Phishing has always been an effective form of data theft. But the newest generation of phishing attacks is unlike anything businesses have seen before. Fueled by artificial intelligence, these scams are faster, more believable, and harder to detect.
AI phishing uses machine learning to craft highly personalized messages, mimic employee communication styles, and even generate convincing voice and video deepfakes. What once seemed like clumsy fraud attempts are now nearly indistinguishable from legitimate messages—making every inbox, call, and chat a potential point of entry.
With threat actors leveraging AI to bypass technical safeguards and human skepticism, it is critical for organizations to understand the risks and respond accordingly.
The changing face of phishing
Traditional phishing attempts often contained poor grammar, strange formatting, or generic language—telltale signs many employees were trained to catch. Those markers are disappearing. AI tools can now analyze an executive’s writing style from LinkedIn posts or marketing materials, then imitate their tone perfectly.
Worse still, generative AI can automate these attacks at scale, launching hundreds or thousands of custom-tailored scams in minutes.
In one recent case, scammers used a deepfake video call to impersonate a CEO requesting a wire transfer. The likeness was so accurate that it passed initial scrutiny, resulting in the loss of a significant sum before the fraud was discovered.
As Forbes Tech Council warns, these attacks can now combine deep learning, synthetic media, and real-time manipulation—often blending social engineering with high-end tech to trick even cautious professionals, making AI phishing especially dangerous (Forbes, 2025).
How to spot an AI phishing attempt
Even the most advanced phishing messages leave behind subtle signs. Businesses should train their teams to look for:
- Urgency without context: Requests that pressure an employee to act fast—especially involving payments, credentials, or sensitive data.
- Inconsistent details: Slight variations in email addresses, file names, or URLs, such as a missing letter or extra hyphen.
- Odd timing or phrasing: If a message feels “off” or out of character for the sender, verify it through another channel.
- Unusual media requests: Avoid clicking links or accepting video calls that come unexpectedly or contain odd facial behavior.
The Cybersecurity and Infrastructure Security Agency (CISA) recommends implementing routine awareness training to help teams recognize these patterns. Their training resources can provide a valuable foundation for your internal efforts.
Educate employees—and do it often
One-time training is no longer enough. AI phishing tactics are evolving too quickly for static policies to keep pace. Instead, build a learning culture that emphasizes real-time awareness and practice.
Some effective approaches include:
- Monthly phishing drills with examples of AI-generated emails.
- Interactive scenarios that include audio and video simulations.
- Clear reporting paths so employees know how to escalate suspicious messages.
- Positive reinforcement for cautious behavior, even if it turns out to be a false alarm.
The Federal Trade Commission also recommends giving employees a direct and fast method to report suspected phishing, so IT and security teams can respond quickly (FTC, 2024).
Build stronger security and response plans
No system is foolproof, but layered defenses make it harder for attackers to succeed. Start by revisiting your organization’s incident response and system access controls.
Key steps include:
- Enable multi-factor authentication (MFA) to protect credentials.
- Implement AI-powered threat detection that flags suspicious behavior across networks and user accounts.
- Follow a Zero Trust model, which verifies identity and access at every stage.
- Test and update your response plan regularly, including roles, communication templates, and external contacts.
In the event of a breach, being prepared can reduce both the scope of the damage and the cost of recovery.
Why AI phishing affects every industry
From law firms to retailers, no sector is safe. Data shows that phishing remains one of the most effective ways for criminals to breach a network—and AI only increases its success rate.
For industries like healthcare, education, finance, and technology—where sensitive records are frequently handled—the risk is even higher. A single fake invoice or corrupted voice message can open the door to devastating data loss or reputational damage.
Get coverage that moves as fast as the threat
The unfortunate truth is that AI phishing will continue to advance. Even the best defenses cannot block every threat. That is where cyber liability insurance comes in.
MDO Insurance offers specialized cyber liability coverage designed for real-world attacks, including:
- Data breach response and forensic services.
- Regulatory defense and penalty coverage.
- Identity protection and crisis communications support.
- Protection for both first- and third-party losses.
From law offices to hospitals to retailers, MDO’s policies are tailored to the industries most at risk.
For more guidance on phishing prevention—and to explore coverage options—visit MDO Insurance’s Cyber Liability Insurance page.