Artificial Intelligence in Cyber Risk Management: Revolutionizing Threat Detection and Resilience

As the cyber threat environment evolves more sophisticatedly and at a greater scale, traditional measures remain inadequate. Thus, this chapter explores how artificial intelligence can transform cyber risk management (CRM) by delivering dynamic, scalable, and proactive approaches to detect, prevent, and respond to cyber threats. It therefore also considers the integration of AI technologies, including machine learning, natural language processing, and predictive abilities, for better detection of threats, response to incidents, and risk assessment. Furthermore, this chapter discusses how AI can provide a 78 faster incident response capability through more precise threat detection and scalability to address issues, including evolving ethical considerations, data privacy, and resource constraints. Future leaps, such as AI joining hands with quantum computing and federated learning, will transform CRM by enabling firms to take an active role in managing risks and building cyber resilience. This chapter highlights the need for teamwork across fields, new rules, and the use of ethical AI to ensure that strong and smart practices for managing cyber risks are in place.