What’s been going on?

  • Since April, a thriving ecosystem of frontier AI models has rapidly emerged, released by companies like Anthropic, Google, X, Alibaba, and OpenAI. 
  • These frontier AI models include Fable 5 and Mythos 5, Grok 4.5, GPT 5.6, Gemini 3.5, and Qwen 3 which are now in use, with differing levels of public availability. 
  • Beyond their efficiency and business benefit, these models usher in the potential for ‘expert hacking at scale’, where software bugs causing security vulnerabilities can be found and exploited by malicious actors almost immediately. 
  • In short, these tools can locate, string and provide rapid and wide-scale exploitation of existing software vulnerabilities. This will compress the identity to exploit timeline from weeks to minutes. 
  • Taken collectively, these tools amplify the speed of cyber-attacks, compress timeframes for defensive measures, and require a re-evaluation of cyber preparedness, governance and plans (e.g. business continuity and cyber incident response plans).
  • The cyber risks created by AI frontier models are no longer hypothetical. There is increasing public access to frontier AI models and concern that, notwithstanding access control restrictions and guardrails, these models will eventually “break-out” or be replicated by those with nefarious purposes. 
  • In the context of these risks, the Australian Signals Directorate, Australian Prudential Regulation Authority and Australian Securities and Investments Commission have all published advisories. 

What does this mean for me? 

  • Importantly, this does not require a ‘knee jerk’ re-prioritisation of cybersecurity measures. Organisations need to act with urgency and focus, but there is no need to panic.
  • Your organisation will need to revisit and strengthen its cyber resilience (something that should be done constantly in any respect as part of good cyber hygiene practice). 
  • Frontier AI models are changing some existing assumptions in cyber defence, particularly in relation to the speed of exploitation of vulnerabilities, requiring organisations to act faster to identify and patch those vulnerabilities in advance. 
  • Frontier AI models have a dual use: models that can find and exploit vulnerabilities can equally find and patch them. We are in a cyber race with our adversaries. 
  • As software vendors identify legacy vulnerabilities, they will release a larger number of patches which will need to be implemented. 

What should I do?

  • It should not take the emergence of frontier AI models to motivate a revisit of your organisation’s current cyber posture. It’s timely for management and boards to undertake a risk-aligned review of cybersecurity resilience and readiness measures, with frontier AI models front of mind. 
  • Regulators expect boards (in line with their duties as directors) to maintain, at a minimum, sufficient understanding and literacy with respect to AI and cyber security to set strategic direction and provide effective challenge and oversight, including being responsible for setting risk appetite and overseeing risk management. 
  • Do not run the wrong race or get distracted by the hype at the expense of good cyber hygiene. At this point in time, most of our adversaries are still attacking us with traditional techniques, including coming through the front door with compromised credentials or social engineering. 

To ensure your organisation is prepared, you should consider: 

1. Strengthening the management of vulnerabilities 

  • consider directing additional resources (including AI tools) to manage the incoming ‘patch wave' which is likely to result from the use of frontier AI models;
  • be aware that existing approaches and timelines for testing and deploying patches are unlikely to be sufficient, as human-speed responses are inadequate against AI-speed attacks; and 
  • consider and plan for legacy platforms critical to business operations.

2. Focusing on good cyber hygiene fundamentals

  • make sure you are running the right race. Most attacks do not turn on the use of AI enabled attack techniques;
  • do not neglect current programs of work, noting traditional weaknesses, including compromised credentials, still prevail; and
  • check that you have got the basics right and that your pace matches the heightened risk. 

3. Assessing the tools, including frontier AI models or AI harnesses which may assist on the defensive side

  • interim cyber successes have been reported from companies using frontier AI defensively; and 
  • AI tools will provide us with powerful defensive tools.  

4. Revisiting the risk allocation with your third-party software vendors 

  • consider recalibrating existing contractual models for the AI-maximised threat landscape, including indemnities, warranties, liability frameworks, information security standards and notification obligations for cyber incidents and data breaches.  

 

5. Implementing a multifaceted ecosystem of cyber defence

  • have an open mind to frontier AI models and cyber solutions, noting we may not have seen the last of the access suspensions, export restrictions, and broader concentration and economic risks.

 

6. Using your organisation’s governance frameworks to test resilience in the face of frontier AI models 

  • review and validate core controls;
  • minimise attack surfaces;
  • patch systems promptly; 
  • implement layered, defence-in-depth architectures that assume breach;
  • review third and fourth-party dependencies;
  • prepare for incident response in any AI world; and 
  • use AI for defensive purposes, including frontier AI models. 

 

 

 

 

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Australia Cyber risk advisory Artificial intelligence Emerging technology Technology, media and entertainment, and telecommunications Data protection and privacy Cameron Whittfield Peter Jones Magdalena Blanch-de Wilt Amelia Frey Annabelle L’Estrange