A new report reveals AI is transforming virtual CISO services, cutting manual workloads by 68% as adoption skyrockets 319% year-over-year. Small businesses drive record demand for outsourced security leadership, with AI enabling providers to scale strategic guidance while boosting margins and client retention.
Once reserved for Fortune 500 companies, executive cybersecurity leadership is now mission-critical for small and mid-sized businesses (SMBs) battling sophisticated threats and regulatory pressures. According to Cynomi's 2025 State of the vCISO Report, demand for virtual Chief Information Security Officer (vCISO) services has exploded—with 79% of managed service providers (MSPs/MSSPs) reporting high SMB interest. Adoption rates confirm this seismic shift: vCISO offerings among providers surged 319% in just one year, jumping from 21% in 2024 to 67% in 2025.
"vCISO services transform providers into trusted strategic partners, not just vendors," the report emphasizes, highlighting concrete business benefits including 40% higher margins, 41% improved upsell rates, and 39% expanded customer bases.
Figure 1: Demand for Advanced Cybersecurity Services Among SMB Clients (Source: Cynomi)
The operational barriers that once slowed adoption—profitability concerns (35%), upfront investment (33%), and skills shortages (32%)—are being dismantled by AI. A staggering 81% of providers now leverage AI in vCISO delivery, automating tasks like compliance monitoring, risk assessments, and remediation planning. The efficiency gains are dramatic:
- Average manual workload reduction: 68%
- 42% of providers report 81-100% drop in manual efforts
- 15% more plan AI adoption within 12 months
"AI enables teams to support more clients without compromising quality," notes the analysis, with automation accelerating reporting, task prioritization, and policy deployment. 
Figure 2: Business impact of vCISO offerings (Source: Cynomi)
With 74% of non-adopting providers planning vCISO launches by 2026, AI’s role shifts from differentiator to essential infrastructure. The technology isn’t merely trimming labor—it’s reshaping cybersecurity’s economics, allowing SMBs to access enterprise-grade protection while turning MSPs into scalable strategic advisors. As one cybersecurity veteran observed: "When AI handles the paperwork, humans can focus on the threatscape."
Source: 2025 State of the vCISO Report by Cynomi, sponsored content via BleepingComputer
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