Take on
Tomorrow

How can business help solve society’s biggest challenges?

Take on Tomorrow is back for Series 2: a new season of the award-winning podcast that examines the biggest problems facing society and the role business can—and should—play in solving them. Hosted by Ayesha Hazarika, a broadcaster and writer in London, and Lizzie O’Leary, a journalist in New York, this series breaks new ground, taking on timely topics like generative AI, nature positive business, and the skills-first approach to hiring. Plus, we’re taking the podcast on the road, recording episodes at key global events such as Climate Week NYC and the 2024 meeting of the World Economic Forum. Stay tuned for new episodes, dropping every two weeks.

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Latest episode: How is GenAI reshaping cybersecurity?

Today’s cybersecurity landscape is transforming at a staggering pace—with generative AI enabling more sophisticated attacks and more innovative defense strategies. In this episode, we explore the new equilibrium in digital security, highlighting the dual potential of GenAI technology as both a threat and a shield. With insights from Microsoft’s Chief Security Advisor in EMEA, we discuss how advancements in AI are setting the stage for an intense race to protect our digital future.

Sarah Armstrong-Smith: If cybercrime was a country, it would be the third-biggest country in the world in terms of gross domestic product. It would also be the fastest-growing economy in the world.

Sean Joyce: A lot of times you hear the number of attacks per day, several hundred-thousand attacks. Think about this in the physical world, about someone checking whether your door is locked or your window is open.

Sarah: Whether we are attackers or defenders, we have access to very similar tools and technology. So we’re at a very even playing field at the moment.

Lizzie O’Leary: From PwC’s management publication, strategy and business, this is Take on Tomorrow, the podcast that brings together experts from around the globe to figure out what businesses could and should be doing to tackle some of the biggest issues facing the world. I’m Lizzie O’Leary, a podcaster and journalist in New York.

Ayesha Hazarika: I’m Ayesha Hazarika, a broadcaster and writer in London. Today, we’re looking at how generative AI is transforming cybersecurity.

Lizzie: This is a topic that matters for everyone, from educational systems to local businesses to your own identity. Cyberattacks are on the rise, with generative AI playing a central role. Organizations like the National Cybersecurity Center have warned that AI tools are going to make phishing emails more sophisticated, while attacks are also expected to increase. But the technology offers a big opportunity for defenders, too. PwC’s Global Digital Trust Insights Survey found that nearly 70% of senior leaders will use GenAI for cyber defense in the next year. It’s a complex web that’s not easy to untangle.

Ayesha: So how can leaders successfully use GenAI to detect attacks and protect their businesses? And what’s at stake for all of us if we aren’t paying close enough attention to the risk? To find out, we’ll be talking to Sarah Armstrong-Smith, the Chief Security Advisor for Microsoft EMEA, who helps Microsoft customers develop their cybersecurity strategy. But first, we’re joined by Sean Joyce, PwC’s Global Cybersecurity and Privacy Leader. Sean, hello, and welcome.

Sean: Hi, Ayesha. Glad to be here.

Ayesha: Now, Sean, we now regularly see news stories about organizations that have suffered major attacks. People generally know there’s a problem. But there are so many other things in the world right now. Why should we pay particular attention to cybersecurity?

Sean: So it’s a great question. And I think, often, you know, the CEOs and the C-suite listening out there—a lot of times, you hear the number of attacks per day, several hundred-thousand attacks. Think about this in the physical world, about someone checking whether your door is locked or your window is open. So those are the things that are happening every day. So, the business interruption it can cause, the actual effect it can have on future growth opportunities. I was at Davos, and the theme this year was about rebuilding trust. And a lot of times, we say that word trust, but many people don’t know what it means. And to me, we’re talking about things that we can actually show the customers that they can trust us. And then, the last thing is what I would call brand integrity. We’re seeing a lot of things with misinformation, disinformation, that it is critical for companies to pay attention to what is happening out in the cyber space and ensure that they are being protected appropriately. So, business impact, customer trust, and brand integrity are three important things that every company needs to be paying attention to.

Ayesha: Now, Sean, we’re going to come back to you later in the show to find out how companies can leverage GenAI for cyber defense. But first, Lizzie, you’ve spoken to someone who’s really working at the forefront of this challenge.

Lizzie: That’s right. I spoke to Sarah Armstrong-Smith, Chief Security Advisor at Microsoft EMEA. I was really interested to hear what cybercrime looks like today. So I began by asking her about the most common kinds of attacks she sees in her role on a day-to-day basis.

Sarah: I think it’s fair to say that over 80% of all cyberattacks still start with some kind of phishing email or text message. But, actually, over the last 12 months, we have really seen the number of identity-based attacks absolutely skyrocketing. And I just kind of put that into perspective. So, Microsoft blocks over 240,000 identity-based attacks every single minute of every single day. This is, in essence, an attacker being able to get access to your password and utilizing that, what we call password sprays, to see how many accounts it opens. So they’re hitting retailers, financial services, just looking at how many accounts does this open. And it just spirals from there. So we’re seeing business email compromises at an all-time high. We’re tracking 156,000 attempts every single day, and ransomware has also had a 200% increase in the last 12 months. So cybercrime itself is absolutely skyrocketing.

Lizzie: If you’re an organization, whether you’re a company or a public good, how do you currently defend yourself against cyberattacks?

Sarah: So, the best will in the world, the best technology, awareness training, you have to assume that a threat actor can get access into your network, get access to your data. The second thing is, most people, particularly in a work environment, have way too many privileges. If you’ve been in the organization for multiple years, it’s probably very rare that a company actually takes away those privileges. So, from an attacker’s perspective, you are able to get access into that account. You can imagine how much they can do with that account. So, in essence, how do I know the difference between a compromised user and a malicious user? So, just because someone presents themselves with the right device, the right log-in, we have to carry on monitoring what they’re doing after the fact. They’re trying to get access to things they wouldn’t normally access? And that’s kind of that principle of zero trust.

Lizzie: I’m really curious how generative AI fits into this landscape. Is it being used to foment cyberattacks? I mean, is it as simple as, you know, writing a prompt that says, write me a phishing email? And then it gets deployed on a bunch of unsuspecting targets?

Sarah: Yes. It’s really interesting when we talk about GenAI, in particular. It’s still relatively new. So it’s only been around for about two years. If we think about something like ChatGPT, for example, that’s been out for just over a year, people start to get worried that the machine itself is writing a phishing email. So I think the first thing that we just want to make sure that people understand is that the machine itself is not doing anything; it’s the human behind the machine. It’s trying to manipulate the machine. So, if I just say, write me a phishing email on ABC, if it’s been programmed correctly, it’ll say, I’m a responsible AI. I’m not doing that. The way I get around that is to say, imagine I’m someone in marketing. Imagine I have a nice, shiny new product, and I want to give someone a discount, how would I word this email in such a way to entice somebody to want to go to my website? You can kind of see it’s not what we say, it’s how you say it. And what we’re kind of seeing is a real big area of focus in what we call prompt engineering, and how somebody might try and get around some of those controls that tech companies or companies themselves are putting into play.

Lizzie: Well, is there a role, then, for leveraging GenAI in the defenses that companies can use?

Sarah: So, absolutely, there is a real case for defenders being able to leverage this level of technology. So, one of the things that makes ChatGPT and generative AI so popular and so good at what they do is the fact that you could ask a question in plain English—let’s say, well, in whatever language you’re utilizing—and get a plain English answer back. Let’s say there’s a new strain of malware. I’ve never seen this malware before. Can you tell me what the code does? Can you also tell me when the code was added to the system? How do I remove the codes? There’s lots of real things like that. It’s just providing an extra layer into that security operation. So I think the real thing that we want to kind of think about is how is it augmenting the human, augmenting the information available to the human, not replacing the human?

Lizzie: When I’m thinking about risk, I know you think about this all the time. I know that company executives think about this, defending their company. But I wonder if this seeps into the general consciousness. I’d love to use the example of the cyberattack on the British library. I feel like that might be a moment where the scope of risk occurs to the general public, that this isn’t just about your yearly cybersecurity training, but the idea that this is a risk more broadly to society. Do you think that lands to the regular person?

Sarah: I think more and more people are understanding the threat and the reality of the threat. Because identity is so precious. And sometimes I have zero choice about who has my data and what they’re doing with that data. I think there’s a stat that says 50% of all people born today are going live to over 100. So that’s 100 years of data that multiple different agencies, companies, from the day you’re born to the day you die, have about you. Any of that data is wrong, any of that data that’s utilized in the wrong way, or how, is it being utilized to train systems? You can really see the detrimental impact that could have on individuals. And, now, it might be surprising for some of your listeners, but the most-attacked sector, month on month, is actually education. Education is attacked ten times more than the next sector, which is actually retail.

Lizzie: Because they don’t have the big defenses?

Sarah: Yeah. Very much so. So, if you think about just, you know, children from kindergarten all the way through to school, college, university, they don’t have the same level of security controls that other organizations have. And I think one of the things I find quite frightening is some attackers who are stealing the identity of children and using their identity to open, let’s say, a new account.

Lizzie: Wow.

Sarah: And the reason why is because nobody’s looking for them. For most people, you have to be 18 years old to open a bank account or a credit card or anything of those. And so, when they are kind of going into the workplace or opening their first bank account or whatever they’re doing, you could imagine their identity has already been destroyed. The detrimental impact that has to those individuals who then have to try and repair their credit or, you know, whatever has happened to them.

Lizzie: That then sounds like a place for policymakers to step in. How would you like to see policymakers work to help companies and society with their cyber risks?

Sarah: It really comes down to a practical help that policymakers can provide into helping SMEs in particular. I will say, over 80% of most cyberattacks are levied at small and medium enterprises, because they don’t have the same level of security. They don’t have the resources. They don’t have the knowledge. They don’t have the capability. And even when something really bad happens, they don’t know how to respond. They don’t have that level of crisis management. So anything that can be done from that perspective—can they get access to shared services, as an example? But also, what can large enterprises do to help the supply chain? Whether we like it or not, we are more and more interconnected. So when you think about companies that are outsourcing, they may have factories in other countries, so they may be relying on people doing various different things. So we’ve got to think about them as well. It’s not just about how we help our local society. It’s also thinking about societal responsibility in general terms.

Lizzie: We started this interview by talking about the landscape of attacks and, really, the landscape of the last 12 months. I wonder if you had to think about this as, you know, a chessboard, who’s winning? Is it the hackers? Or the people trying to defend from attacks?

Sarah: It’s very interesting, I think, when we look at where we are today, one of the stats is, if cybercrime was a country, it would be the third-biggest country in the world in terms of gross domestic product. So, US, China—and cybercrime would be third. It would also be the fastest-growing economy in the world. And I’m just talking there about financially motivated threat actors. So, not even nation-sponsored actors, activists, or all of those things.

Lizzie: This is good, old-fashioned theft.

Sarah: It really is. And the frightening thing is, they are able to make a lot of money. And therefore, crime does kind of pay. And where we’re at at the moment, there’s an asymmetric advantage. What that basically means is whether we are attackers or defenders, we have access to very similar tools and technology. So we’re at a very even playing field at the moment. And when you think about some of the money being made by ransomware operators or some of these organized crime gangs, they’ve got a lot more money to invest in new tools, new technology. We’ve spoken about the potential for generative AI and how that may change them. Microsoft believes that our ability to collaborate and our ability to collaborate at scale and utilizing some of this technology is going to tip that advantage into the realm of defenders. And if I can give you a real-life example of that, and it really reflects into the war in Ukraine. So in the first four months of the Russian invasion, we saw more cyberattacks than the previous eight years. And from Russia’s perspective, they created a brand-new set of destructive malware aimed at Ukraine’s critical infrastructure. They hit really hard, and they hit really fast. What they hadn’t banked on, however, was the level of collaboration and support that they’d had from, not just Western allies and NATO countries, but Big Tech as well. So, kind of, Microsoft stepped in, Google and others stepped in, as well, to help Ukraine. And so it’s a strange world that we are in the realm now of not just protecting individuals, how do we protect companies, but how do we protect nations? It really has been a huge game changer with regards to that level of collaboration. The level of intelligence sharing and our ability to put that intelligence to work has made a massive difference. And this is where we kind of need to continue doing that. We need to kind of think about, you’re not on your own. Actually, the more and more we can share, collaborate, and get all this information out there, helping the SMEs, helping individuals, to all be stronger and be more protected, as a collective, we will become much, much stronger than the adversaries. But it really does hinge on that willingness and desire to collaborate.

Lizzie: Sarah Armstrong-Smith, it has been a pleasure talking to you. And I want to thank you for your expertise and your time.

Sarah: You’re very welcome. Thank you for inviting me.

Ayesha: Sean, some fascinating stuff there from Sarah, including some striking statistics about the sheer scale of the problem. Financially motivated cybercrime is said to be the equivalent of the third-biggest economy in the world. How can companies and society at large build resilience to these threats?

Sean: So we’re talking between US$8 to $9 trillion. I think a lot of us are hearing about resilience. And, you know, how do you define that? And I think that starts with, do you understand, as Sarah explained, the cyber-threat landscape? Do you understand ransomware has basically doubled over the past year? Do you understand the cloud is being exploited in a much more complex way than it has historically? And then the second part is, do you know your critical business functions? And then you have to take that another step further and understand, ok, what’s the technology that is actually supporting those business functions and supporting those services? The next part is, is your incident response and crisis management plan actually something that you rehearse? I’m saying to all of the CEOs out there, you need to be part of that exercise. Those that practice will play much better. The other thing is, on the crisis management, I would say to companies and organizations out there, you have to move at machine speed. What are those tweets that are going to go out immediately? What are some of the responses that you can put out there that’s going to buy you time? And then, the last part of resilience is, actually, do you have immutable backups? Can you actually replace some of those critical business functions and services I was talking about earlier, so you don’t have to pay that ransom? So we’re still at a, what I consider, an inflection point, really understanding this risk and how to deal with it as a whole of society. And that includes the public and private sector.

Lizzie: Cybersecurity and generative AI have come up in several PwC surveys within the last few months—most recently, the CEO Survey, where CEOs said they’re most concerned about GenAI increasing cybersecurity risks, while over half think it will increase the spread of misinformation in their company. Does that reflect the reality that you’re hearing?

Sean: I think it does reflect the reality, but there’s two things here. I think we need to make sure that we push aside the hype of GenAI and understand, actually, what it presents itself in the cyber space. The constant question is, who is the advantage going to, the adversaries or actually the defenders? And I would say right now that it is going to the adversaries. They are going to be able to leverage this technology a lot quicker. They’re going to be able to find vulnerabilities of organizations much quicker. On the defender side, there are, you know, major companies like Microsoft, Google, Amazon, and others that are also going to leverage GenAI, that is actually going to help defend and take advantage of that. But they are going to be the minority. I would say when you talk about most of the small to medium-sized businesses, I think the advantage is going to go to the adversary.

Ayesha: Sean, it looks like there’s been a perceived rush to incorporate GenAI into enterprise systems and processes as so many companies don’t want to get left behind. But is there a cyber risk into rushing this really quickly? What’s the right approach?

Sean: So, what I have been hearing and talking to dozens of companies about is, they are rushing down the autobahn or the super highway to develop use cases for GenAI. And then, what’s happened is, a month or two later, I’m getting calls from the chief risk officer or the chief compliance officer asking me, hey, how do you put guardrails around this? So it’s not just cyber. Cyber is certainly a part of it. But I think, you know, there’s a little bit of the ABCs. Like, you need to be asking yourself, what’s the governance and oversight structure we’re putting around this? How are we making sure it complies with regulations in our own organizational policies? And then companies—and this is where I think they’re struggling—they get the principles, and many of them adopt those principles, and many of the institutions have put out those principles. But then it gets back to understanding the risks. So take it a step further. Do you understand, kind of, the model risk, the risk related to training that model, what datasets are we going to use? Do we understand the user risk, right? Whether it’s intentional or unintentional misuse or manipulation of the AI system?

Lizzie: Sean, if you’re an executive listening to this, what are the opportunities for you if you and your company can get this right?

Sean: No one is perfect, and everyone should expect to be breached at some time during their tenure. However, the companies that actually practice, the companies that actually do the things I was talking about that make a resilient organization, those are the ones that are going to thrive. Those are the ones that are going to keep their customers’ trust. Those are the ones that are going to actually protect their brand. And those are the ones that are going to be able to seize on growth opportunities, unlike some of their competitors.

Lizzie: Well, so let me follow up on that. If you spin forward, looking into this next year, where are you looking when you’re looking at the intersection of GenAI and cybersecurity? What are the things you’re going to be watching?

Sean: I think I’m going to be watching, really, about more misinformation and disinformation that is going to be out there. And we’re already, I think, seeing that happen.

Lizzie: Yeah.

Sean: And we’re going to continue to see that. I think we’re going to see increased activity from some splinter groups that ordinarily would not have maybe had the capability.

Ayesha: Well, Sean, it’s been an absolutely fascinating conversation. Thank you so much for your time and for your insight.

Sean: Thank you so much, Ayesha and Lizzie. I had a great time, and thanks for having me.

Lizzie: Ayesha, that was yet another fascinating conversation, and I’m particularly interested in this idea of just how quickly all of this is moving. The cybersecurity stakes feel incredibly high. And I think the idea that there is this rush to incorporate GenAI and also a little bit of uncertainty about how best to use it, and how best to use it for the defenders, and how best to mitigate what attackers can be doing with it as well.

Ayesha: Quite sober conversations—about the scale of it from a business point of view—but one of the things I thought was very interesting from what Sean said, as well, was that all of this new cyber world and cyberattacks really is going to change and challenge traditional crisis management. You know, it’s not about waiting for a response, because this stuff’s happening in, sort of, real time, breakneck-speed time. I think it’s going to have quite a profound impact in terms of executives and CEOs.

Lizzie: The sort of hunger, I think, that people have for understanding this new language of cybersecurity and how it relates to GenAI is also happening at a breakneck pace.

All right, well, that is it for this episode. Join us next time on Take on Tomorrow, when we discuss the future of global supply chains.

Guest: If you haven’t set yourself up to create a risk-resilient supply chain, it will cost you more. It may shut down your plants. It will cause impacts on your consumers. So it’s a critical part of a company that they be able to do this, to make the right decision in the near term.

Ayesha: Take on Tomorrow is brought to you by PwC’s strategy and business. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. 


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