individuals skilled in business extortion [6] - Traditional fraud techniques have been automated and scaled through AI, increasing vulnerability in B2B transactions, which, while beneficial for transparency and convenience, have also exposed systems to cybercriminals [7]