Cybersecurity in 2026: What to Expect

What trends can we expect from cybersecurity in 2026? In tech terms, these are exciting, although uncertain, times. AI is advancing at a rapid pace, becoming more integrated into our lives and helping us do more and achieve more. The pros and cons of that are well documented elsewhere, but one overwhelming effect is that cyber attackers are innovating faster than organisations can respond.

Hackers now have access to automated, persistent, and frighteningly efficient AI tools that are no longer human-driven. AI-driven attacks will dominate cybersecurity in 2026, leaving little time for organizations to adapt. We must prepare a secure business environment with no weak links.

The State of Cybersecurity in 2026

These will be some of the features and talking points of cybersecurity in 2026.

AI Agents Will Be a Major Attack Vector

An AI agent is a software system that operates autonomously. It learns on the job and makes its own decisions without an operator to guide it. Cybercriminals don’t need to rely on human actions to – their agent will run it for them.

In 2026, expect AI agents to:

• Probe networks nonstop, scanning for vulnerabilities as they emerge
• Launch tailored phishing attempts through email, SMS and collaboration platforms
• Move laterally inside cloud environments, exploiting permissions or configuration gaps

They can do all of this at scale, without sleep or hesitation. Autonomous digital ‘workers’ will run every phase of the attack – reconnaissance, weaponisation, command and control.

AI Will Also Be Our Best Defence

Attackers won’t be the only ones with AI on their side – defensive systems are evolving and getting smarter every day. Businesses can harness these to fortify their business environment – Microsoft Defender, for example, uses AI for advanced threat detection, response and security posture management.

Platforms like Defender will use AI agents to:

• Predict unusual behaviour before a breach
• Block suspicious actions automatically
• Contain compromised devices or accounts in seconds
• Recover systems faster after a disruption

AI gives cybersecurity quick reflexes. If you don’t have it on your side in 2026 and can’t identify threats quickly and act automatically, you’ll get breached before you even notice it.

Identity-Based Attacks Will Surge

Identity is the biggest battleground for hackers, and that’s only going to further take hold in 2026.  It’s easier to log in than break in, which is why hacking efforts are heavily focused on compromising people’s identities through avenues like stolen credentials, social engineering and AI-powered impersonation.

Accessing an environment through a compromised identity doesn’t throw up any red flags – the hacker has legitimate access to all the systems, apps and files the user has access to.

Single sign-on (SSO), conditional access, and privileged identity controls are going to be crucial to combating this in 2026. So is staff awareness and training – the sharper your team is around cybersecurity, the less chance human error will be the cause of a breach in your defences.

The Password Era – Drawing to a Close?

The password has been an essential cornerstone of cybersecurity in years gone by. It’s a concept not without its problems, because users forget them, re-use them, share them or pick ones that are easy to hack. As a result, although they are still pretty ubiquitous, we’re slowly moving away from them.

Passkeys, biometrics and hardware-backed authentication are taking over, and you can expect to see more of this in 2026. Identity verification will become the defining control of the next security era. If all you rely on is a password to keep hackers out of your business environment, it’s only a matter of time before you’re found out.

Human Error Will Still Be a Major Cause of Breaches

AI will be driving the attacks, but it’s humans who will open the door to them.

Clicking a malicious link, approving an MFA prompt without checking, or sending information to the wrong place. These are all easy to do, especially by busy team members with a lot on their plates.

Attackers to lean into this more in 2026. With AI, they can craft messages that look local, urgent, emotionally timed and personal. Generic phishing campaigns feel like a familiar and engaging conversation – clicking the link seems like the right thing to do.

To counter this, your organisational training needs to evolve to match the real-world situation. It should include hands-on awareness, scenario-based education and accurate simulations. It’s not a one-off thing either – training needs to be ongoing, keeping your team alert and updated at all times.

Compliance and Audit Pressure Will Increase

Security obligations aren’t softening. Governments, insurers, and your customers are demanding proof of your cybersecurity efforts, and their standards are getting higher all the time.

Over the coming year, expect to see more

• Documented risk assessments
• Vendor and supply chain assurance
• Demonstrable employee cyber hygiene
• Evidence of cyber maturity when tendering for a contract

With cybersecurity becoming a market requirement, you don’t want to lock yourself out of opportunities. At Smile IT, we recommend the ‘Essential Eight’ cybersecurity strategy advocated for by the Australian Cybersecurity Centre. Aligning with the Essential Eight risk management framework provides your business with a powerful baseline of security. It helps you meet the expectations of stakeholders and remain compliant with government regulations.

Ask our team for more information about it.

How to Prepare Your Organisation for 2026

If you’re going to stand strong in the cybersecurity jungle 2026 delivers, what do you need to do? We mentioned the Essential Eight above as a great starting point – it will help give you a clear direction of channel, covering important areas like:

Stronger Identity Security

Enforce multi-factor authentication everywhere, apply conditional access by default and lock down privileged accounts. Reducing trust will help you reduce exposure.

AI-Enabled Security Operations

Move beyond passive monitoring with modern SOC tools that can analyse behaviour and respond to incidents automatically. Your systems need to be able to act without waiting for a human.

Resilient, Tested Backups

Backups need to be isolated and verified, and recovery needs to be rehearsed and seamless. This is your safety net when all else fails.

User Training That Matches Modern Threats

Educate people with simulations that reflect real scenarios. Move away from theoretical training and towards personalised, believable situations that teach users how attackers think.

Vendor Management Discipline

Every integration expands your attack surface. You need to understand what programs are in use and how critical they are. Streamlining to a single stack like Microsoft 365 could help reduce your vulnerability.

Smile IT – Your Cybersecurity Partner

There’s not going to be one new threat when it comes to cybersecurity in 2026 – it’s going to be an explosion of AI-fuelled forces. If you want to operate with confidence, your business needs to be ready for it.

Don’t get left scrambling for solutions when the damage is already done. Let’s review your cyber-readiness and explore how to turn your business environment into a fortress with AI-enabled protection.

Contact Smile IT today to secure your business against 2026’s AI-driven threats.