With the advent of more powerful artificial intelligence, there is a clear call for arms in the cybersecurity industry. Hackers already have access to new “generative” AI tools, while cybersecurity companies are scrambling to come up with better defenses.
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The problem: Just as new generative AI chatbots can write high school essays and computer code, they can also help hackers with “phishing” attacks. In this case, hackers craft sophisticated emails that lure employees and management into disclosing their security credentials. Hackers can also force ChatGPT-type tools into creating malware that mutates to avoid detection on computer networks.
Meanwhile, cybersecurity firms hope generative AI tools can help reduce the time it takes to detect and respond to various forms of computer hacking. We also believe generative AI will automate more functions in security operations centers, helping companies address the shortage of software engineers.
In a recent note to clients, TD Cowen analyst John Blackledge said, “Attackers are leveraging GenAI’s capabilities to launch more sophisticated social engineering attacks and frauds that are becoming increasingly real. It will generate at a speed and scale that becomes indistinguishable from communication.”
He added, “Vendors of identity, access management and threat detection solutions will ultimately have to address the obvious threats arising from advanced malware that can take advantage of AI and machine learning capabilities.”
Cybersecurity AI models need data for training
Cybersecurity companies have long used the pattern recognition capabilities of AI for real-time data analysis. Since the launch of OpenAI’s ChatGPT in November, how to combat cybercrime has become more urgent.
Generative AI technology is rapidly finding applications in areas such as marketing, drug development, and video games. The problem is that the cybersecurity industry may have challenges that other industries do not have when it comes to deploying generative AI technologies.
Large language models analyze large amounts of public Internet data to develop applications like ChatGPT. The AI model responds to “prompts” that describe what the user wants to get.
In cybersecurity, high-quality data for training AI models is limited “due to the sensitive and siled nature of security data,” Morgan Stanley analyst Hamza Fodderwala said in a recent note. said in
Goldman Sachs analyst Gabriela Borges has a similar view.
Best Stocks Among Cybersecurity Companies
“Enterprise-focused security AI requires much more rigorous application and has historically been constrained by access to comprehensive data sets,” Borges said in a recent note to customers. said in
“This is the biggest hurdle for AI in cybersecurity today,” continued Borges. “But we are starting to see the benefits of AI in threat detection. We believe platforms with extensive internal data logs across both endpoints and networks are best positioned to reap long-term gains. ”
Investors looking at AI stocks may focus on the cybersecurity landscape as a potential strategy.Some analysts point out that microsoft (MSFT), Palo Alto Networks (PANW) and Crowdstrike Holdings (CRWD) considered as a beneficiary of increased security spending.
Microsoft, the largest investor in OpenAI, has launched a Security Copilot. Copilot’s AI assistant helps cybersecurity professionals understand threat intelligence and investigate incidents with prompts.
Morgan Stanley’s Fodderwala called Microsoft Security Copilot “ChatGPT for cybersecurity.” Microsoft has not said when the Copilot tool will be widely available.
How one cybersecurity professional sees AI
Meanwhile, Palo Alto Networks leverages threat detection logs in its AI-based Security Operations Center platform. During Palo Alto’s third quarter financial results call, executives commented on generative AI opportunities.
“I think we will see a transformation in the next 12 to 24 months for Palo Alto Networks and the enterprise software industry as a whole with the introduction of generative AI,” Palo Alto CEO Nikesh Arora said on a conference call. Told. “I think that’s the real opportunity and challenge that’s in front of us. And I think half the people out there get it wrong. And hopefully we’re on the right side of history.” there is.”
Palo Alto Chief Product Officer Lee Clarich believes companies like him are also well positioned.
“If you’re in the security business, having the world’s largest data lake of security data definitely helps,” says Klarich. “From that perspective, I think it favors people who already have a lot of data as part of their strategy and are building their business around a data-driven strategy.”
Meanwhile, CrowdStrike has added AI capabilities to its Falcon platform. CrowdStrike’s earnings will be announced on May 31st.
At the RSA conference in late April, sentinel one (S) announced PurpleAI, a threat hunting platform that integrates GenAI into its Extended Detection and Response (XDR) platform.
Cybersecurity Company: Artificial Intelligence in Startups
Among cybersecurity startups are companies with AI technology such as ReliaQuest, Deep Instinct and Recorded Future. Analysts expect further artificial intelligence innovations from incumbents and start-ups.
At TD Cowen, Blackledge sees GenAI systems being used to create realistic threat simulators, for example. Also, Evercore ISI analyst Peter Levine expects the cybersecurity industry to adapt.
“There are two sides to security: proactive and reactive,” Levine said in the memo. “The preventive mindshare is growing a bit more. This is a potential area where more advanced AI could be leveraged to better predict future attacks. Access Control (Identity) The idea of integrating networking with is something we’ve heard that could become an area of focus. “
Meanwhile, the IBD Computer Security group ranks 56th out of 197 groups tracked. Fortinet (FTNT), Palo Alto Networks, and CrowdStrike hold the highest overall ratings in the Cybersecurity Group.
Follow Reinhard Klaus on Twitter @reinhardtk_tech See the latest in 5G wireless, artificial intelligence, cybersecurity and cloud computing.
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