Better execution, not more restriction, Pg11

Key Highlights:

• CERT-In issued an advisory on cyber risks from advanced AI systems, while the RBI is discussing related risks with banks.
• A 2026 Global Threat Report indicated an 89% increase in attacks by AI-enabled actors in 2025.
• The Himachal Co-operative Bank lost Rs 11.5 crore in 2025 due to a malicious application exploiting system vulnerabilities.
• The government is considering classifying AI use cases, potentially leading to access restrictions, which experts advise against.

Detailed Insights:

• Smaller entities like cooperative banks face challenges in cybersecurity due to resource constraints and expensive compliance requirements.
• The government should establish a corpus fund for smaller entities to strengthen cybersecurity, coupled with a trusted vendor list to ensure effective implementation.
• The Draft Digital Competition Bill, which promotes sideloading, could inadvertently increase vulnerabilities by expanding pathways for malicious applications.
• Traditional cybersecurity approaches that treat vulnerabilities as discrete issues are inadequate; a systems-level thinking is crucial for national cybersecurity strategy.
• Restricting access to advanced AI systems is counterproductive, as malicious actors will not be constrained by legal frameworks.
• Focus should be on identifying and fixing exploitable weaknesses in systems, rather than solely focusing on the number of vulnerabilities.

Key Concepts Involved:

• Cybersecurity: Measures taken to protect computer systems and networks from digital attacks.
• Vulnerability: A weakness in a system that can be exploited by a threat actor.
• AI Governance: Frameworks and policies for the responsible development and deployment of artificial intelligence.