The concern that the KPMG US CEO keeps hearing from other executives

Tim Walsh, CEO and chair of KPMG US, said he routinely hears about cybersecurity concerns from fellow leaders.

Tasos Katopodis/Getty Images for Semafor World Economy CEOs are excited about AI, but increasingly worried about cybersecurity, KPMG US CEO Tim Walsh said.

“The cyber risks have just elevated to places that we’ve never seen before," he told Business Insider.

KPMG is creating a cyber-defense business built around AI.

Corporate leaders tend to be enthusiastic about AI's potential — and increasingly concerned about the cybersecurity challenges the technology brings.

Tim Walsh, CEO and chair of KPMG US, said the worries come up in nearly every meeting he has with fellow leaders, as AI gives bad actors new ways to try to breach corporate defenses.

"The cyber risks have just elevated to places that we've never seen them before," he told Business Insider.

Walsh pointed to the Hugging Face incident this past summer, in which OpenAI said an AI agent bypassed controls during an internal cybersecurity evaluation and accessed parts of the open-source AI platform's systems.

There isn't currently a defensive wall, he said, that's capable of rebuffing every cyber threat.

He said KPMG is working with the frontier AI model developers and others on further protections.

The goal is to help the Big Four firm protect its business, and its clients' businesses, Walsh said, adding that he sees it as a potential opportunity worth more than $1 billion. 'Cyber insecurity' fears Unease about AI and cyber threats showed up in a recent KPMG US survey of 400 CEOs at major US companies.

While leaders reported confidence in AI's potential, cybersecurity was the concern they identified most often.

Eighty-five percent said cybercrime and "cyber insecurity" could affect their company's prosperity over the next three years — more than said the same about inflation, geopolitical tensions, the pace of technological change, or other risks.

Cybersecurity was also the most commonly cited challenge to implementing AI .