To understand the effect of AI on all of us—business government and regular folks, we need to understand the concept of Industry 4.0:
Industry 4.0 can be defined as the integration of intelligent digital technologies into manufacturing and industrial processes. It encompasses a set of technologies that include industrial IoT networks, AI, Big Data, robotics, and automation.
Put another way, Industry 4.0, which refers to the fourth industrial revolution, is the cyber-physical transformation of manufacturing. The name is inspired by Germany’s Industrie 4.0, a government initiative to promote connected manufacturing and a digital convergence between industry, businesses and other processes.
With the background set; now, how does A.I. fit in?
First, the growth of A.I. According to Next Move Strategy Consulting, the ‘artificial intelligence (A.I.) market is expected to show strong growth in the coming decade. Its value of nearly 100 billion U.S. dollars is expected to grow twentyfold by 2030, up to almost two trillion U.S. dollars.’
Eventually, I will get to the effect of AI on the cybersecurity market, but more context needs to be set. As you know, the same chip has two of A.I. The good and the bad. I would add the ugly, but that would be cheesy. Did it anyway.
There are several ways to proxy this sector. But you have to read to the end. Seriously
Growth of CyberAttacks
The Embroker blog states some sobering cyberattack stats;
Attacks set to double from 2023 to 2025
Attack detection only .05% in the U.S.
Cybercrime up 600% since Covid
cybercrime represents the greatest transfer of economic wealth in history
43% of attacks target small businesses
Only 14% cyberattack ready
Lots more stats. None are very favourable for the cybertargets.
On the positive side,
Generative AI enhances decision-making processes by providing valuable insights, augmenting data analysis, and enabling scenario simulations. Generative AI generates diverse and realistic options and helps decision-makers explore alternative strategies, assess potential outcomes, and make informed choices.
That’s all good, but for investors and interested others, we are more interested in how to stop or markedly mitigate devastating—a relative term—’ the needle and the damage done.’ (Neil Young 1972).
Given the massive growth of Cyber attacks noted, the facts are that security responses will be needed for a long time.
How is A.I. used to tackle cybercrime? In cybersecurity, AI is frequently used to distinguish “good” entities from “bad.” AI-powered security systems offer real-time alerts to potential threats and continuously monitor networks, devices, and applications, removing dangerous human delay and response.
In cyber security, artificial intelligence is beneficial as it improves how security experts analyze, study, and understand cybercrime. It improves companies’ technologies to combat cybercriminals and helps organizations keep customer data safe. Most importantly, it can also serve as a new weapon for cybercriminals who may use this technology to sharpen their techniques and improve their cyberattacks. (KnowledgeHut)
How can investors play the sector? It is readily apparent that exposure to this vast market is almost necessary. And since the cyberattack/hack market is hard to monetarily quantify and not directly investable, tech and software defences are the way to go.
Look at a nifty junior cyber security company, Integrated Cyber (ICS: CSE). The company’s website has a plethora of relevant cybersecurity information regarding the incidence of the cyberattack known as ransomware. Pharma tech company Cell Signaling engaged ICS.
“We believe that cybersecurity awareness must be continuous and digestible. We live in a world where information is consumed and retained in small bites vs. the traditional annual 4-hour mandatory training class,” said Alan Guibord, CEO of Integrated Cyber. “Cell Signaling Technology understands this value and has seen how we efficiently train their teams without extensive downtime – while maximizing the cyber profile of their business.”
Cell Signaling engaged Integrated Cyber to deploy and manage its employee awareness and engagement training service powered by KnowBe4, the world’s largest security awareness training and simulated phishing platform.Suffice it to say I could drone on for pages on the risks/rewards of robust cyber security. All we know is that is a big, underserviced and is only going to get bigger. Being on the side of the good hats is likely a smart move, and a company such as ICS is a compelling strategy. I will leave the conclusion to this time to Cell Signaling CEO Hasan Barakat:
“Our scientific data is our company’s lifeline and vital to advancing our work related to supporting cancer research and the use of antibodies,” said Hasan Barakat, Cell Signaling Technology, CISO. “We engaged Integrated Cyber and have improved our security profile by training and empowering our employees to recognize potential cyber threats and act accordingly. Additionally, the increased cyber intelligence is helping our employees and their families remain cyber safe outside of the office.”