Palo Alto Networks CEO Nikesh Arora has warned that artificial intelligence is forcing companies to rethink cybersecurity, saying roughly $1 trillion in global security infrastructure is not ready to defend against fast-moving automated threats.
Why does Palo Alto Networks say current cybersecurity systems are not ready for AI?
Arora said many cybersecurity products deployed seven or 10 years ago were built for a different threat environment and are not prepared for machine-speed attacks.
“Nothing that was deployed seven or 10 years ago is prepared or ready to handle AI at machine speed,” Arora said “You have a technical or cyber architecture.”
He said businesses cannot successfully deploy AI without first putting their cybersecurity systems in order.
Why is AI changing the cybersecurity market?
Arora expects demand for cybersecurity products to grow as AI allows attackers to identify and exploit software vulnerabilities faster than before. This is pushing companies to modernise security systems that were originally designed to handle automated threats differently.
The investors had earlier viewed AI as a possible threat to traditional cybersecurity companies because advanced models could potentially disrupt existing security software. That view has begun to change as businesses recognise that attackers can also use the same technology.
Arora said the market is increasingly seeing AI as a potential growth driver for cybersecurity companies rather than solely as a threat.
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What changed Arora’s view of the AI threat?
Arora identified the launch of Anthropic’s Mythos model earlier this year as a major turning point because of its ability to exploit software vulnerabilities relatively easily.
Palo Alto Networks shares have risen 13 per cent since April 7, according to the report, after remaining in negative territory for much of 2026 before then.
Arora said he had spent eight years warning customers that they were unprepared, but the Anthropic model made the risks clear in a single event.
How is Palo Alto Networks responding to AI-driven cyber risks?
The company has held discussions with at least 2,000 businesses about its Frontier AI Critical Defense Program.
The initiative uses advanced AI models to assess customers’ security systems, identify vulnerabilities and help upgrade their cybersecurity infrastructure. Palo Alto Networks officially launched the programme in August.
The initiative reflects the company’s push to prepare businesses for threats that can operate at far greater speed than conventional cyberattacks.
What does the $1 trillion cybersecurity warning mean?
Arora said there is approximately $1 trillion in global “cybersecurity debt” that needs to be modernised to defend against automated threats.
“There’s approximately $1 trillion of global cybersecurity debt that must be modernized to defend against automated threats because they operate instantaneously,” he said during the company’s earnings call.
The warning points to the scale of older security infrastructure that Arora believes companies will need to upgrade as AI becomes increasingly important to both attackers and defenders.
Is growing AI risk already driving cybersecurity spending?
Palo Alto Networks reported stronger business activity as demand for cybersecurity increased. The company exceeded analysts’ estimates for its fiscal fourth quarter and issued an upbeat outlook for the new fiscal year.
Adjusted earnings were reported at $1.46 to $4.19 per share, compared with a Wall Street average estimate of $4.11 cited in the report.
Revenue from next-generation security products on an annual recurring basis also exceeded expectations, reflecting increased business spending as companies respond to risks posed by advanced AI systems.
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What should companies do now?
Companies should not wait for an AI-driven attack before upgrading their security. Older cybersecurity systems should be reviewed, vulnerabilities fixed and monitoring strengthened so threats can be detected quickly. As attackers begin using AI to move faster, businesses will also need modern security tools and regular testing to keep pace.
About the author — Ayesha Aayat writes on cybercrime, digital safety, and emerging online threats. Her work focuses on public awareness, legal clarity, and technology-driven risks.
