To help you understand the trends surrounding AI and other new technologies and what we expect to happen in the future, our highly experienced Kiplinger Letter team will keep you abreast of the latest developments and forecasts. (Get a free issue of The Kiplinger Letter or subscribe.) You'll get all the latest news first by subscribing, but we will publish many (but not all) of the forecasts a few days afterward online. Here’s the latest…
AI security tools can bolster defenses against phishing, deepfakes and other cyberattacks. But there’s a problem that’s getting worse: AI is making companies and individuals more vulnerable to new digital attacks.
“AI models are now being used to perform sophisticated cyberattacks, not just advise on how to carry them out,” says a recent threat report by leading AI company Anthropic. AI chatbots, such as Anthropic’s Claude, can help cybercriminals profile victims, analyze stolen data, steal credit card information and more. One case study showed an attacker targeting at least 17 organizations in health care, emergency services, government and religious institutions for ransomware attacks.
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The AI tool helped automate the attacks, from reconnaissance to extortion demands. Anthropic banned the accounts when they were discovered and is now trying to preemptively detect such criminal activity. But that’s not much solace. “We expect attacks like this to become more common,” the report notes.
Meanwhile, the way a lot of businesses are using AI is increasing the risk. The rapid adoption of AI by businesses raises issues, since AI tools are often put in place with weak security settings, leaving the systems vulnerable to a breach. There’s also “shadow AI,” the tools used by workers that aren’t sanctioned by the company, which creates a hidden security risk. Many firms don’t have adequate policies to stop the practice.
The cost of a data breach has surged to more than $10 million in the U.S., on average, according to IBM’s recent Cost of a Data Breach Report 2025. The cat-and-mouse game is escalating. “While businesses scramble to adopt AI for competitive advantage, cybercriminals are just as rapidly incorporating these technologies into their attack arsenals,” writes Limor Kessem, cyber crisis global lead at IBM.
“Security incidents involving shadow AI accounted for 20% of breaches,” according to the report. Shoddy AI company policies, such as ignoring unsanctioned AI tools being used on company networks, significantly raise the cost of a data breach. Note that regulatory fines in the U.S. for data breaches are higher than in other countries, driving up the cost.
On the bright side, investing in AI for security led organizations to detect breaches much faster and save money, according to IBM. New policies can help mitigate the risk, such as oversight of shadow AI, having a solid data breach response plan and regular security training for workers.
A big focus should be on preventing phishing attacks, one of the top causes of data breaches. The attacks happen when fraudulent emails or other messages are used to trick someone into clicking on a malicious link or downloading a malicious file.
Businesses should also regularly take an inventory of all the software in use and ditch underused tools, which are susceptible to attacks. Other factors that help include encrypting data and using advanced threat monitoring tools.
But even detection tools are under threat. Cybercriminals’ use of AI tools “can adapt to defensive measures, like malware detection systems, in real time,” notes Anthropic.
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
Related Content
- What Is AI? Artificial Intelligence 101
- How AI Can Guide Introverts to Success in Professional Services
- AI in Accounting: The Future Is Here
- The Hidden Toll of Financial Abuse for Older Adults
- AI Is Missing the Wisdom of Older Adults
-
Five Ways to Cash In On the $6,000 'Senior Bonus' DeductionTaxpayers aged 65 and older may be able to benefit from a $6,000 'senior bonus' deduction over the next four tax years. Here are five ways to make it pay.
-
Are AI Search Results Ghosting Your LinkedIn Posts? This Could Be WhyPosts generated by AI don't hold enough authority with AI search engines to significantly boost your visibility (yes, that's ironic!). Here's what you can do instead.
-
Are AI Search Results Ghosting Your LinkedIn Posts? This Could Be Why
Posts generated by AI don't hold enough authority with AI search engines to significantly boost your visibility (yes, that's ironic!). Here's what you can do instead.
-
How Consumers Are Tinkering with Cutting-Edge AIThe Kiplinger Letter Companies launching artificial intelligence tools are jostling for consumer attention. Some products are already building a deep connection with users.
-
After Years of Stagnant Growth, Hope Emerges for EU EconomyThe Kiplinger Letter Can a German fiscal push outweigh French political peril?
-
Small Businesses Are Racing to Use AIThe Kiplinger Letter Spurred on by competitive pressures, small businesses are racing to adopt AI. A recent snapshot shows the technology’s day-to-day uses.
-
Want to Shave 10 Hours Off Your Workweek? A Startup Expert Shows How AI Can HelpArtificial intelligence is overhauling how companies operate, freeing up entrepreneurs and their workers to skip the menial stuff and get down to business.
-
AI Start-ups Are Rolling in CashThe Kiplinger Letter Investors are plowing record sums of money into artificial intelligence start-ups. Even as sales grow swiftly, losses are piling up for AI firms.
-
What is AI Worth to the Economy?The Letter Spending on AI is already boosting GDP, but will the massive outlays being poured into the technology deliver faster economic growth in the long run?
-
Kiplinger Special Report: Business Costs for 2026Economic Forecasts Fresh forecasts for 2026, to help you plan ahead and prepare a budget on a range of business costs, from Kiplinger's Letters team.
