CybExer forecasts AI wars & quantum-era cyber risks

CybExer has set out a series of predictions for the cyber security landscape in 2026, warning of major shifts in cyber insurance, quantum-era encryption risk and the impact of artificial intelligence on both attackers and defenders.

The Tallinn- and London-based cyber range specialist outlined three main themes. It pointed to changing approaches in cyber risk management, growing attention on quantum-safe security, and a new phase in what it described as emerging "AI wars" in cyber defence.

The company said it expects demand for advanced cyber defence to rise as more countries treat digital infrastructure as a core part of national security. It recently entered a strategic partnership with Turkish defence firm Havelsan, which focuses on cyber training and simulation.

Insurance under pressure

CybExer forecasts a shift in cyber insurance from a model centred on post-incident cover towards one that places greater emphasis on preparedness. The company links this to wider attack surfaces and a continued increase in claims.

Insurers are expected to re-examine how they assess cyber risk. The company argues that organisations will come under more pressure to show how they manage vulnerabilities and how they train staff, rather than relying on insurance as a backstop.

CybExer describes a "dual approach" in which prevention and protection sit side by side. It expects insurers to scrutinise security controls more closely and for buyers of cover to face more detailed questions on their cyber readiness.

Quantum threat focus

The company also predicts a stronger focus on the security implications of quantum computing. It expects wider recognition that today's cryptographic algorithms may face new forms of vulnerability as quantum technologies develop.

The finance sector is expected to play a visible role. CybExer anticipates rising interest among financial institutions in using quantum computers within live-fire exercise environments. The aim is to test systems against quantum-related attack techniques and to assess how existing infrastructure responds under stress.

Across industries, the firm expects more discussion of how quantum computing could undermine traditional encryption methods. It says organisations will need to assess current cryptographic inventories and start planning transitions towards quantum-resistant schemes.

AI-driven attacks

CybExer expects the cyber security industry's debate on artificial intelligence to move beyond concerns about more sophisticated attacks. It forecasts that the primary concern will shift towards AI's role in lowering barriers for threat actors.

The company highlights the spread of pre-built frameworks that package attack techniques for reuse. It says these tools can allow less skilled individuals to launch cyber attacks without deep technical knowledge.

It also notes that this trend raises ethical questions in early-stage talent management. Organisations that train people on AI and security will face additional responsibilities in how they oversee the use of that knowledge.

CybExer predicts an increase in insecure systems as organisations rush to integrate AI features for competitive reasons. It warns that rapid implementation can create new security gaps, which then become fresh attack surfaces for adversaries.

Daz Preuss, Chief Operating Officer (UK) at CybExer, said the industry faces a turning point in this area. "Next year, organisations will start to realise that adopting AI-driven security solutions won't suffice, they also need to train their teams to respond to AI-enabled attacks. It will become increasingly critical for defenders to understand the capabilities of AI in enabling cyberattacks - and how these same technologies can be harnessed for protection, marking the onset of what some are calling the 'AI wars.' The ability to leverage AI effectively and equip teams to simulate and analyse AI-driven attack scenarios will be a main differentiator in staying ahead of emerging threats in 2026," said Preuss.

New defence tools

CybExer has begun work on an AI-enabled Active Cyber Defence Solution that it says will change how organisations prepare for and respond to cyber threats. The project combines artificial intelligence with offensive cyber tools. It also draws on the company's cyber range platforms.

A central element of the work is the use of AI within cyber ranges. CybExer already focuses on simulated environments that mirror real-world networks and systems for training and exercises.

The company says it has developed AI-driven cyber range technology and tools for AI-based cyber defence and AI warfare. It claims a unique position in this niche at present.

CybExer leads the project and draws on its experience in cyber exercises and training. Partners include CR14, a state-established cyber competence centre that runs multiple NATO-level cyber ranges, and the Cyber-Defence Campus of armasuisse.

CybExer and the Cyber-Defence Campus have worked together over several years on the use of artificial intelligence in demanding defence-related scenarios. The company expects that work on AI-enabled cyber ranges to expand as organisations look for new methods of testing defences against emerging threats in 2026.