How AI is Reshaping Cybersecurity and Compliance Services Survey Report|July 2025 Table of Contents Introduction and Key Findings ……………………………………………………………………………………………………………………………………………3Meeting the Demand for Advanced Cybersecurity Services ………………………………….………………….………………….…………………….7SMB Clients Are Driving High Demand for vCISO Services ………………………………….………………….……………………………………….……………….8Demand for Advanced Cybersecurity Services is Rising Across the Board ……………….…………………………………………………………………….9vCISO Services Surge as More Providers Respond to Market Demand …….………………………………………….…………………………………………. 10vCISO Providers Report Wide-Ranging Business and Security Benefits ……….…….………………………………………….………………………………... 11Even Non-Adopters See the Value in vCISO Services ……….…….……………………………………………………………………….……………………………….. 12Risk Assessments Offer Clear Value and a Path to vCISO Services …..……….…….………………………………………………………………………………. 13Cost and Resource Constraints are the Main Barriers to vCISO Adoption …..……….…….……………………………………………………………………. 14Most Providers without vCISO Offerings Plan to Add Them Soon …..……….…….…………………………………………………………………………………. 15How AI is Reshaping Cybersecurity and Compliance Services…..……….…….……………………………………………………………………………………16AI is Poised to Improve Cybersecurity and Compliance Services …..……….…….……………………………………………………………………………..……. 17Providers See Broad Potential for AI Across Cybersecurity and Compliance Tasks …..……….…….………………………………………………..……. 18Most vCISO Providers are Already Using AI and Automation …..……….…….……………………………………………………………………………….…..…….. 19AI Delivers Measurable Efficiency Gains for vCISO …..……….…….………………………………………………………………………………………..…………..……. 20vCISO Providers See Greater Potential for AI to Save Time …..……….…….……………………………………………………………….……………………..…….. 21What’s Next for Service Providers…..……….…….……………………………………………………………………………………………………………………………...…….22AI Adoption is Set to Grow Across Cybersecurity and Compliance Services …..……….…….…………………………………………………………..…….. 23Service Providers are Focused on Growth and Operational Strength …..……….…….……………………………………………………………….……..…….. 24Demographics…..……….…….………………………………………………..…………………………………………………………………………………………………………………….25About Cynomi…..……….…….………………………………………………..………………………………………………………………………………………………………………..……27 Introduction andKey Findings Introduction & Methodology When we launched the State of the Virtual CISO survey three years ago, the goal was tobetter understand how service providers are evolving their cybersecurity and complianceofferings and adopting the vCISO (virtual CISO) model. As the market continues to mature,so does this annual report, highlighting key trends, challenges, and opportunities for MSPs,MSSPs, and cybersecurity consultancies navigating a shifting landscape. METHODOLOGY To understand the current state of the vCISO market and how cybersecurityand compliance services are evolving, we commissioned a survey of 200senior security leaders from the U.S. and Canada, split evenly between MSPsand MSSPs. Respondents held senior roles, including Owner, CEO, CIO, CISO,COO, vCISO, Head of Security, and Senior Security Consultant, with allparticipants at the director level or above. This year’s data tells a clear story: vCISO services are rapidly moving into the mainstream. Injust one year, the share of providers offering these services has jumped from 21% to 67%.The survey audience remained consistent with previous years, reflecting growing demandamong SMB clients for more structured, proactive security support, and a clear accelerationin how providers are responding. The survey targeted IT companies that provide cybersecurity consulting orstrategic cybersecurity services. MSP respondents represented companies with50 or more employees; MSSPs had a minimum of 10 employees. The audienceprofile remained consistent with previous years, allowing for reliableyear-over-year comparisons. At the same time, the definition of “vCISO services” is evolving. What began as a focusedoffering has expanded into a wider range of cybersecurity and compliance activities,including everything from risk assessments and continuous compliance readiness tomanaging clients’ cybersecurity roadmaps and cyber resilience. This broader applicationreflects how service providers are thinking more strategically about cybersecurity as a driverof both protection and growth. The survey was conducted by Global Surveyz, an independent research firm,and fielded during May 2025. Respondents were recruited through a globalB2B research panel and invited via email to complete the survey. Mostnon-numerical questions were randomized to mitigate order bias in responses. We also explored new territory in this year’s survey, adding questions on AI and automation,tools that are increasingly critical to service provider success. The results offer insight notjust into where the vCISO market stands today, but into where cybersecurity and complianceservices are headed next. As a leader in this space, Cynomi rema