A new report reveals that nearly half of UK organizations are delaying or halting crucial digital transformation initiatives due to escalating concerns over state-sponsored cyberattacks. The 2025 Armis Cyberwarfare Report, based on a survey of over 1800 global IT decision-makers (ITDMs), including 501 from the UK, paints a concerning picture.
The study, conducted by security vendor Armis, found that 49% of UK organizations experienced disruptions to their digital projects because of the threat of cyber warfare. This fear is substantial: 88% of UK ITDMs expressed worry about nation-state cyberattacks—a significant 32% increase year-over-year. Furthermore, 47% reported experiencing and reporting such an attack to authorities, while 68% are reevaluating their supplier relationships due to rising geopolitical tensions.
This apprehension is not unfounded. China (74%), Russia (71%), and North Korea (37%) were identified as the most significant cyber threats to UK businesses.
The report highlights the challenges faced by network defenders, including complex regulations overwhelming security teams (52% of UK ITDMs) and a lack of in-house expertise to utilize AI-powered security tools (48%). Budgetary and resource limitations further hinder AI investments (50%).
Andy Norton, Armis’ European cyber risk officer, commented on the situation: “Businesses are facing a perfect storm of nation-state attacks, AI-powered threats and crippling ransomware payments. Yet, 58% only respond to attacks as they happen or after damage is done. The cost of inaction is abundantly clear – to stay on top of evolving threats, businesses must shift to a proactive cybersecurity posture to eliminate vulnerabilities before they can be exploited.”
The report underscores the critical need for robust cybersecurity foundations in successful digital transformation. A 2023 Telstra study supports this, showing that security was the top priority (25%) for IT leaders in business transformation, surpassing business processes, employee commitment, leadership buy-in, and external funding.
