Business of Tech: Daily 10-Minute IT Services Insights

AI Hype vs. Reality: Cybersecurity Threats Rise, MIT Study Withdrawn, and CMMC Compliance Looms

Nov 5, 2025

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The Pentagon is preparing to enforce the Cybersecurity Maturity Model Certification (CMMC) requirements for small businesses, with compliance becoming mandatory in contracts starting November 10, 2025. Nearly 500 organizations have already achieved Level 2 certification, and the Defense Department is actively surveying small businesses to assess their readiness for these new standards. This initiative is expected to extend beyond Department of Defense contractors, potentially influencing other federal agencies and international partners to adopt similar cybersecurity measures.

Recent reports highlight a concerning rise in cybersecurity threats, particularly in mobile attacks and ransomware incidents. According to the Verizon 2025 Mobile Security Index, 85% of organizations have reported increased mobile attacks, with 38% identifying AI-powered ransomware as a growing concern. Despite the widespread use of generative AI tools, only 17% of organizations have implemented specific security measures to counter AI-assisted attacks. Additionally, a report from Sophos indicates that 58% of retailers impacted by ransomware opted to pay the ransom, with the median demand doubling to $2 million.

The episode also discusses the withdrawal of a controversial MIT Sloan paper that claimed 80% of ransomware attacks involved artificial intelligence, following criticism from cybersecurity experts. This incident underscores the issue of "AI-washing" in the cybersecurity sector, where unverified claims are made to attract attention. MSPs are advised to scrutinize such claims and focus on proven security practices rather than hype-driven narratives.

For Managed Service Providers and IT decision-makers, the key takeaway is the importance of compliance and foundational cybersecurity practices. As the CMMC requirements loom, MSPs should consider developing readiness packages and tightening documentation processes. Additionally, the ongoing rise in lawsuits related to the Americans with Disabilities Act (ADA) highlights the need for businesses to prioritize compliance as a critical aspect of risk management, reinforcing that effective cybersecurity and legal compliance are essential for sustainable operations.

Four things to know today

00:00 The Cyber Threats Are Real — But It’s Not AI Geniuses, It’s the Same Old Tricks Getting Smarter

05:05 MIT’s Big AI-Ransomware Claim Falls Apart — Turns Out the Data Didn’t Hold Up

07:09 The Pentagon’s Rolling Out CMMC — and Small Businesses Are Feeling the Pressure on All Fronts

10:27 Everyone Wants to Be Your Platform — New MSP Tools from Cisco, Barracuda, and WatchGuard Show Why

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