AI drives surge in vCISO services as MSPs expand rapidly
Cynomi has published its 2025 State of the vCISO Report detailing a notable surge in the adoption of virtual Chief Information Security Officer (vCISO) services and significant efficiency improvements attributed to artificial intelligence (AI).
Service expansion
According to Cynomi's latest findings, the proportion of managed service providers offering vCISO services has increased from 21% to 67% over the previous year, representing a more than threefold rise. The data presents vCISO services as one of the fastest-expanding segments within the cybersecurity and compliance market for both Managed Service Providers (MSPs) and Managed Security Service Providers (MSSPs).
This expansion comes as escalating demand for sophisticated cybersecurity and compliance capabilities pushes service providers to find new ways to deliver at scale. The report identifies AI as a decisive factor in this evolution, allowing providers to achieve higher productivity and profitability with reduced resource expenditure.
AI's role in efficiency gains
Cynomi's report outlines how AI-driven tools are helping providers achieve a 68% average reduction in vCISO workflow burdens. The adoption of AI and automation is already widespread among service providers delivering vCISO services, with 81% reporting use of such tools and a further 15% intending to implement similar technology within the next year.
Providers surveyed in the report estimate that AI can reduce labour time associated with cybersecurity and compliance service delivery by 58%. This reflects the broader impact technology is having on labour-intensive tasks, which have historically acted as barriers to growth in this sector.
Ongoing challenges in scaling services
Despite the increased use of AI-powered systems, the report also highlights the persistent challenges facing the sector. Respondents noted high initial costs, shortages of skilled personnel and the continued presence of time-consuming manual processes as ongoing issues when attempting to scale up service delivery.
AI-powered platforms are increasingly seen as a means of addressing these obstacles by reducing manual labour requirements and simplifying the management of complex cybersecurity and compliance operations.
Industry perspective
"When we launched the State of the vCISO survey three years ago, it was clear that service providers were just beginning to recognize the potential of strategic cybersecurity offerings. Today, that shift is in full swing," said David Primor, Ph.D., Co-founder and CEO of Cynomi.
"The sharp rise in vCISO adoption along with the growing role of AI confirms what we've long believed, cybersecurity is no longer just about protection, it's a business growth driver. With the backing of our funding round, at Cynomi we're committed to helping our partners stay ahead of the curve, and this research helps us all see what's coming next."
Application of AI-powered platforms
Cynomi's platform is described as a purpose-built solution to support the development and expansion of vCISO service offerings. It facilitates automated risk assessments, compliance readiness, and remediation planning, with claims of reducing manual effort by up to 70%. These capabilities are designed to help service providers enhance operational margins, extend customer lifetime value, and sustain competitiveness in a rapidly evolving marketplace.
The State of the vCISO Report's data and industry commentary indicate that as threats and regulatory requirements grow more complex, AI adoption and the outsourcing of vCISO services have become a strategic element for MSPs and MSSPs. The findings suggest providers are turning to technology not only to meet increased customer demand but also to address resource constraints and deliver services more efficiently at scale.