America’s mission-critical infrastructure is under attack.
Last year, cyberattacks against key U.S. infrastructure jumped by 34%. That includes energy pipelines and electric grids.
The simple things we depend on are at risk…
But the good news is that artificial intelligence (AI) is emerging with a new role in securing our nation’s infrastructure.
Many people are touting AI for things like automated chatbots. But AI’s next frontier will be boosting cybersecurity to protect the resources we need to survive.
In fact, the AI in cybersecurity market is on track to increase 4x by 2027, compared to the start of the decade.
And today, I’ll give you a one-click way you can position yourself to profit from it.
Under Attack
In 2021, one of the nation’s most vital energy pipelines came under cyberattack.
The Colonial Pipeline supplies the East Coast with 45% of its fuel.
The attack shut Colonial down for five days.
It disrupted everything from the supply of gasoline to air travel, and the fuel shortages led to emergency declarations in 17 states. To this day, it is the largest known attack against U.S. infrastructure.
And the Colonial Pipeline is not the only proven-vulnerable infrastructure. On at least two separate occasions, hackers gained access to software inside water treatment facilities in Florida and California.
The attackers used the software to alter the mix of chemicals for treating water… creating poisonous water levels.
Thankfully, no injuries were reported. But it shows that vulnerabilities exist in places you least expect.
And as I mentioned above, it’s a growing problem. That’s why it’s a matter of national security.
Of all the ransomware attacks reported to the FBI last year, more than one-third were in the critical infrastructure sector. That’s everything from hospitals to dams.
Another report found that 56% of utility facilities faced a cyberattack that resulted in a loss of data or operational shutdown.
The examples above show how such attacks can disrupt our daily routines or even endanger our health. A lack of resources and technical personnel is a big part of the problem.
AI provides a solution. It can provide continuous monitoring and even respond to a cyberattack.
That means AI can detect and thwart attacks before they can do damage, like what happened with the Colonial Pipeline.
A Matter of National Security
Now, I know what you might be thinking… Cybercriminals could tap AI’s power to make their attacks more lethal, too.
I can’t argue with that. But corporations and governments are delivering an AI boost to cybersecurity systems that can prevent and counter such attacks.
AI’s potential to take cybersecurity to the next level is even leading to a $20 million competition to code AI into cybersecurity software.
Part of that competition will take place at DEFCON, a well-known hacker’s convention.
And the sponsor of that competition? The U.S. government.
Inside Wall Street editor Nomi Prins already knew the government would double down on protecting vulnerable infrastructure. It’s a distortion she’s been tracking in these pages since she joined Rogue Economics in 2021.
And last year, she showed you how cybersecurity is becoming a matter of national security. Here’s how she put it in the April 27, 2022, Inside Wall Street:
The government is trying to be as proactive as possible. It knows that it needs to stay (at least) one step ahead of any potential cyberattacks.
It needs to defend public transportation, communication, power, and military defense systems against potential cybercrime attacks.
It’s a matter of national security.
That’s why cybersecurity is yet another industry that will be transformed by AI. In fact, the market for AI in cybersecurity is projected to top $46 billion in the next four years.
That’s up 340% compared to the start of the decade. You can see that in the chart below…
That means there’s a tremendous opportunity for cybersecurity software companies that adopt AI early.
So for all the excitement around AI’s new applications, the most important development might be safeguarding the mission-critical things we depend on.
You can take advantage of the growth of AI in cybersecurity with the Global X Cybersecurity ETF (BUG). Its holdings include companies that are building AI into their cybersecurity solutions.
Regards,
Clint Brewer
Analyst, Inside Wall Street with Nomi Prins
P.S. As I said above, the government is trying to get a leg up on AI. In our experience, when Washington latches onto a trend, speculating on that trend is usually a great bet.
It’s why Inside Wall Street editor Nomi Prins spends so much time on Capitol Hill – to stay ahead of Washington’s money trail. And today, that trail leads to AI.
That’s why Nomi recently put out an urgent briefing, where she shared details on her favorite AI company today. It’s trading for only $0.26. And a major announcement could send it soaring at any point.
See, the U.S. government missed the AI frenzy. And now, it’s scrambling to catch up… to the tune of a just-announced $826 billion spending spree. To learn more, watch this video presentation from Nomi.