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The next big business challenge: How organizations are preparing to secure AI

AI will change most industries but also brings new risks and challenges. Kaspersky’s new research looks at how enterprises worldwide are approaching it.

  • Emerging tech
  • min read
    • Of all investments today, artificial intelligence (AI) is transforming enterprises, enabling them to provide improved services, automate processes and make better decisions. Business leaders must invest in the right tech at the right time, and have the people and systems in place that can guarantee success. AI will change most industries but also brings new risks and challenges in securing enterprises and safeguarding customers. Kaspersky's new research aims to help businesses stay ahead of the changes AI brings, published in this 2024 report, Connecting the future of business: How leaders should prepare for using and securing AI and interconnected technologies. About the interconnected tech research Kaspersky surveyed 560 IT security leaders in six regions – North America (US,) Latin America (LATAM: Brazil, Chile, Columbia and Mexico,) Europe (Austria, France, Germany and Switzerland,) Middle East and Africa (META: Saudi Arabia, South Africa, Turkey and United Arab Emirates,) Russia and Asia-Pacific (APAC: China, India and Indonesia.) Respondents were either aware of or involved in cybersecurity decisions about interconnected tech such as AI, web 3.0, data spaces, digital twins, augmented reality (AR,) virtual reality (VR,) 6G and internet of things (IoT.) They worked in organizations with at least 1,000 employees across many sectors. Kaspersky asked how they're introducing and securing AI and other interconnected technologies. Here's what the research revealed. AI is organizations' significant focus for the next two years AI is becoming a cornerstone for organizations striving to stay ahead thanks to its ability to foster innovation. In cybersecurity, AI offers predictive analytics and greater adaptability. Goldman Sachs says global investment in AI will reach 200 billion US dollars by 2025. AI is more than a technology. It's a strategy that lets organizations navigate today's complex business environment. AI adoption Nearly all organizations surveyed have already adopted (54 percent) or plan to adopt AI within two years (33 percent.) Respondents see Generative AI (GenAI) as valuable for improving security technologies' performance. Goldman Sachs economists Joseph Briggs and Devesh Kodnani say GenAI could boost global labor productivity by more than one percentage point yearly once its use becomes widespread. IT companies worldwide are upskilling their workforce and undertaking GenAI pilots to avoid falling behind. IT giants Accenture pledged three billion US dollars to data and AI investment, while French tech firm Capgemini is putting two billion Euros towards GenAI over the next three years. Securing AI 49 percent of organizations said they were extremely well, or well prepared, to secure AI. Almost 50 percent think AI is slightly or not at all hard to secure. Compared with securing other interconnected technologies, most organizations felt more prepared to secure AI. In responding to Kaspersky's survey, the head of cybersecurity at a Brazilian bank said, "I mostly don't find security problems with GenAI. We already understand how to run and train it." While many organizations feel confident in their ability to secure AI, a little over half felt less than well-prepared to secure AI. These businesses need to do more to prepare for the inevitable scale-up of AI-based technologies. AI makes digital trust and data compliance indispensable AI introduces new challenges and complexities in protecting sensitive data and maintaining digital trust. Digital trust is an aspect of customer trust. In Kaspersky podcast Insight Story, emerging tech security expert Malek Ben Salem described digital trust as, "Our confidence that our privacy is protected and secured, the reliability of digital transactions and how sure we are of the identities of those we engage with." Tech researchers McKinsey's 2022 Digital Trust report said 70 percent of people trust companies to protect their privacy, but most companies aren't meeting their expectations. Data breaches, unauthorized access and privacy violations can erode digital trust and lead to reputation damage, lost business and regulatory consequences. Building digital trust takes time but is essential to users' confidence in AI. How AI impacts digital trust AI lets organizations collect and store more data about customers, operations and interactions. This wealth of data helps gain insight but also means more risk of breaches. AI facilitates sharing data between devices, networks and organizations. Data sharing aids collaboration, efficiency and innovation but also means more opportunities for unauthorized access. As it is relatively new, organizations may struggle to be clear about their practices and security around AI. Without clear communication, trust may break down. Top ways organizations are improving digital trust and compliance Adopting zero-trust frameworks is organizations' top response to the need to improve digital trust, with 81 percent already using or planning to adopt zero-trust within two years. Other actions include pursuing data privacy and cyber resilience regulations (74 percent) and digital sovereignty initiatives (73 percent.) Kaspersky's research found companies introducing zero-trust frameworks are better prepared to secure AI and other interconnected technologies: 51 percent of zero-trust framework early adopters said they were extremely well-prepared or well-prepared to secure these technologies, compared with just 27 percent of the rest. The zero-trust canvas: Painting the future of cybersecurity The rise of AI is opening the door for organizations to break with all traditions that don't work for today's tech realities. Traditional cybersecurity is vulnerable to insider attack because it relies on trusting those within a network's perimeter while viewing outsiders as suspicious. Enter: Zero-trust frameworks. The head of IT at cloud provider Searce said, "The zero-trust security model is the only framework that works. The traditional security model can't do the job, especially for interconnected technologies." Under zero-trust frameworks, every user and device must undergo continuous multi-factor authentication (MFA) and authorization, regardless of their trust level. Users and devices get the minimum access needed for their tasks, with constant monitoring of user activity, device behavior and network traffic. Regulation and compliance With each territory having different data protection and privacy legislation, global organizations find it hard to achieve consistent standards around AI. 62 percent of leaders find compliance certification hard. They want to see standardized compliance processes across regulations and say online tools and platforms, with clear guidelines, would further simplify certification. Handling growing challenges and preparing to secure AI With the scale of change AI will likely bring, organizations must have a strategy to prepare themselves to adopt and secure it. Kaspersky research uncovered four effective strategies to ensure readiness to secure AI and other interconnected technologies: Adopting security by design principles, training and upskilling your workforce, upgrading your cybersecurity solutions and meeting regulation and standards. The full report, Connecting the future of business, details each strategy. Interconnected technologies like AI bring huge business opportunities but also a new era of vulnerability to serious cyberthreats. With more data collected and transmitted, cybersecurity measures must get stronger. Organizations can use effective strategies to safeguard critical assets and fortify customer trust amid a growing interconnected landscape. Leaders must also resource cybersecurity well enough to enable access to improved cybersecurity solutions that can meet oncoming challenges.
interconnected technologies 4 strategies, Young, Woman, Touching, Sensitive, Screen, While, Selecting, Surface, Female

Four ways to prepare your business to secure AI and interconnected technologies

  • Emerging tech
  • min read
    • Of all business investments today, interconnected technologies – the growing network of devices, systems and applications connected to the internet and to each other – are the most vital and challenging. From artificial intelligence (AI) to data spaces to internet of things (IoT,) interconnected tech is letting enterprises gather more data, automate processes and make better decisions. While this 'Fourth Industrial Revolution' is propelling change in every industry, it also brings new risks and challenges in securing enterprises and safeguarding customers. Kaspersky's new research aims to help businesses stay ahead of the changes interconnected technologies bring, published in this 2024 report, Connecting the future of business: How leaders should prepare for using and securing AI and interconnected technologies. About our interconnected tech research Kaspersky surveyed 560 IT security leaders in six regions – North America (US,) Latin America (LATAM: Brazil, Chile, Columbia and Mexico,) Europe (Austria, France, Germany and Switzerland,) Middle East and Africa (META: Saudi Arabia, South Africa, Turkey and United Arab Emirates,) Russia and Asia-Pacific (APAC: China, India and Indonesia.) Respondents were either aware of or involved in cybersecurity decisions about interconnected technologies. They worked in organizations with at least 1,000 employees across many sectors. We asked how they're introducing and securing AI, web 3.0, data spaces, digital twins, augmented reality (AR,) virtual reality (VR,) 6G and internet of things (IoT.) Four interconnected tech preparation strategies With the scale of change these new technologies will likely bring, organizations must have strategies to prepare to adopt and secure interconnected tech. We found organizations that felt ready to secure interconnected tech tended to adopt four strategies: Embracing security by design principles, training and upskilling their workforce, upgrading their cybersecurity solutions and striving to meet regulation and standards. Here's a little more on each strategy. 1.    Adopting security by design principles Integrating cybersecurity into each stage of the software development lifecycle makes secure-by-design software and hardware more resilient to cyberattacks. Our research found leaders focused on integrating cybersecurity into development processes – dubbed Security by Design Promoters – were also better prepared to secure interconnected technologies. 50 percent of Security by Design Promoters felt prepared to secure interconnected tech, compared with 26 percent of the rest. Leadership teams can start promoting security by design by asking where in their design processes cybersecurity expertise is usually first involved. They may also play a role in ensuring budget for security testing during design. 2.   Training and upskilling your workforce With the right cybersecurity education, staff can be a formidable line of defense against cyberattacks. Building a cyberaware culture requires a strategy that empowers employees to gain knowledge and put it into practice. Our research found Training and Upskilling Promoters – organizations prioritizing training and upskilling their people – were better prepared to secure interconnected tech. 55 percent of Training and Upskilling Promoters felt prepared to secure interconnected tech, compared with 25 percent of the rest. Leaders we surveyed shared cybersecurity education approaches that worked well. They favored regular programs covering topics like cybersecurity policies and common cyberthreats, phishing simulations to identify further training needs and awareness campaigns sharing best practice and real-world cyber incident examples. Leaders also emphasized user-friendly security policies, greater collaboration with the IT and security teams and demonstrating good cybersecurity practice from the top. Leadership teams can support training and upskilling the workforce by asking how often employees receive cybersecurity training and how the organization measures their understanding. 3.   Upgrading cybersecurity solutions More devices connecting to the internet means more ways to attack. As businesses adopt these technologies, they need more advanced cybersecurity solutions, such as those with enhanced access controls, encryption and regulatory compliance. Our research found Advanced Cybersecurity Adopters — organizations focused on upgrading cybersecurity solutions — are better prepared to secure interconnected tech. 55 percent of Advanced Cybersecurity Adopters felt prepared to secure interconnected tech, compared with 22 percent of the rest. Advanced cybersecurity solutions let your business adapt to evolving threats, meet new regulation and protect critical data. The leadership team should ask what the organization knows about threats that suggest upgrading cybersecurity solutions, how to minimize the impact of upgrading solutions on workflows and how to ensure employees can use the upgraded tools effectively. 4.   Meeting regulation and standards To avoid legal problems or reputation damage, your cybersecurity practice must meet changing standards and legal requirements. Our research found organizations prioritizing meeting new regulation and standards — Regulation Promoters — are better prepared to secure interconnected tech. 40 percent of Regulation Promoters felt prepared to secure interconnected tech, compared with 27 percent of the rest. To better meet regulation and standards, leadership teams can ask if the organization already meets all security regulation and standards, and if not, which to prioritize. You might also look at how to use cybersecurity compliance processes to build customer's digital trust. Interconnected technologies bring huge business opportunities but also a new era of vulnerability to serious cyberthreats. With more data collected and transmitted, cybersecurity measures must get stronger. Organizations can use these four strategies to safeguard critical assets and fortify customer trust amid a growing interconnected landscape. Leaders must also resource cybersecurity well enough to enable access to new cybersecurity solutions that can meet interconnected tech's oncoming challenges.
insight story extended reality

How virtual and extended reality are transforming business

  • Emerging tech
  • min read
    • Between virtual reality (VR,) augmented reality (AR) and assisted reality – or their catch-all names mixed reality and extended reality (XR) – you might feel like you're losing your grip on all of them. But many businesses are reaching out to these emerging technologies to help solve tough problems like getting the team together remotely and hands-on training. On Kaspersky's new podcast, Insight Story, Episode 6, I look at extended reality with Dr. Paul Tennent (UK,) Associate Professor, Mixed Reality Lab, University of Nottingham and David Kim (South Korea,) Business Development Manager for Soma virtual office by Zigbang. Insight Story unpacks emerging tech trends with global specialists and businesses successfully applying the technology. VR, AR, XR – what are the different realities? These technologies all fall somewhere on the virtuality-reality continuum, according to Paul. "We've got these two ends – virtuality and reality. All the way along this spectrum are these technologies. They're generally about replacing our senses with something else – for example, our vision with a screen close to our eyes, hearing with headphones or touch with haptics. Augmented reality (AR) involves putting digital things in the real world. Assisted reality involves telepresence. Mixed and extended reality (XR) are catch-alls for everything from virtual reality to assisted reality to telepresence." Business has applied these technologies for over a decade. The IKEA app uses AR to let you superimpose their furniture on your room. Chat video filters that make your face look like a cute dog are also AR. While we're familiar with these kinds of consumer uses, businesses are increasingly using XR in their work with other businesses (B2B.) Paul has seen engineering companies make good use of assisted reality. "You can support on-site engineers with assisted reality, having somebody sitting behind them, watching what they're doing." "If you were installing a heat pump, it's useful to see a geothermal survey of the area before you drill a big hole. AR can add that layer of data onto real life," says Paul. An engineer could see the extra data layer by pointing a smartphone or tablet at what they're working on. One award-winning use of haptics – technology that transmits tactile information like vibration, feel and force – in training vets often provokes laughs but helps solve a serious problem. "A virtual, haptic simulation of a cow's back end helps vets-in-training feel different contexts, like something cancerous or moving a calf. With virtual glasses, it looks like a real cow. We see similar uses in medicine, with point-based haptic systems imitating a scalpel cutting through skin." Virtually solving the remote collaboration problem Few businesses need to teach how to deliver a calf, but almost all are looking for ways to better facilitate collaboration in remote and hybrid work. Proptech startup Zigbang started creating virtual office Soma during the pandemic. David says, "When our company went remote, we did what everyone did – endless Zoom calls where you fall into Zoom fatigue. A missing core element was togetherness – small conversations that turn into bigger ideas. We wondered if there's a way to better go about this remote thing." Zigbang's existing work creating 3D models of apartments sparked an idea. "We thought, why don't we create an office we could go into together? We started testing it with developers and thought it was good enough to bring in the whole company." In Soma, avatars represent colleagues, with their device's camera feed over the avatar's head. Like in real life, if you're far from someone, you can't see or hear them. As you walk closer, you start to see them and, when really close, hear their audio and see them clearly. David says, "We wanted to create that instantaneous communication – being able to walk up to someone and ask, did you get that email?" If, like me, you enjoy the solitude of remote working, and find the idea of your boss's avatar stealthily approaching and interrupting you unappealing, there's a middle way. Soma lets staff ensure they're left alone to do deep work. "We designed spaces for people to get away from others and get work done – bookable conference rooms and 'pods' – by walking into a pod, you're saying, I don't want to be disturbed." David also has ideas to address some of the challenges for office-less businesses. "Employees who don't have enough space or privacy to work at home may prefer to be in the office where everything's set up, and companies pay for air conditioning, electricity and internet. There are different ways to handle that – one is a stipend to help staff set up a home office. We've also set up lounges across the city where employees can go to work." The shared office space market is booming – expected to be worth 123 billion US dollars by 2028. Reducing cybersecurity risk with realities Kaspersky's Fabio Assolini sees several privacy and cybersecurity risks for businesses using extended reality tech. "During the pandemic, we saw the rise of so-called Zoombombing – when someone accesses a conference call without permission and shows obscene or violent material. It can affect VR devices too." How Zoombombing happens isn't high-tech. Fabio says, "People openly share passwords. Employees must be trained not to." Meanwhile, VR headsets are in a league of their own for privacy concerns. Meta's Quest Pro headset has four front-facing cameras, three on each controller and several to track eyes and facial expressions. These devices could give deep insight into users' activity, read emotional reactions to ads and make inferences from your home interior — from what colors you like to how many pets and children you have. But none of this should deter businesses from exploring what immersive tech can do as a training aid. "The tech is already in use to help people learn about security problems or cyberattacks," says Fabio. Kaspersky Interactive Protection Simulation sees teams, including technical staff and leaders, protecting a virtual business from cyberattacks. Players use a limited budget and a moderator's input to build an optimal protection strategy. It helps managers and directors understand cybersecurity budgets better. Realities' future Asked where extended reality might go next, Paul predicts "a shift slightly away from VR towards AR. We're headed for a fluid reality, which is part physical and part digital." David urges businesses to get on board with these technologies. "Things are changing now in the realm of work. Companies more willing to look into and implement changes early will be the ones that succeed down the line." Listen to the full Insight Story audio series on Podbean or your usual podcast provider.
chatGPT cybersecurity regulation

With ChatGPT’s vast innovative potential, regulators must take care

  • Safer business
  • min read
    • ChatGPT and other artificial intelligence (AI) chatbot applications are major technological milestones with far-reaching benefits for many industries. But with each advance comes unintended consequences. With ChatGPT in its fourth iteration, and its underlying technologies growing fast, it's time to take stock of the policy landscape to understand its implications. What is ChatGPT, and how are businesses using it? ChatGPT is an AI chatbot made by OpenAI. It uses natural language processing (NLP) to create human-like text responses. Users can ask ChatGPT almost anything and receive relatively natural-sounding responses. It can write outputs like programming code, social media posts, summarize complex topics or almost anything text. ChatGPT is an example of generative AI: Artificial intelligence that learns to generate original content like images, music and text by identifying underlying patterns in existing examples. "Its primary objective is to create interactive and realistic conversations with users, making it a powerful tool for chatbots, virtual assistants and customer support applications," says AWS Solutions Architect Ragu Kuppannan. Many top companies are using ChatGPT. For example, travel outlet Expedia wants customers to be able to book a holiday in a way that feels like having a chat with a travel agent. Microsoft, a major investor in OpenAI, says ChatGPT already powers its search engine, Bing, and plans to add it to Word and Excel. ChatGPT could be promising for any application where natural, conversational interaction between people and tech would be beneficial. Risks of ChatGPT Critiques of ChatGPT and other chatbot applications generally focus on its potential to disrupt human employment, produce incorrect information or poor practice in training algorithms to identify harmful content. The underlying cybersecurity risks get less attention. Kaspersky's specialist threat intelligence teams have identified three main risk areas. First, ChatGPT can provide advice, even detailed guides, to help prospective attackers plan and target victims. Second, it can develop code and even create entire coding projects for those with little knowledge of software development. While ChatGPT has restrictions and safeguards to avoid abuse, they're fairly easily bypassed. Third, ChatGPT produces convincing and accurate text that can be used in phishing or spearphishing. To some extent, these three areas represent theoretical risks or outlier scenarios that don't represent how people and businesses usually use ChatGPT. Policy perspective beyond risks Policy should aim to be technology-blind – taking a similar approach to all related technology that might emerge in the future, rather than creating a unique approach for one of today's concerns. It should build the best possible defenses against the worst human intentions and applications. Practically speaking, there may be no way to prevent or limit use of tech like ChatGPT. And to limit an emerging technology's potential means being left behind in a global digital economy. While policy discussions usually focus on outputs – the material ChatGPT produces – its inputs (the data it's trained with) may be a bigger threat. Data-driven tools like ChatGPT are only as good or accurate as their training datasets. As chatbot systems may become the most common way to use the internet, issues will have wide impact. Ensuring balance in training data is a growing challenge as disinformation expands. Bad actors can influence what users see and read in ways that have global consequences. Datasets, devices and systems must be secure and accurate. How nations are regulating AI In our public policy work, Kaspersky advocates public-private partnerships. We think partnerships combining global private-sector expertise with policymakers' local needs will be the best defense. It's a middle-ground approach that avoids too much or too little caution. These partnerships in cybersecurity maximize the advantages of emerging technologies like ChatGPT, while safeguarding against risks. United Arab Emirates (UAE) is a role model for inclusive public-private partnerships. They've taken a progressive and collaborative stance on partnerships with international tech firms. Initiatives and forums like the Dubai Chamber of Digital Economy and the UAE Cybersecurity Council aim to safely and securely advance technological growth for short- and long-term benefit. In May 2023, Brazil was considering a Bill to regulate AI. It requires "systems [to] undergo a preliminary assessment carried out by the suppliers themselves, to determine whether they can be classified as being of high or excessive risk," according to OneTrust Data Guidance. It also restricts exploitative AI uses, like subliminal techniques that could cause harmful behavior or target vulnerabilities in older and disabled people. The Center for Strategic and International Studies says Japan looked at the European Union's sterner approach to AI regulation and had "concern that the burden of compliance and the ambiguity of regulatory contents may stifle innovation." Instead, Japan is adopting a "human-centered" approach based on seven principles – among them, privacy protection, security and innovation. They regulate AI through several laws. The Digital Platform Transparency Act, for example, requires fair and transparent practice from large online stores and digital advertising businesses, including disclosing how they decide search rankings. Values are the key to balanced regulation ChatGPT and other generative AI fit a model of technological development we've seen throughout history – it disrupts human lives and businesses with exciting potential but also serious risks that need policymakers' attention. UAE, Brazil and Japan have regulatory approaches that are values-led and aim for a middle ground: A balance between too much and too little caution. Alongside, partnerships between the public and private sector hold promise to let business embrace innovation while adequately managing risk.
IT economics report

Guess who’s leaking as much data as cybercriminals

  • Leadership
  • min read
    • New research by Kaspersky finds employees are causing more data leaks. So much so that employee action and cyberattacks are running neck-and-neck. What's behind this growth in employee-initiated data leaking? And what can business leaders do to turn employees from cyber risk to cyber asset? Why are employees causing more data leaks? More than 3,000 IT security managers in 26 countries contributed views to Kaspersky's 2022 IT Security Economics report. The research found that in 2022, cyberattacks caused 23 percent of data leaks, while employees caused a close 22 percent. This growing proportion of leaks linked to employees may follow work-life changes since the pandemic. The report says, "IT security teams are now battling data leakages caused by employees […] following the introduction of new staff laptops or tablets, and Virtual Private Networks (VPNs) to enable remote working." And it's not all innocent mistakes. Most employee-triggered leaks involved ignoring cybersecurity policy, but security managers also reported more than a third (36 percent) were deliberate acts of sabotage or espionage. How employees cause data leaks Small, almost mundane actions often lead to data leaks. Usually, the employee is tricked by a 'social engineering' tactic or practicing poor cyber 'hygiene.' But what does that mean? Social engineering Cybercriminals use manipulative tricks known as social engineering to fool employees into giving them access to systems or giving out information they otherwise wouldn't. A common approach is 'phishing' – emails or messages containing links that give cybercriminals access to business systems when clicked on. Phishing is getting more sophisticated – mimicking, for example, emails announcing sales or discounts from household brands so well they're hard to tell apart from the real thing. 'Spear phishing' is more targeted and personalized. It might, for example, target those in an organization most likely to take the bait, or mimic a target organization's internal newsletter or email format. Cybercriminals also engage in social engineering one-on-one. For example, they may phone employees saying they're from the IT support desk and try to persuade the employee to share their login and password details. Cyber hygiene Maintaining good cyber hygiene means everyday practices that make it harder for cybercriminals to access systems. The actions that make up cyber hygiene will hopefully be familiar, for example: Having complex passwords, always using a VPN when working remotely and deleting digital information you no longer need. How to stop employee leaks Cybersecurity awareness training aims to teach cyber hygiene alongside the broader education employees need to notice and avoid falling for social engineering tricks. Earlier Kaspersky research in partnership with Longitude, a thought leadership agency within the Financial Times Group, found businesses confident in their cyber skills programs also report better overall cyberattack preparedness. While cybersecurity experts should upskill regularly, the research highlights the importance of training all staff – beyond the IT department – to create a company-wide cybersecurity culture. One-off training is also not enough: staff need to absorb ideas and practice skills to make new habits. Heathrow Airport's innovative employee cyber awareness program aims to change behavior long-term with 'little and often' education targeted at those who need it most. Heathrow uses mock phishing emails to identify employees at risk of falling for cybercriminals' tricks, so they're not wasting time educating employees whose cyber awareness is already strong. Cybersecurity awareness training should also aim to encourage 'cyber pride' – building positive motivation for good cyber behavior rather than stoking fear. What about preventing employee sabotage? Comprehensive cybersecurity education may not be enough to prevent the 36 percent of employee-generated data leaks done by disgruntled employees. Examples of how employees have deliberately leaked data abound – from sharing customer data online to handing access keys to cybercriminals. Regular user access reviews – checking who has access to what and keeping all system access to a minimum – are important, but nothing surpasses the value of maintaining a positive workplace culture. Leaders need ways to 'temperature check' their organization beyond relying on the Personnel department or peers in senior leadership to thoroughly report concerns. Affected departments have a 'dog in the fight,' so to speak, and may not share everything they should. Ways to temperature-check include 360-degree feedback mechanisms – where all staff give anonymous feedback about their manager. Writing in Forbes, founder of Rungway workplace advice platform, Julie Chakraverty, says, "To… uncover hidden attitudes and views, you need to ask your employees how they feel. Lead by example by being fully open and transparent… [and] empower your employees to share their opinions and give honest feedback." The change in how data leaks happen, with more employees triggering them, should give every business pause for thought. Bringing leadership focus back to workplace culture and employee wellbeing has always paid dividends across the business, but we now understand its crucial importance in keeping data safe. Regular, targeted cybersecurity education, strong cyber hygiene and understanding how everyone in your organization is feeling should be central to your data protection strategy.

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interconnected technologies ai, occupation, professionals, people wearing helmets, industrial

The next big business challenge: How organizations are preparing to secure AI

  • Emerging tech
  • min read
    • Of all investments today, artificial intelligence (AI) is transforming enterprises, enabling them to provide improved services, automate processes and make better decisions. Business leaders must invest in the right tech at the right time, and have the people and systems in place that can guarantee success. AI will change most industries but also brings new risks and challenges in securing enterprises and safeguarding customers. Kaspersky's new research aims to help businesses stay ahead of the changes AI brings, published in this 2024 report, Connecting the future of business: How leaders should prepare for using and securing AI and interconnected technologies. About the interconnected tech research Kaspersky surveyed 560 IT security leaders in six regions – North America (US,) Latin America (LATAM: Brazil, Chile, Columbia and Mexico,) Europe (Austria, France, Germany and Switzerland,) Middle East and Africa (META: Saudi Arabia, South Africa, Turkey and United Arab Emirates,) Russia and Asia-Pacific (APAC: China, India and Indonesia.) Respondents were either aware of or involved in cybersecurity decisions about interconnected tech such as AI, web 3.0, data spaces, digital twins, augmented reality (AR,) virtual reality (VR,) 6G and internet of things (IoT.) They worked in organizations with at least 1,000 employees across many sectors. Kaspersky asked how they're introducing and securing AI and other interconnected technologies. Here's what the research revealed. AI is organizations' significant focus for the next two years AI is becoming a cornerstone for organizations striving to stay ahead thanks to its ability to foster innovation. In cybersecurity, AI offers predictive analytics and greater adaptability. Goldman Sachs says global investment in AI will reach 200 billion US dollars by 2025. AI is more than a technology. It's a strategy that lets organizations navigate today's complex business environment. AI adoption Nearly all organizations surveyed have already adopted (54 percent) or plan to adopt AI within two years (33 percent.) Respondents see Generative AI (GenAI) as valuable for improving security technologies' performance. Goldman Sachs economists Joseph Briggs and Devesh Kodnani say GenAI could boost global labor productivity by more than one percentage point yearly once its use becomes widespread. IT companies worldwide are upskilling their workforce and undertaking GenAI pilots to avoid falling behind. IT giants Accenture pledged three billion US dollars to data and AI investment, while French tech firm Capgemini is putting two billion Euros towards GenAI over the next three years. Securing AI 49 percent of organizations said they were extremely well, or well prepared, to secure AI. Almost 50 percent think AI is slightly or not at all hard to secure. Compared with securing other interconnected technologies, most organizations felt more prepared to secure AI. In responding to Kaspersky's survey, the head of cybersecurity at a Brazilian bank said, "I mostly don't find security problems with GenAI. We already understand how to run and train it." While many organizations feel confident in their ability to secure AI, a little over half felt less than well-prepared to secure AI. These businesses need to do more to prepare for the inevitable scale-up of AI-based technologies. AI makes digital trust and data compliance indispensable AI introduces new challenges and complexities in protecting sensitive data and maintaining digital trust. Digital trust is an aspect of customer trust. In Kaspersky podcast Insight Story, emerging tech security expert Malek Ben Salem described digital trust as, "Our confidence that our privacy is protected and secured, the reliability of digital transactions and how sure we are of the identities of those we engage with." Tech researchers McKinsey's 2022 Digital Trust report said 70 percent of people trust companies to protect their privacy, but most companies aren't meeting their expectations. Data breaches, unauthorized access and privacy violations can erode digital trust and lead to reputation damage, lost business and regulatory consequences. Building digital trust takes time but is essential to users' confidence in AI. How AI impacts digital trust AI lets organizations collect and store more data about customers, operations and interactions. This wealth of data helps gain insight but also means more risk of breaches. AI facilitates sharing data between devices, networks and organizations. Data sharing aids collaboration, efficiency and innovation but also means more opportunities for unauthorized access. As it is relatively new, organizations may struggle to be clear about their practices and security around AI. Without clear communication, trust may break down. Top ways organizations are improving digital trust and compliance Adopting zero-trust frameworks is organizations' top response to the need to improve digital trust, with 81 percent already using or planning to adopt zero-trust within two years. Other actions include pursuing data privacy and cyber resilience regulations (74 percent) and digital sovereignty initiatives (73 percent.) Kaspersky's research found companies introducing zero-trust frameworks are better prepared to secure AI and other interconnected technologies: 51 percent of zero-trust framework early adopters said they were extremely well-prepared or well-prepared to secure these technologies, compared with just 27 percent of the rest. The zero-trust canvas: Painting the future of cybersecurity The rise of AI is opening the door for organizations to break with all traditions that don't work for today's tech realities. Traditional cybersecurity is vulnerable to insider attack because it relies on trusting those within a network's perimeter while viewing outsiders as suspicious. Enter: Zero-trust frameworks. The head of IT at cloud provider Searce said, "The zero-trust security model is the only framework that works. The traditional security model can't do the job, especially for interconnected technologies." Under zero-trust frameworks, every user and device must undergo continuous multi-factor authentication (MFA) and authorization, regardless of their trust level. Users and devices get the minimum access needed for their tasks, with constant monitoring of user activity, device behavior and network traffic. Regulation and compliance With each territory having different data protection and privacy legislation, global organizations find it hard to achieve consistent standards around AI. 62 percent of leaders find compliance certification hard. They want to see standardized compliance processes across regulations and say online tools and platforms, with clear guidelines, would further simplify certification. Handling growing challenges and preparing to secure AI With the scale of change AI will likely bring, organizations must have a strategy to prepare themselves to adopt and secure it. Kaspersky research uncovered four effective strategies to ensure readiness to secure AI and other interconnected technologies: Adopting security by design principles, training and upskilling your workforce, upgrading your cybersecurity solutions and meeting regulation and standards. The full report, Connecting the future of business, details each strategy. Interconnected technologies like AI bring huge business opportunities but also a new era of vulnerability to serious cyberthreats. With more data collected and transmitted, cybersecurity measures must get stronger. Organizations can use effective strategies to safeguard critical assets and fortify customer trust amid a growing interconnected landscape. Leaders must also resource cybersecurity well enough to enable access to improved cybersecurity solutions that can meet oncoming challenges.
interconnected technologies 4 strategies, Young, Woman, Touching, Sensitive, Screen, While, Selecting, Surface, Female

Four ways to prepare your business to secure AI and interconnected technologies

  • Emerging tech
  • min read
    • Of all business investments today, interconnected technologies – the growing network of devices, systems and applications connected to the internet and to each other – are the most vital and challenging. From artificial intelligence (AI) to data spaces to internet of things (IoT,) interconnected tech is letting enterprises gather more data, automate processes and make better decisions. While this 'Fourth Industrial Revolution' is propelling change in every industry, it also brings new risks and challenges in securing enterprises and safeguarding customers. Kaspersky's new research aims to help businesses stay ahead of the changes interconnected technologies bring, published in this 2024 report, Connecting the future of business: How leaders should prepare for using and securing AI and interconnected technologies. About our interconnected tech research Kaspersky surveyed 560 IT security leaders in six regions – North America (US,) Latin America (LATAM: Brazil, Chile, Columbia and Mexico,) Europe (Austria, France, Germany and Switzerland,) Middle East and Africa (META: Saudi Arabia, South Africa, Turkey and United Arab Emirates,) Russia and Asia-Pacific (APAC: China, India and Indonesia.) Respondents were either aware of or involved in cybersecurity decisions about interconnected technologies. They worked in organizations with at least 1,000 employees across many sectors. We asked how they're introducing and securing AI, web 3.0, data spaces, digital twins, augmented reality (AR,) virtual reality (VR,) 6G and internet of things (IoT.) Four interconnected tech preparation strategies With the scale of change these new technologies will likely bring, organizations must have strategies to prepare to adopt and secure interconnected tech. We found organizations that felt ready to secure interconnected tech tended to adopt four strategies: Embracing security by design principles, training and upskilling their workforce, upgrading their cybersecurity solutions and striving to meet regulation and standards. Here's a little more on each strategy. 1.    Adopting security by design principles Integrating cybersecurity into each stage of the software development lifecycle makes secure-by-design software and hardware more resilient to cyberattacks. Our research found leaders focused on integrating cybersecurity into development processes – dubbed Security by Design Promoters – were also better prepared to secure interconnected technologies. 50 percent of Security by Design Promoters felt prepared to secure interconnected tech, compared with 26 percent of the rest. Leadership teams can start promoting security by design by asking where in their design processes cybersecurity expertise is usually first involved. They may also play a role in ensuring budget for security testing during design. 2.   Training and upskilling your workforce With the right cybersecurity education, staff can be a formidable line of defense against cyberattacks. Building a cyberaware culture requires a strategy that empowers employees to gain knowledge and put it into practice. Our research found Training and Upskilling Promoters – organizations prioritizing training and upskilling their people – were better prepared to secure interconnected tech. 55 percent of Training and Upskilling Promoters felt prepared to secure interconnected tech, compared with 25 percent of the rest. Leaders we surveyed shared cybersecurity education approaches that worked well. They favored regular programs covering topics like cybersecurity policies and common cyberthreats, phishing simulations to identify further training needs and awareness campaigns sharing best practice and real-world cyber incident examples. Leaders also emphasized user-friendly security policies, greater collaboration with the IT and security teams and demonstrating good cybersecurity practice from the top. Leadership teams can support training and upskilling the workforce by asking how often employees receive cybersecurity training and how the organization measures their understanding. 3.   Upgrading cybersecurity solutions More devices connecting to the internet means more ways to attack. As businesses adopt these technologies, they need more advanced cybersecurity solutions, such as those with enhanced access controls, encryption and regulatory compliance. Our research found Advanced Cybersecurity Adopters — organizations focused on upgrading cybersecurity solutions — are better prepared to secure interconnected tech. 55 percent of Advanced Cybersecurity Adopters felt prepared to secure interconnected tech, compared with 22 percent of the rest. Advanced cybersecurity solutions let your business adapt to evolving threats, meet new regulation and protect critical data. The leadership team should ask what the organization knows about threats that suggest upgrading cybersecurity solutions, how to minimize the impact of upgrading solutions on workflows and how to ensure employees can use the upgraded tools effectively. 4.   Meeting regulation and standards To avoid legal problems or reputation damage, your cybersecurity practice must meet changing standards and legal requirements. Our research found organizations prioritizing meeting new regulation and standards — Regulation Promoters — are better prepared to secure interconnected tech. 40 percent of Regulation Promoters felt prepared to secure interconnected tech, compared with 27 percent of the rest. To better meet regulation and standards, leadership teams can ask if the organization already meets all security regulation and standards, and if not, which to prioritize. You might also look at how to use cybersecurity compliance processes to build customer's digital trust. Interconnected technologies bring huge business opportunities but also a new era of vulnerability to serious cyberthreats. With more data collected and transmitted, cybersecurity measures must get stronger. Organizations can use these four strategies to safeguard critical assets and fortify customer trust amid a growing interconnected landscape. Leaders must also resource cybersecurity well enough to enable access to new cybersecurity solutions that can meet interconnected tech's oncoming challenges.
ransomware brazil, computer screen with code

The day ransomware nearly stole thousands of young people’s data in São Paulo

  • Data and privacy
  • min read
    • There's an awesome purpose behind São Paulo, Brazil's 121 youth justice centers, Fundação CASA: Every day, they work with teenagers who have committed offenses and been given a court-ordered chance to learn to change their ways. But with 5,000 teenagers accessing a network of some 10,000 devices, Fundação CASA's information security and cybernetics team must manage a tinderbox of cybersecurity risk daily. 24 hours to escape a ransomware attack is the latest film in Tomorrow Unlocked's hacker:HUNTER Behind the Screens series. Fundação CASA's cybercrime fighters tell how they foiled a ransomware attack in a day, successfully safeguarding their young clients' personal data. There's much any organization or business can learn from their winning formula. Young people sentenced to learning When young people commit a criminal offense in São Paulo, the courts may sentence them to rehabilitation through learning how to escape criminal behavior patterns. That's where Fundação CASA comes in: They deliver that education on behalf of the Department of Justice and Citizenship. Meanwhile, the private data of the 5,000 teens who attend one of Fundação CASA's 121 centers must be kept secure. Julio Signorini has worked for Fundação CASA for over 20 years. He says, "As they're taught by the state, the teens' data comes under the Child and Adolescent Statute (ECA.) There's always a risk their data may be leaked." What is ransomware? There are many ways the young people's data could be leaked, including deliberate cyberattacks. Julio says, "A constant threat for us is ransomware: Malicious software that encrypts your data and demands you pay to recover it." To spread ransomware, attackers use social engineering to find users' vulnerabilities. Then the malware can spread across the network, eventually encrypting files and demanding a ransom. Ransomware is a growing threat. Kaspersky software detected over 21,000 ransomware strains and saw attacks rise 63 percent between 2021 and 2022 as a proportion of total attacks. Rapid response foils attack Julio explains how Fundação CASA's most recent ransomware incident began. "A young person brought in a compromised USB flash drive from home." Alex Christy Rogatti, Fundação CASA's Head of Security, remembers the day well. "It was a tense time because it was our first experience with ransomware, but we addressed it in one day." Julio says their fast response started with their young client's good decision to report something unusual. "The young person noticed his device behaving strangely and contacted our service desk, who quickly escalated the case to our information security and cybernetics team." Alex explains what happened next: "We isolated the infected device and recovered encrypted data on that device and our network. We isolated the malware so it couldn't spread further." Should you pay the ransom? Not every organization responds so fast and effectively as Fundação CASA. Proving there's no low cybercriminals won't sink to, 2023 saw some particularly vicious ransomware attacks, like a ransomware gang breaching Lehigh Valley Health Network in Pennsylvania, US, then leaking stolen photos and personal details of breast cancer patients. It's the severity of cases like these that tempts some victims of ransomware to pay their captors. Fundação CASA's Chief Information Security Officer (CISO) Odenilson Dos Santos Bonfim says, "Paying the ransom should be the last option. First, there's no guarantee they'll let you unencrypt your data when you pay. Second, paying the ransom encourages more ransomware. Third, you'd share financial information they may use in a scam or financial crime in future." To help ransomware victims and deter these kinds of attacks, Kaspersky is a found partner of the No More Ransom initiative. It offers free ransomware decryption tools and advice on how to prevent and deal with ransomware attacks. Reducing business vulnerability to ransomware Odenilson thinks there's much business can do to prevent more cyberattacks of all kinds. "We maintain an always up-to-date environment, with effective solutions for monitoring data and preventing any type of attack." That a user first raised the alarm about this attack shows the importance of a cyber-aware organizational culture. Odenilson says, "It's fundamental to encourage awareness, good market practices and publicize information security and cybersecurity information to your whole team and organization." How the ransomware attack on Fundação CASA was stopped echoes the importance of their work showing young people alternatives to a life of crime. By doing the right thing thanks to knowing what to do, one young person kickstarted the process that safeguarded their peers' precious personal data. The quick thinking and coordinated action of the service desk and information security and cybernetics teams shows how strong relationships make strong cybersecurity.
Cybersecurity predictions 2024, a bright bridge leads to the darkness

Growing cyberthreats for business leaders to keep on top of in 2024

  • Threat intelligence
  • min read
    • Just as things seemed to be settling down post-pandemic, 2023 turned out to be a year of global political upheaval, conflict and climate catastrophe. Recession impacts and rising prices for business basics like electricity have seen closures rise and start-ups decline. Congratulations are in order if your organization still has its head above water. The last thing any business needs in 2024 is a highly damaging and costly cyberattack or data leak. IBM's 2023 Cost of a Data Breach report found, "The average cost of a data breach reached an all-time high in 2023 of 4.45 million US dollars," having increased over 15 percent in the past three years. Keeping track of how cyberthreats are changing and adjusting your cybersecurity strategy and resourcing accordingly will help businesses avoid the punishing cost of a breach. Here are some of the changing and new threats Kaspersky researchers think you should prepare for in 2024. AI-related threats AI and other interconnected technologies – think augmented reality (AR,) 6G, data spaces and more – made a huge splash for business in 2023, and we'll soon be releasing some exciting new research about the impact of their widespread adoption. On top of that, we think these changes will loom large for AI in 2024: 1.    AI tools will make scams more convincing Scammers use many techniques to get past our defenses. AI tools can now effortlessly create stunning images, even designing whole landing pages. Malicious actors will, of course, use these to craft more convincing materials for fraud, like fake marketing emails and login screens. Expect fraud-related cyberthreats to increase. What to do about it: Improve your employee cybersecurity awareness education to help them become more vigilant to potentially fraudulent content. Use robust antivirus software to block scam emails and warn about suspicious websites. 2.    Concerns about pre-trained AI models will rise As more organizations start using AI chatbots and large language models (LLMs) to help professionals with their work, privacy and security concerns around the data fueling these models will rise, especially in large businesses that deal with a lot of information. And for good reason – training common LLMs often relies on public datasets containing sensitive information, raising uncertainty about whether corporate data fed into these models will stay confidential or be used to train the model further. What to do about it: Businesses must adopt policies limiting how employees can use AI products and educate staff about these policies to reduce the risk of data leaks. They may also adopt Private Large Language Models (PLLMs) – these models are trained only with datasets owned by the organization using them. 3.    AI regulation will ramp up More countries and international organizations will join efforts to regulate AI in the coming year, especially African and Asian nations that are engaged in discussions but haven't yet begun regulating AI domestically. Those already involved will expand regulation, adopting more specific rules, for example, around creating training datasets and using personal data. With their experience developing and using AI, businesses can offer invaluable insight for discussions on AI regulation. Policymakers worldwide are actively seeking input from businesses, academia and the public on shaping AI governance. In 2023, the Bletchley Declaration promoted greater uniformity in AI regulation. But with rising geopolitical tensions, cooperation between countries may reduce, derailing efforts to keep it consistent. What to do about it: Ensure your business is staying ahead of developments in regulation and planning for how it will comply. Take opportunities to get involved in developing AI regulation. More 2024 AI security predictions from Kaspersky researchers Financial services threats 4.    Fraudsters will target direct payment systems Cybercriminals will exploit increasingly popular direct payment systems like Brazil's Pix, the US's FedNow and India's UPI for fraud. We'll also see more clipboard malware – malware that steals data users copy to their clipboard – designed to attack new direct payment systems. Mobile banking trojans will increasingly exploit these systems as a quick and efficient means of cashing out ill-gotten gains. What to do about it: Direct payment systems have enormous benefits for business but must be appropriately secured. Businesses can also educate customers to help reduce their likelihood of accidentally downloading clipboard malware or mobile banking trojans – often disguised as legitimate apps in trusted app stores. 5.    Mobile Automated Transfer Systems (ATS) will spread worldwide Mobile Automated Transfer System (ATS) attacks are fairly new and involve banking malware making fraudulent transactions when the user logs in to their banking app. Mobile ATS has only been seen in Brazilian malware types but could go global in 2024. What to do about it: Those who make banking apps must ensure their security is capable of defending against Mobile ATS. 6.    Brazilian banking trojans will also keep spreading Cybercrime originating from Brazil is well-known to be growing. As many Eastern European cybercriminals have shifted focus to ransomware, Brazilian banking trojans will fill the void left by desktop banking trojans. Trojan Grandoreiro has already targeted more than 900 banks in 40 countries. Grandoreiro attacks start with a malicious link in a phishing email, including fake shared documents, utility bills and tax forms. It then harvests data using keyloggers, screen-grabbers or overlays on online banking login pages. What to do about it: Despite the growing sophistication, cybersecurity awareness education still helps employees and customers avoid falling prey to phishing. Businesses must also make sure users feel comfortable reporting their suspicions. More financial services cybersecurity predictions for 2024 Advanced persistent threats 7.    Creative exploits of wearables and smart devices will grow In 2023, Kaspersky discovered Operation Triangulation – a stealthy new espionage campaign targeting Apple devices. Kaspersky's investigation found five vulnerabilities in Apple's operating systems that affect everything Apple – from smartphones to wearable devices to smart home gadgets like Apple TV and Apple Watch. In 2024, we'll see more advanced attacks on consumer devices and smart home technology, including other operating systems. Devices like smart home cameras and connected car systems are attractive for threat actors because of their surveillance potential and tendency to run on outdated software, which makes them easier to attack. What to do about it: Secure your business Internet of Things (IoT) devices and ensure that if they don't need to connect to the internet, they don't. 8.    Supply chain attacks-as-a-service: Bulk-buying access There is a growing trend of attacking businesses through their suppliers. Small and medium companies that may lack advanced protection become gateways for hackers to access the data and infrastructure of big players. 2022 and 2023 saw breaches through identity management company Okta, which serves over 18,000 customers worldwide. What to do about it: Supply chain attacks expert Eliza-May Austin has great advice on preventing supply chain attacks in this Tomorrow Unlocked video: 9.    More attacks on Managed File Transfer systems Managed File Transfer (MFT) systems that let businesses securely exchange sensitive information with partners have become a cornerstone of organizational efficiency. But housing confidential information like intellectual property, financial records and customer data puts them in the crosshairs of cyber adversaries. MFT systems' intricate architecture and integration into business networks also means potential security weaknesses. In 2023, MFT system incidents involving MOVEit and GoAnywhere confirmed this. What to do about it: Undertake comprehensive reviews of your MFT solutions to identify and reduce security weaknesses. Implement robust Data Loss Prevention (DLP) solutions, encrypt sensitive data and build a cybersecurity awareness culture among employees. More advanced persistent threat predictions for 2024 With attention to where threats will likely grow, the year ahead need not be daunting for business. From getting ahead of AI regulation to improved cybersecurity awareness education, organizations of all sizes can stay secure even as threats grow.
insight story, ethical and ai, robot communicates with people

As AI’s influence rapidly expands, here’s how business ethics must keep up

  • Leadership
  • min read
    • We live in a world where algorithms can make decisions and data fuels innovation. It means ethical considerations are more critical than ever for business. They must balance using new technology to increase competitive advantage while preserving integrity and protecting customers. In our podcast Insight Story, experts Tomoko Yokoi (Switzerland,) senior business executive and researcher at Global Centre for Digital Business Transformation, IMD Business School and Andy Crouch (UK,) consultant and co-founder of ethical-AI natural language processing company, Akumen, outline how AI biases can impact business and what steps they can take to ensure its fairness. Kaspersky Global Research and Analysis Team's Dr. Amin Hasbini expands on the privacy and responsible data use implications. Not all AI is created ethically equal Andy's company Akumen found a problem that needed solving. "Scores out of five are useful, but we wanted insight from written responses like product reviews, and there was no way to do it. The team created an AI solution to identify meaning like topics, emotions and sentiment. Sentiment measures opinion – positive, negative or neutral – but emotions drive behavior. It works on text feedback anywhere, which might be about consumer goods, healthcare or anything else." Their approach uses AI differently from generative AI tools like ChatGPT. "Our AI is rule-based, human-created and human-curated. It's completely transparent and there are no algorithms as with large language models. We can dive in and make rules more nuanced if we recognize bias. With large language models, that would be complex and expensive." Andy expands on generative AI's limits for truly understanding people. "We asked ChatGPT how many emotions humans experience – it said 138,000. That doesn't help us understand what drives behavior. Our platform has 22 emotions – enough to see what drives behavior. Through our partner, Civicom, we're helping the UK's national health service (NHS) to understand what patients and staff experience." And that understanding can improve lives: Larger language models use big data pools, but there are also more contained, enterprise-level tools like ChatGPT Enterprise that businesses can furnish with their own data and control how they use it. Tomoko sees enterprise-level tools as useful but notes they can't do what big data can do. "Organizations are developing new functions around AI, like data annotators, who clean data before it goes into models. But is it foolproof? The beauty of using data from everywhere is it gives you insights you otherwise wouldn't get." Choosing ethical suppliers Luckily for companies using AI ethically, more businesses are adopting digital responsibility policies and choosing ethics-first suppliers. Tomoko gives an example. "Deutsche Telekom has been a pioneer in AI ethics. They've trained all employees to ensure AI ethics are distributed throughout the organization. At the same time, they have about 300 suppliers and ensure it's in all their contracts. So it goes beyond the boundaries of the company." But many businesses don't know where to start. Tomoko says, "Over 250 companies have committed to AI ethics, but codified mechanisms only help if they change behavior. How can we live these principles and ideals? External experts can help, and there's a case for individuals taking responsibility, which will have a collective impact." She suggests how companies frame AI ethics matters. "You can see AI ethics as value or as compliance. If it's compliance, it will be cost- or risk-driven. But AI ethics could also be a competitive advantage." Andy compares AI ethics to health and safety. "If you have a health and safety director, it's only one person's responsibility. Change won't happen unless everyone understands health and safety's importance, and especially that it drives productivity and revenue." The competitive advantage is real. McKinsey research found 72 percent of customers considered a business's AI policy before making an AI-related purchase. Tomoko highlights the importance of backing up policies with action. Which AI issues should companies care about? Tomoko outlines three places to look. "First, consider the software development lifecycle. If you're considering developing an AI product, think of how it's designed. Look for bias in the data. "Second, once it's being developed, although many companies say they're implementing AI ethics, people developing AI-driven products don't know how to apply those principles. So, look at how people use ethical principles in day-to-day software development. "Third, we test products in controlled environments. Once it launches, ask who is monitoring it and how we ensure it doesn't gather bias and that people use it correctly." Tomoko is part of IMD Business School and knows that what future executives learn about AI ethics will shape future companies' ethical behaviors with AI. She says, "First, we say everyone has a responsibility to these issues that goes beyond the company. You need to be aware of this responsibility, but also be able to make others in your team aware." Secondly, "What type of organizations do we want to build? We coach people to be able to handle multiple goals – not only profit but also social, environmental and ethical goals. We want them to walk away thinking of the future." Andy drills down into the data AI is using. "Understand how the AI model is built. Is the data you're analyzing through that AI model ethically sourced, and are you using it ethically? The lack of transparency over large language models is rife for ethical risk and bias." AI training data bias can have life-threatening impacts. Poor AI translations have been found to be jeopardizing asylum claims. Andy sees retrieval-augmented generation (RAG,) which uses more proofed datasets, as part of the solution. Can we have secure and well-regulated AI? Dr. Amin Hasbini. Head of Research Centre, Middle East, Turkey and Africa for Kaspersky Global Research and Analysis Team, thinks AI ethical standards are needed. "AI won't self-define its ethics. They must be programmed with ethical standards." Since there is almost no way the public can evaluate, critique or improve AI ethics, regulation must play a part, according to Amin. "We need security and safety by design, and continuous verification of it. That would require transparency, especially from big tech vendors, and letting the public influence how these technologies develop." He likens the challenge to that of regulating social media. "We're asking people to adopt technologies that can do much damage without giving them ways to ensure that doesn't happen. The same has happened before with social media, with it being used for data leaks and fake news. European Union regulation is moving fast around AI, but AI could be much more dangerous than social media – we need rules now." For improved ethical data use, Amin recommends asset management controls. "If well deployed, asset management controls allow data to be classified, including which is available to AI, which can be shared publicly and which needs to stay inside the organization." Andy says regulation is hard in this fast-moving space because no one knows what's coming next. "I question anyone saying they know what will happen in the next six months or beyond. But there's a lot of fear and lobbying going on – so go slow. If your AI-driven capability can't deliver because it's non-compliant, ethically or otherwise, it will be damaging." However, he believes regulation is necessary. "It will be interesting to see how they regulate something that's not easily defined and morphs quickly, but we must protect those who need protecting." Kaspersky has recently proposed six principles for ethical use of AI in the cybersecurity industry with transparency at the core. Getting started with AI ethics Our experts have straightforward advice for those business executives yet to approach AI ethics. Tomoko says, "As a mindset, remember the analog and digital worlds are the same. Your analog-world values should extend into the digital world." Andy highlights the need for both widespread knowledge and deep expertise. "Get your whole team conversant with AI, but have a well-informed friend who lives and breathes this stuff to call when there are challenges." With headlines about AI taking our jobs and AI founders like Geoffrey Hinton sounding the alarm on unregulated AI perils, it's easy to write off AI ethics as a problem too hard to fix. But these complex issues need priority. There are green shoots of change. In December 2023, the AI Alliance launched to focus on developing AI responsibly, including safety and security tools. Its 50 members include Meta, IBM, CERN and Cornell. The message may be, 'Let's not move too fast and not break things.' With OpenAI, creators of ChatGPT, not invited to the party, could the tortoise of collective corporations beat the nimble hare of innovation? AI gives business potential for great gains but comes with great risks to reputation, security and privacy. With strong ethical AI policies translated into action and widespread knowledge among employees, businesses can have more confidence to take advantage of AI's many benefits.
insight story digital sovereignty

Digital sovereignty and the rise of data spaces: What does it mean for business?

  • Data and privacy
  • min read
    • Data. It seems businesses can't live with it – without big friction – and can't live without it. Cory Doctorow wrote for Secure Futures in 2020 that data – rather than being the 'new oil' – can fast become toxic waste, without due attention to minimization and proper management. Now data fuels almost every business, it's critical leaders understand the next evolution of data regulation – digital sovereignty – and how it applies to their work. It's not just about complying with the law, but an opportunity for competitive advantage with the bonus of enhancing customer trust. In our podcast Insight Story, experts Ben Farrand (UK,) Professor in Law and Emerging Technologies at Newcastle University and Sille Sepp (Finland,) Director of Operations at MyData Global, explore how business can do better in an increasingly interconnected world. Dr. Amin Hasbini of Kaspersky's Global Research and Analysis Team talks about the role of transparency in digital sovereignty, and why sharing intelligence makes good business sense. What is digital sovereignty, and what does it mean for business? Ben says, "Digital sovereignty is about geopolitics. We're seeing increasing tensions between states and concern over the power of big market players like Google, Amazon and Facebook in the US and Chinese companies like Baidu, Alibaba and Tencent. When data moves between countries, there may be detrimental impacts from geopolitics and national regimes, regulations or policies." Against this backdrop, the EU introduced its General Data Protection Regulation (GDPR) in 2016, providing that identifying, personal or sensitive data about EU citizens kept anywhere in the world is governed by EU law. GDPR and digital sovereignty more broadly mean companies must think about the legal implications of their cross-border interactions. Ben recommends firms wanting to trade more internationally have people dedicated to data security and digital sovereignty. "Companies handling EU citizens' personal data need someone aware of how to comply with GDPR's requirements. In the EU and UK, they're often called data protection officers. They must know data security protocols, and how data can and can't be used." Can state concerns and business interests align? Businesses often don't have the same priorities as nations. Is digital sovereignty making it harder to trade internationally? Ben says, "Digital sovereignty covers the whole supply chain from raw materials to cybersecurity services. For example, when supply chains for semiconductors collapsed during the pandemic, shutting some car manufacturers, the EU, China and the US started seeking more control of resources." But he questions the merit of attempts at strategic autonomy in today's world. Getting ahead of compliance with data ethics Digital sovereignty is on the radar for many businesses, but those who go the extra mile to do the right thing, rather than simply comply, may see advantages. Ben says, "We'll see both 'stick' and 'carrot' regulation. There's much legislation about investment, like the US CHIPS and Science Act, around how companies can cooperate and seek funding to diversify supply chains, for improving trade relations with third parties in ways that build resilience." Businesses should also note a growing focus on regulating social media platforms, given its role in communicating with customers. "The EU recently passed the Digital Services Act. It applies to content on social media platforms and search engines that may be illegal in member states, such as hate speech or trade in prohibited goods," says Ben. The legislation isn't concerned with individual instances of illegal content but requires social media platforms and search engines to have transparency, accountability and oversight systems. Ben sees benefits for business. "Companies don't want to be associated with illegal or immoral things. They already manage this by pulling advertising or moving over to other platforms. Digital sovereignty isn't just coming from regulation, but market-based decisions." AI and digital sovereignty The explosion of AI systems has made it even more important that organizations are clear on data ownership. Ben sees regulation in this field coming soon. "The EU is talking about regulating high-risk systems because they believe AI shouldn't be doing some things." And it's not just the EU. "At the AI Safety Summit hosted by UK Prime Minister Rishi Sunak in November 2023, there was an agreement between the EU, US, China and others to take a united approach in managing high-risk systems." Again, there are business opportunities. "New technologies arise from regulation like the 'federated computing' approach, where you train AI on data sets remotely then communicate only the outcomes centrally, minimizing data privacy risks," explains Ben. Making space for data security and data power All businesses want to use their data better for innovation and growth. But it may be challenging to do so securely, fairly and in ways customers trust. Data spaces are one tool for addressing safe and ethical data use while leveraging its power for better business. Sille Sepp is Director of Operations at human-centered data non-profit MyDataGlobal. She explains data spaces: "They're a systemic approach to increasing trust and sovereignty in sharing and using data across organizations and sectors. It's not just technological infrastructure but includes business, legal and operational layers for trustworthy data sharing." Examples include the Smart Connected Supplier Network for manufacturing supply chains and Catena-X for automotive supply chains. MyData is involved in a cross-data space project, Data Spaces Support Center, and preparing for the Data Space for Skills. Businesses can join projects as a data provider, data user or enabling service, or look at creating their own data space with collaborators. Sille recommends how to start: "As a partner in the Data Spaces Support Center, I recommend exploring the website, the repositories of initiatives and the contributing partners. Associations like International Data Spaces, Gaia-X and FIWARE have long mapped data space work." Data spaces go beyond EU-based businesses. "Many initiatives collaborate with international partners and look at business cases that will bring global benefits," says Sille. Sille highlights the need to put customer control of their data at the heart of developing data spaces. "When developing design principles and architecture for data spaces, we must embed human-centric principles. There are ways to empower people through design choices. Businesses can get involved as enabling services – intermediaries that serve the interests of individuals, managing permissions and returning value to them." Transparency's role in digital sovereignty Dr. Amin Hasbini of Kaspersky's Global Research and Analysis Team explains how tech businesses can use transparency centers to uphold different states' digital sovereignty worldwide. "Digital sovereignty means companies, especially multinationals operating in digital, need tools that comply with regulation in countries where they operate. As an example, Kaspersky operates transparency centers in several countries. These let entities check code to ensure it complies with their laws." But he thinks international firms can go further in building regulators' trust. Sharing also benefits the industry as a whole. "We publish many of our threat intelligence findings, which means better threat visibility for everyone. The cybersecurity community can build on our findings," says Amin. Taking the first steps into digital sovereignty Ben advises businesses to consider the basics as they start exploring digital sovereignty. "What data are you collecting and where does it go? Once you know that, you can think through the implications: Security provisions you may need to protect data within your company and outside. Think first about why you need this data, and that will help you define every step of the process." Let's be super clear: Digital sovereignty, like all matters of global trade, is complex. It's not an off-the-shelf charter or compliance checklist. Enterprises should grasp the opportunity now to get involved with data spaces and other cooperation projects to shape the new international standards for data. Digital sovereignty regulation will only grow – particularly around the use of AI. Businesses should think through how they use data and what security should be in place to safeguard it. Digital sovereignty also presents opportunities for better business, such as through data spaces and transparency initiatives.
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Secure Futures magazine is your go-to business guide for opinions, trends and insight into the world of technology and cybersecurity. We help your business to bring on the future. Brought to you by Kaspersky, the global cybersecurity experts.

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