It’s not just government organizations that need to worry about cyber espionage campaigns — the entire business world is also a target.

Multipolarity has been a defining trend in geopolitics in recent years. Rivalries between the world’s great powers continue to test the limits of globalism, resulting in growing disruption to international supply chains and economics. Global political risk has reached its highest level in decades, and even though corporate attention to geopolitics has dropped since peaking in 2022, the impact on global economic stability remains worryingly high.

Adding to this backdrop of geopolitical tension, cyberspace has become the fifth dimension of warfare. Rival nation-states and the organizations loyal to them are increasingly turning to cyber espionage to gain a strategic advantage. However, they’re not only targeting government organizations. They’re also targeting the private sector to disrupt economies and gain unauthorized access to confidential — and highly valuable — information. That means every business is a potential target, regardless of industry.

The real threat of state-sponsored cyber operatives

What makes cyber espionage so concerning is that most campaigns are carried out by state-sponsored attackers for economic, political or even military gain. Unlike rogue individuals and crime syndicates operating off the dark web — usually for financial gain — state-sponsored operatives tend to have access to the financial and human resources needed to launch highly sophisticated attacks against specific targets. And, even if a particular company isn’t likely to be targeted deliberately, that doesn’t mean they’re safe. After all, just like any other dimension of warfare, there’s always a risk of collateral damage.

For businesses, protecting against cyber espionage starts with knowing where the threats are coming from. Long gone are the days when standalone criminals and rogue groups working towards their own agendas are the greatest threat. These days, by far, the greater threat comes from nation-states as well as large enterprises that have capitalized on the opportunities of digital espionage. While the headlines have typically focused on Russia, China and the U.S., the U.K. Government Communications Headquarters (GCHQ) intelligence agency recently estimated that there are now at least 34 nation-states with advanced cyber espionage teams.

Processing the deluge of data

Further complicating matters is rapid technological advancement, particularly in AI, and all the risks and opportunities that come with it. On one hand, AI shows great promise in supporting growth and innovation. On the other, it’s also a source of risk as governments assume the dual responsibilities of fostering innovation while regulating the technology to ensure it remains a force for good.

The combination of AI and increasingly massive amounts of data means business strategy can be decided in hours and days rather than months. And no entity has more data than the governments of the world’s largest states and the organizations aligned with them. Intelligence has taken a very different form, with millions of data points being collected every second. For any entity hoping to make use of this deluge of data, AI has become an absolute necessity. The world of cyber crime and espionage is no different.

AI on the frontlines

The rise of generative AI technologies has propelled AI to the frontlines of cyber warfare. State-sponsored attackers are already using tools like large language models (LLMs) to scale, inform and enhance their attacks, making AI a force multiplier in the broader threat landscape. For example, threat actors can now use tailor-made LLMs to generate malicious code or even inform reconnaissance to gain insights into potential targets.

What makes attacks like these so worrying is their widespread implications. When the world’s largest cloud providers are targeted by state-sponsored cyber espionage campaigns, there’s also a trickle-down effect, potentially involving any business that uses their services. Because of their critical role in software supply chains, state-sponsored attackers with virtually unlimited resources tend to go after the biggest targets.

Striking the right balance of cyber risk

Despite these risks, companies can’t afford to abandon their use of the major cloud vendors. After all, their platforms provide the critical infrastructure that today’s organizations need to scale and innovate. Nonetheless, organizations must proactively protect against these threats by layering on a zero trust architecture, conducting regular security audits and ensuring that all sensitive information is encrypted regardless of where it resides. That means they need to be strategic in choosing their vendors, as well as building security initiatives that align with their specific requirements.

We also need to remember that the biggest players in global software supply chains also have the resources to keep ahead of cyber espionage threats, even if there’s no such thing as being 100% secure. AI has become an undisputable necessity in information security, but it’s also a double-edged sword. Rogue states and cyber criminals are using it to scale their attacks and launch highly convincing social engineering campaigns. However, AI also offers the only way to effectively improve threat detection and response times. Just as you can’t fight in a modern war with sticks and stones, neither can you defend against today’s threats without cutting-edge technology.

Innovation is the key to successful security

In the end, while no business will ever be immune to cyberattacks, it’s important to remember that by far the greatest risk comes with a failure to innovate. As it’s often said, “we’ve always done it this way” are the costliest words in the business world. Even in the case of sophisticated state-sponsored attackers, attempted data breaches are far likelier to be successful when they exploit vulnerabilities in outdated infrastructures and security systems.

To effectively protect against the rising tide of AI-driven cyber espionage, businesses need to continuously monitor, review and update their security systems. Layering on AI has become a necessary part of that process thanks to its ability to augment real-time threat detection and response capabilities. Regardless of one’s opinions about AI, it’s here to stay, and it’s vital for businesses to strike the right balance by strategically incorporating AI as a tool to protect against the next generation of state-sponsored cyber threats.

To learn how IBM X-Force can help you with anything regarding cybersecurity including incident response, threat intelligence, or offensive security services schedule a meeting here.

If you are experiencing cybersecurity issues or an incident, contact X-Force to help: US hotline 1-888-241-9812 | Global hotline (+001) 312-212-8034.