The increasing sophistication and volume of cyber threats have made cybersecurity a mission-critical component for businesses of all sizes. As a result, small and medium-sized businesses (SMBs) are increasingly turning to virtual Chief Information Security Officer (vCISO) services to manage escalating threats and meet compliance requirements. A recent report by Cynomi highlights this trend, revealing that a substantial 79% of managed service providers (MSPs) and managed security service providers (MSSPs) are observing high demand for vCISO services from their SMB clients.
To meet this growing demand, service providers are rapidly scaling their vCISO offerings. The adoption of vCISO services among MSPs and MSSPs has grown significantly, jumping from 21% in 2024 to 67% in 2025—a remarkable 319% increase. Furthermore, half of the service providers who currently do not offer vCISO services plan to introduce them by the end of the year. This rapid adoption signifies a clear industry shift, transforming vCISO from a niche service into a foundational offering. Providers are expanding their service portfolios to capitalize on this market opportunity and address the urgent cybersecurity needs of SMBs.
This expansion is driven by the significant business upside that vCISO services offer.
As the demand for these services outpaces even needs for compliance readiness and cyber insurance support, providers are positioned to generate new revenue streams and improve their profitability. By offering vCISO services, they can move beyond traditional managed IT services to provide high-level cybersecurity expertise, thereby increasing their value proposition to clients. The ability to scale these services efficiently allows providers to serve a larger client base without a proportional increase in operational costs, leading to enhanced profit margins and sustainable business growth.
AI plays a crucial role in enabling this scaling and improving service delivery.
Its applications in vCISO services are extensive and impactful, including automating reporting and insights, streamlining remediation planning, and facilitating compliance readiness and monitoring. AI also assists with risk and security assessments and task prioritization, which significantly reduces the manual workload for providers. On average, service providers are seeing a 68% decrease in manual workload, with 42% of providers experiencing an 81-100% reduction in specific areas.
The integration of AI into vCISO services allows providers to support more clients and deliver higher-quality outputs without needing to expand their headcount. This efficiency gain enables the kind of scale and consistency that would be difficult to achieve with traditional, human-led delivery models. Ultimately, AI is not just a tool for automation; it is a transformative technology that is reshaping how vCISO services are delivered, making them more scalable, consistent, and profitable for service providers while ensuring SMBs have access to the expert cybersecurity guidance they desperately need.
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