A growing number of UK companies are hitting pause on critical digital initiatives, and the reason is more than just budget constraints or staffing issues. A new report reveals that fears over state-sponsored cyberattacks are forcing businesses to rethink their entire digital strategy.
According to Armis’ newly released 2025 Cyberwarfare Report, nearly half of all UK-based organizations surveyed have experienced delays or disruptions to ongoing digital projects because of escalating threats tied to nation-state cyber activity. The findings come from a study of more than 1,800 global IT decision-makers, including 501 from the UK.
What’s more alarming is that 47% of UK firms admitted they’ve already been targeted by such attacks and have reported the incidents to authorities. The growing frequency of these threats is pushing many companies to reevaluate their supplier relationships altogether. In fact, 68% said they are reconsidering partnerships and vendors due to increasing geopolitical tensions.
These tensions aren’t abstract. The report highlights specific countries considered to be major cyber adversaries by UK organizations — including China, Russia, and North Korea. These states are known for launching targeted, often highly sophisticated attacks aimed at disrupting critical infrastructure, harvesting sensitive data, or simply undermining national stability.
What’s new in 2025 is the increasing role of artificial intelligence in this modern battlefield. A staggering 73% of IT leaders said they are worried about foreign threat actors using AI tools to enhance their cyberattack capabilities. That concern isn’t without merit. With AI, the barriers to launching complex and damaging cyber operations are lower than ever. Attackers no longer need to rely solely on large teams or expensive infrastructure — AI enables them to scale faster, exploit vulnerabilities with precision, and automate attacks at a level that traditional defenses struggle to match.
The report points to a major shift in mindset across UK organizations. Last year, cyberwarfare was seen as a rising concern. This year, 88% of respondents said they’re actively worried about the impact of nation-state threats on their organizations — marking a 32% jump in concern from just a year ago.
Armis researchers argue that this isn’t just a temporary trend — it’s a reflection of a deeper shift in how warfare is waged in the digital age. Cyberwarfare, they note, has become one of the most cost-effective and far-reaching ways to conduct hostile operations from a distance. And with AI now in the mix, traditional security strategies simply can’t keep up.
The good news, the researchers suggest, is that AI can also be used on the defensive front. Companies that embrace AI-powered security systems and real-time cyber exposure management will be better positioned to respond to threats as they emerge — rather than reacting after the damage is done. Moving from reactive to proactive cybersecurity is no longer just a best practice — it’s becoming a necessity.
As geopolitical conflicts grow more complex and cyber threats continue to evolve, the need for integrated, AI-driven defense systems is clear. For many UK organizations, the decision to delay digital projects may be prudent in the short term — but in the long term, investing in next-gen cybersecurity may be the only way forward.
