The Morning Risk Report: AI Brings On a Painful Period for Cyber Defenders By David Smagalla | Dow Jones Risk Journal
Good morning. Risk Journal reports from the RSAC Conference in San Francisco, where former U.S. security officials are warning that hackers will fully integrate artificial intelligence into their methods over the next few years, leaving companies vulnerable while they struggle to master the new technology.
How AI helps: Both nation-states and criminals are exploring how AI enables them to continuously scan corporate defenses for flaws, while vastly increasing the speed and volume of attacks. Where once hackers spent days stealing data after a breach, AI now allows them to map networks and pilfer information in minutes.
Attack mode: "By the time you go there and investigate, chances are the attackers have moved two more stages beyond you. That speed, especially when things are automated, is going to be devastating," said Rob Joyce, a venture partner at investment firm Datatribe, on the sidelines of the cybersecurity conference. Until 2024, he was the cybersecurity director at the National Security Agency.
Insecure tech: It isn't only criminals who exploit these common flaws; nation-states do as well. During her time as director of the U.S. Cybersecurity and Infrastructure Security Agency, Jen Easterly said she saw that rather than "using exotic cyber weapons" even some of the most sophisticated adversaries "were taking advantage of flawed edge devices, insecure routers, switches and firewalls. That's how they were getting into our sensitive critical infrastructure," said Easterly, who is now the chief executive of RSAC.
AI's advantage for hackers: The real concern is that hackers, who can operate quickly without the encumbrances of compliance requirements, budget approvals, risk reviews and corporate politics, will gain an advantage from the use of AI in the short term while companies implement AI-based countermeasures slowly. Compliance
U.S. government's ban on Anthropic looks like punishment, judge says.
A federal judge on Tuesday said the U.S. government appeared to be punishing Anthropic
by banning the artificial-intelligence company-in retribution for bringing into the public view its contracting dispute with the Pentagon.
Background: The hearing is part of a bid by Anthropic to get relief from the Trump administration's ban on government use of the company's AI models. Attorneys for the Silicon Valley company and the U.S. government made arguments before U.S. District Judge Rita F. Lin, who has not yet ruled on the matter but expressed serious doubts about the Trump administration's actions in her opening remarks.
U.S. should pause some Nvidia exports, lawmakers say.
The Trump administration should pause the export
of advanced Nvidia artificial intelligence chips destined for China following the recent Super Micro Computer-related indictment over alleged smuggling, senior lawmakers said.
Sen. Elizabeth Warren (D., Mass.) and Sen. Jim Banks (R., Ind.) on Tuesday publicized a letter urging the U.S. Commerce Department's Bureau of Industry and Security to pause advanced chip exports.
Why now? The lawmakers pointed to last week's federal indictment of three individuals linked to Super Micro, including company co-founder Yih-Shyan "Wally" Liaw, over the alleged export to China of more than $510 million worth of servers containing restricted Nvidia chips.
A New Mexico jury on Tuesday imposed $375 million in civil penalties
against Meta Platforms, which runs Facebook and Instagram, finding that it was liable for failing to protect young people from online dangers, including sexually explicit content, solicitation and human trafficking.
The U.S. Commodity Futures Trading Commission launched a new task force to craft regulation on cryptocurrency, artificial intelligence and prediction markets, Risk Journal's Max Fillion reports .
The U.S. has banned new foreign-made home internet routers
on national security grounds, adding all consumer-grade routers manufactured outside the country to a federal list of equipment deemed too risky for the American market.
Police searched the offices of Swiss bank Edmond de Rothschild
as part of an investigation into a French diplomat who used to work at the bank and was an associate of Jeffrey Epstein.
An attempt by credit evaluator Egan-Jones Ratings to restore its asset-backed and government securities authorization ran into skepticism
at the Securities and Exchange Commission, which on Monday questioned whether the company has the "financial and managerial resources to consistently produce credit ratings with integrity."
Commonwealth Financial Network will pay $5 million
to resolve years-old allegations that it concealed revenue-sharing agreements that resulted in clients overpaying for pricey share classes of mutual funds when cheaper options were available.
CVS Health and Federal Trade Commission staff reached a proposed agreement to resolve insulin litigation in which the agency accused pharmacy-benefit managers of artificially inflating insulin prices . Risk
Global business activity slows as Iran war weighs.
Business activity in the U.S., Europe and parts of Asia slowed this month
as energy prices and uncertainty were driven higher by the war in the Middle East, while a cooling of new orders pointed to longer-lasting harm if the conflict continues or escalates.
Data firm S&P Global said Tuesday that its U.S. composite purchasing managers index fell to an 11-month low of 51.4 in March, compared with 51.9 in February. "The flash PMI survey data for March signal an unwelcome combination of slower growth and rising inflation following the outbreak of war in the Middle East," said Chris Williamson, chief business economist at S&P Global Market Intelligence.
Iran Plays Hardball as Mediators Push for Talks With U.S. Gulf States Edge Toward Joining Fight Against Iran
The Back-Channel Diplomacy Behind Trump's U-Turn on Iran
Amazon 'Disrupted' Again by Drones in Middle East.
The Oil Supply Crunch Is Spreading From the Gulf to the Rest of the World
Why $100 Oil Could Be Here to Stay.
Big banks are playing both sides of the private-credit meltdown.
JPMorgan Chief Executive Jamie Dimon has ordered a full-scale inspection
of the bank's loan books for software company exposure.
The bank restricted credit access for some private-credit funds and created strategies for clients to bet against the sector. Meanwhile, it pushed off a $5 billion debt sale for Qualtrics but accelerated an $8 billion bond sale for Electronic Arts.
U.S. automakers, including Ford and General Motors, are increasingly using China's CATL battery technology
despite U.S. government curbs.
The European Union and Australia agreed to a free-trade deal and security partnership , the latest move by U.S. allies to rethink their economic and military relationships at a time of rapidly growing geopolitical uncertainty.
America's chief financial officers say that artificial intelligence will push some people out of their jobs : primarily workers in routine, clerical and administrative roles. Workers with highly skilled roles, such as architects and engineers, are more likely to keep their jobs, especially if they can use AI to their advantage. Webinars
Dow Jones Risk Journal is hosting two webinars in coming days focused on prominent risks.
On March 26, we will discuss how compliance professionals can manage the relaxation of Russia sanctions as part of efforts to ease pressure on world oil markets. This event will feature Stephanie Broekaart, a partner with Agorax who worked as a trade lawyer at several major companies; and Glenn Kaminsky, managing director with KPMG and a former official with the U.S. Department of Commerce and Department of Homeland Security. You can register here .
Then on March 31 we will host a discussion on debanking and fair access banking laws with Will Jacquet, a partner at Morgan Lewis and former head of enforcement at the Office of the Comptroller of the Currency; and Eric Young, senior managing director, Guidepost Solutions, and a former chief compliance officer. You can register here .
What Else Matters In the past five years there have been 26 runway incidents
in the U.S. that the Federal Aviation Administration considers the most serious type where a collision was narrowly avoided, according to federal data that covers both commercial and private flights.
Senate Republicans offered Tuesday to fund all of the Department of Homeland Security
except for the unit that carries out immigrant arrests and deportations, moving to end a nearly six-week funding standoff that has caused security snarls at airports nationwide.
Human-level artificial intelligence is already here,
at least according to Nvidia CEO Jensen Huang. But it's not exactly what most people would want from the technology.
FedEx is teaming up with last-mile delivery provider OneRail to offer same-day delivery service , on the heels of Amazon.com's recent launch of speedier delivery options.
A May ban on alcohol at Chinese government events and an austerity drive have caused the Chinese wine market to collapse , affecting global winemakers. About Us
Follow us on X at @WSJRisk . Send tips to our reporters Max Fillion at [max.fillion@dowjones.com], Mengqi Sun at [mengqi.sun@wsj.com] and Richard Vanderford at [richard.vanderford@wsj.com].
You can also reach us by replying to any newsletter, or by emailing our editor David Smagalla at [david.smagalla@wsj.com].
This article is a text version of a Wall Street Journal newsletter published earlier today.
(END) Dow Jones Newswires
March 25, 2026 07:15 ET (11:15 GMT)
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