Phishing has long been one of the most successful tools for cybercriminals. Today, AI phishing emails are making these attacks faster, smarter, and harder to spot. Criminals are now using artificial intelligence to write flawless emails, mimic executive communication styles, and even create convincing voice and video deepfakes.
What once looked like sloppy scams filled with typos has evolved into targeted, realistic attempts that can fool even cautious professionals. Every inbox, video call, and chat window is a potential entry point for attackers.
With AI-powered phishing, businesses need to rethink how they defend themselves.
How AI changes the phishing threat
Traditional email phishing attempts often stood out for their clunky formatting and poor grammar, but AI has eliminated those red flags. Today’s attackers can scrape social media or corporate websites to study how executives write, then generate messages in that style.
Even worse, generative AI allows criminals to launch thousands of these tailored attacks in minutes. In February 2024, a finance worker at a multinational firm was tricked into transferring $25 million after attending a deepfake video call with criminals posing as the company’s CFO. The attackers recreated the executive’s likeness and voice so convincingly that the fraud went undetected until it was too late (The Guardian, 2024).
This blend of social engineering and synthetic media makes AI-driven phishing especially dangerous, and it is spreading across industries.
Spotting the signs of AI phishing emails
Even the most advanced phishing attempts leave clues. Employees should be trained to look for:
- Urgent requests without context. Demands for immediate action, especially involving payments or sensitive data, are red flags.
- Small inconsistencies. Look for tiny differences in email addresses, domains, or document names.
- Messages that feel slightly “off.” If the tone, timing, or request seems unusual, confirm with the sender through another channel.
- Suspicious media. Unexpected video calls, strange facial glitches, or odd audio cues may indicate deepfake manipulation.
We recommend reviewing the Cybersecurity and Infrastructure Security Agency (CISA) guide to help organizations use ongoing training to recognize these signs and avoid falling victim: CISA, 2025.
Also read: AI Security Risks: How to Stay One Step Ahead
Employee education must evolve
A single training session is no longer enough. Because AI phishing emails are constantly improving, businesses must foster a culture of continuous learning.
Effective strategies include:
- Running monthly phishing simulations, including AI-generated emails.
- Using interactive training with audio or video deepfake examples.
- Establishing fast, simple reporting channels for suspected phishing.
- Rewarding employees who report suspicious activity, even if it proves harmless.
The Federal Trade Commission also stresses the importance of quick reporting to help IT and security teams act before damage spreads (FTC, 2024).
Building stronger security defenses
Technology and planning must work alongside training. A layered defense makes it harder for attackers to succeed. Companies should:
- Require multi-factor authentication (MFA) for all users.
- Deploy AI-powered detection tools that monitor unusual patterns in email, logins, and file access.
- Adopt a Zero Trust framework, verifying identity and permissions at every step.
- Regularly test and update incident response plans to ensure readiness.
Strong defenses reduce the odds of a breach, and preparation limits the financial and reputational fallout if one occurs.
Why AI phishing emails affect every industry
From law firms to hospitals, no sector is immune. Phishing remains one of the top causes of data breaches worldwide, and AI is making it even more effective.
Industries that handle sensitive information, such as finance, healthcare, education, and technology, face elevated risks. A single fake invoice or convincing video call can lead to stolen funds, compromised data, and long-term brand damage.
Without proper safeguards, the consequences can be devastating for small and mid-sized businesses.
Cyber Liability Insurance: Protection beyond prevention
The reality is that no defense is perfect. Even well-trained teams and advanced systems may miss a sophisticated AI phishing attack. That is why cyber liability insurance is an essential layer of protection.
McGowan Program Administrators offers a Comprehensive Cyber Liability Program built for real-world threats like AI-driven phishing. Coverage includes:
- Up to $2 million in protection with budget-friendly premiums.
- Social engineering coverage up to $500,000.
- First- and third-party coverage across 19 categories.
- Same-day turnaround with controllable measures in place.
- Business interruption and dependent network coverage.
To strengthen defenses, McGowan partners with White Dragon AI to provide ORCA, a phishing simulation tool that trains employees with realistic, safe phishing attempts. ORCA helps staff build the skills to spot and avoid AI phishing emails before they cause harm.
Read more: Why Your Business Needs Cyber Liability Insurance
Stay ahead of AI phishing emails
AI and its application in already-familiar threats such as phishing emails is reshaping the cyberthreat landscape. Organizations that combine training, layered defenses, and insurance will be better positioned to withstand these advanced attacks.
To learn more about protecting your business and training employees with realistic phishing simulations, explore McGowan Program Administrators’ Cyber Liability Insurance program.