Allianz Risk Barometer: AI Surges as Cyber Tops Business Risks Again

Cyber threats continue to be a major concern for businesses worldwide, topping the list of global corporate worries for the fifth consecutive year, as revealed by the Allianz Risk Barometer 2026. This year, cyber incidents hold the number one spot, with artificial intelligence (AI) making a significant jump to second place. For professionals in the electronics, embedded systems, industrial automation, and digital infrastructure sectors, these findings provide valuable insights into the evolving landscape of technology-driven risks and the shifting priorities in boardrooms.

The dominance of cyber incidents is evident, representing 42% of responses globally, the highest score ever recorded in the survey. Ransomware attacks remain a pressing issue, with cyber risk now taking the lead in every region, including Europe, the Americas, and Asia Pacific. Allianz attributes this trend to the increasing digital reliance, changing regulations, and geopolitical factors, emphasizing the vulnerability of smaller and mid-sized companies with limited cybersecurity resources.

Michael Bruch, Global Head of Risk Consulting Advisory Services at Allianz Commercial, highlights the evolving nature of cyber risk, noting the growing reliance on third-party providers for critical data and services. He points out that while large enterprises have bolstered their defenses, the emergence of AI is amplifying threats, expanding the attack surface, and introducing new vulnerabilities to organizations of all sizes.

The most notable shift in the 2026 ranking is the surge of AI from tenth place to second place, capturing 32% of responses. The rapid adoption of generative and agentic AI systems has raised concerns surrounding liability, governance, and system reliability. Despite these apprehensions, nearly half of respondents believe that AI offers more benefits than risks to their respective industries.

Ludovic Subran, Chief Economist at Allianz, emphasizes the multifaceted nature of AI, describing it as both a strategic opportunity and a source of operational, legal, and reputational risks. He points out that the pace of AI adoption is outstripping governance, regulation, and workforce readiness, underscoring the need for a comprehensive approach to managing the risks associated with AI technologies.

While business interruption risk slips to third place globally, it remains closely intertwined with geopolitical tensions and supply chain vulnerabilities. The rise of political risks and violence to seventh place reflects the impact of ongoing conflicts, trade barriers, and protectionist policies on businesses. Allianz reports that trade restrictions now affect nearly 20% of global imports, prompting companies to reconsider their supply chain strategies through friendshoring and regionalization.

Thomas Lillelund, CEO of Allianz Commercial, summarizes the complex risk landscape facing businesses in 2026, characterized by volatility and uncertainty. As companies navigate the fast-changing environment, the interplay of cyber threats, AI advancements, geopolitical dynamics, and supply chain disruptions underscores the need for proactive risk management strategies to safeguard against potential disruptions and ensure business resilience.