Cyprus reports cyber risks of AI and quantum computing in 2026
The Cypriot publication Cyprus Mail reported on KPMG’s Cybersecurity considerations 2026 report, which names the rapid adoption of artificial intelligence, geopolitical tensions and the prospect of quantum computing as factors complicating cyber protection for businesses. The document identifies eight priorities for organizations, as cybersecurity is becoming increasingly closely linked to resilience, innovation and growth.
The report is based on the findings of more than 20 KPMG cybersecurity specialists from different countries, as well as senior executives from Google, Microsoft, Palo Alto Networks and ServiceNow. KPMG noted that the spread of AI, fragmented regulation, supply chain disruptions, hyperconnectivity and the emergence of non-human identities are changing the responsibilities of chief information security officers.
AI and non-human identities
The report describes artificial intelligence as a technology with a dual effect. Security teams can use it to detect threats and respond to them faster and more effectively. At the same time, malicious actors can use AI to automate and scale attacks, as well as develop more sophisticated methods of bypassing defenses.
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The spread of agentic AI and digital agents increases the need to control non-human identities, including AI agents, service accounts and machine credentials. According to KPMG, automated environments already contain more such identities than human users. Organizations therefore need to review identity management throughout the lifecycle of people and machines.
Post-quantum cryptography and infrastructure
KPMG considers the emergence of quantum computers capable of breaking current encryption to be a separate medium-term cyber risk. The transition to post-quantum cryptography will require significant changes in organizations. KPMG noted that countries are developing recommendations and rules for switching to new encryption methods, while the financial and defense sectors may face an existential threat if they do not prepare for quantum risks.
Among other priorities for 2026, KPMG named protecting AI systems, continuous threat detection in complex supply chains, strengthening resilience and complying with regulatory requirements amid geopolitical changes. Enterprises in the energy, oil and gas, mining, manufacturing and telecommunications sectors are particularly vulnerable due to their use of internet-connected devices.
