AI, Geopolitics, Cyber Fraud: WEF Study Outlines The Dangerous Triad Putting World At Risk In 2026

The new year began with a fresh set of geopolitical risks for the global economy and markets with US' attack on Venezuela. Ever since the Russia-Ukraine war in 2022, geopolitical risks have risen tremendously in the world. However, experts believe in the age of new technological advancements overtaking the world order, the risks for the global economy has increased tend-folds with the ongoing geopolitical turmoil.

Artificial intelligence, geopolitical fragmentation and a surge in cyber-enabled fraud have redefined the global cyber risk landscape at an unprecedented speed. According to the World Economic Forum’s Global Cybersecurity Outlook 2026, cyber-enabled fraud is now a pervasive threat for the world.

The shift underscores the growing societal and economic impact of fraud as it spreads across regions and sector said the WEF report, developed in collaboration with Accenture. AI is supercharging both offensive and defensive capabilities, said the report, adding that the geopolitical fragmentation further compounds these risks, reshaping cybersecurity strategies and widening preparedness gaps across regions.

“As cyber risks become more interconnected and consequential, cyber-enabled fraud has emerged as one of the most disruptive forces in the digital economy, undermining trust, distorting markets and directly affecting people’s lives,” said Jeremy Jurgens, Managing Director, WEF.

“The challenge for leaders is no longer just understanding the threat but acting collectively to stay ahead of it. Building meaningful cyber resilience will require coordinated action across governments, businesses and technology providers to protect trust and stability in an increasingly AI-driven world,'' added Jurgens.

Hence, AI, geopolitical fragmentation, and capability gaps are intensifying cyber risks across sectors and regions, prompting a fundamental rethinking of how systemic resilience must be built in an increasingly complex and volatile environment, said the WEF study.

According to WEF, the gap between highly resilient organizations and those falling behind remains stark, with skills shortages and resource constraints amplifying systemic risk. Global supply chains have become more interconnected and opaque, turning third-party dependencies into systemic vulnerabilities. The dynamics are converging at a moment when inequalities in cyber capabilities are widening, leaving smaller organizations and emerging economies disproportionately exposed.

“The weaponization of AI, persistent geopolitical friction and systemic supply chain risks are upending traditional cyber defences,'' said Paolo Dal Cin, global lead, Accenture Cybersecurity. “True business resilience is built by fusing cyber strategy, operational continuity and foundational trust—enabling organizations to swiftly adapt to the dynamic threat landscape.”

The WEF report identifies the key factors that shape the evolving cyber landscape of 2026. The growing dominance of AI, persistent geopolitical turmoil, and cybersecurity fraud have emerged as top threats.

AI-related vulnerabilities rose faster than any other category in 2025, with 87% of respondents reporting an increase. Data leaks linked to generative AI (34%) and advancing adversarial capabilities (29%) are among the leading concerns for 2026. 

Meanwhile, 94% of leaders expect AI to be the most consequential force shaping cybersecurity in 2026. Organizations are responding, nearly doubling the share assessing AI security, from 37% to 64%.

64% of organizations now factor geopolitically motivated attacks into their risk strategies and 91% of the largest enterprises adjust their cybersecurity posture accordingly. 31% of respondents expressed low confidence in their country’s ability to manage major cyber incidents. Confidence levels vary widely, from 84% in the Middle East and North Africa to 13% in Latin America and the Caribbean.

A striking 73% of respondents were or knew someone directly affected in 2025 and CEOs now rank fraud and phishing ahead of ransomware as their top concern. Supply chains remain a major systemic vulnerability. Among large companies, 65% cite third-party and supply chain risks as their greatest cyber resilience barrier, up from 54% last year.

Concentration risk is also intensifying, with incidents at major cloud and internet service providers demonstrating how infrastructure-level failures can trigger widespread downstream impacts across interconnected digital ecosystems.

Cyber inequity is widening across regions and sectors. The smaller organizations are twice as likely to report insufficient resilience compared to large firms. Regionally, the shortage of cybersecurity talent is most pronounced in Latin America and the Caribbean, with 65% of organizations reporting insufficient skills to achieve their security objectives, while 63% of organizations in sub-Saharan Africa face similar constraints.

The report calls on leaders across sectors to move beyond isolated efforts and commit to raising the collective baseline by sharing intelligence, aligning standards and investing in the capabilities needed to ensure all organizations can benefit from a more secure and resilient digital environment.

Experts believe advances in AI are transforming how businesses operate and how people live and work. When deployed responsibly, these technologies can strengthen cyber defences by supporting faster detection and response.

''But if misused or poorly governed, they can also introduce serious risks, from data leaks to cyberattacks,” said Josephine Teo, Minister for Digital Development and Information and Minister-in-Charge of Cybersecurity & Smart Nation Group, Singapore.

“Governments therefore need a forward-looking and collaborative approach to ensure AI enhances cyber resilience while minimizing risks that increasingly transcend borders,'' added Teo.