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Cybersecurity at an inflection point

June 2025

Read Time: 5 minutes

The cybersecurity landscape is undergoing a dramatic transformation, fueled by the convergence of rapid AI innovation, tightening regulations, and evolving threat vectors. As digital transformation accelerates, security has become not just a technical challenge but a boardroom priority.

At the RSA Conference 2025 in San Francisco, our Enterprise Technology and Services team explored how global cybersecurity leaders are reimagining defense strategies to address the growing sophistication of attackers and the vulnerabilities introduced by AI and emerging technologies. We’ve noted some of the most compelling insights and takeaways.

Critical factors driving the enhanced focus on cybersecurity include a rise in sophisticated threat actors, growing regulatory pressures, and the increasing complexity of digital environments.

A Growing List of Threat Actors

Cybersecurity teams are facing a growing list of threat actors exploiting gaps in enterprise infrastructure. One major concern is authorization sprawl, where users have redundant or excessive permissions across cloud and SaaS environments. This creates hidden attack paths and hampers an organization's ability to effectively map and monitor access across distributed systems, weakening overall detection and response. Additionally, the rise of Industrial Control System (ICS) ransomware is a growing risk as companies automate their operational technology (OT) environments to reduce human error. In doing so, they often remove manual fallbacks critical for system recovery, creating single points of failure that can be exploited to disrupt essential services. Compounding these challenges is the tactic of forensic artifact erasure, where advanced threat actors deliberately avoid creating or actively erase digital forensic traces, making post-breach analysis and attribution far more difficult.

AI Security: A Dual-Edged Sword

While AI enhances defensive capabilities, it also introduces new vulnerabilities. Tools like WormGPT and AI-powered DDoS engines from hacker groups such as FunkSec highlight the growing use of AI by malicious actors. Alarmingly, only 30% of organizations currently view AI as a supply chain risk, underscoring the need for urgent reassessment.

Regulatory Compliance and SEC Mandates

With the SEC’s cybersecurity disclosure rules (Items 1.05 and 106) now in effect, organizations are under increasing pressure to demonstrate robust cyber risk governance and breach transparency. Compliance has become a fundamental aspect of investor communications and enterprise risk management.

Threats in the Era of Quantum Computing

Quantum computing presents a looming challenge to current encryption protocols. Security leaders are being urged to transition to post-quantum cryptographic methods and improve crypto-agility. The window for proactive preparation is closing rapidly.

Key solutions, frameworks, and trends that emerged include security by design principles, identity-based access models, and the integration of AI-driven tools in cybersecurity operations.

Security by Design

The Cybersecurity and Infrastructure Security Agency (CISA) unveiled its "Secure by Design" initiative, bringing together 68 major tech firms including Microsoft, Google, and IBM to embed security at the product development stage. This may well evolve into a game-changing industry standard.

The Shift to Identity-Based Security

Traditional network segmentation approaches such as VLANs, ACLs, and firewalls are proving inadequate for today’s dynamic environments. The future lies in identity-based micro-segmentation, which takes into account user identity, device attributes, and behavior patterns. Strong authentication mechanisms that validate both user and endpoint identity are critical to implementing an effective zero trust architecture.

Convergence of Network and Endpoint Security

To protect unmanaged devices and privacy-sensitive environments, enterprises are increasingly integrating network and endpoint security. Enterprise browsers are emerging as pivotal tools by offering enhanced visibility and protection, particularly in hybrid work scenarios. These developments align with Secure Access Service Edge (SASE) frameworks and reflect a broader move toward unified security architectures.

GenAI and Agentic AI Reshaping Cybersecurity Operations

Generative AI is moving beyond hype to become a functional asset. Vendors demonstrated how large language models (LLMs) are being embedded into SIEM, SOAR, and threat intelligence platforms to reduce mean time to detect (MTTD) and respond (MTTR), streamline communication, and automate routine tasks. AI-powered assistants are accelerating SOC analyst onboarding and boosting incident response capabilities. Agentic workflows are set to revolutionize cybersecurity by enabling complex problem-solving, iterative learning, and agent collaboration.

Human-Centric Incident Response Gaining Ground

Cyber resilience increasingly depends on how teams perform under pressure, not just the tools at their disposal. This year’s conference emphasized the human side of cybersecurity—from leadership and communication to cross-functional collaboration. Cohesive, well-trained teams are proving to be vital in managing incidents effectively.

Software Supply Chain Security as a Frontline Issue

Organizations are shifting from reactive breach containment to proactive risk mitigation. Frameworks such as SLSA (Supply Chain Levels for Software Artifacts) and Software Bills of Materials (SBOMs) are gaining widespread adoption. AI and ML tools are being used to automate vulnerability scanning and real-time remediation, bolstering the resilience of software supply chains across sectors.

As cybersecurity challenges become more complex and increasingly critical to business continuity, the takeaways from the RSA Conference 2025 reinforce the urgency of adopting a forward-looking, AI-aware, and human-centric approach to cyber defence. Enterprises that invest in resilience today will be best positioned to thrive in an increasingly unpredictable digital world.

Author: Garima Jain - Enterprise Technology & Services Investment Banking, Avendus Capital

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