AI-Driven Cyberattacks Can Inflict Damage On GDP And Supply Chains For World’s Largest Economies
Cyberattacks driven by Artificial Intelligence (AI) are posing unprecedented risks to global economies, supply chains, and trade, according to a forthcoming study from the journal Risk Analysis. The use of AI in cyberattacks allows for enhanced effectiveness, stealthiness, and adaptability, as these attacks can autonomously learn and evolve based on real-time feedback and environmental changes.
The study focused on regions heavily reliant on digital technologies and interconnected supply chains, revealing significant declines in real GDP, trade prices and volumes, and disruptions in trade routes across regions. Economies such as China, the U.S., the U.K., and the E.U. are particularly vulnerable due to their deep integration into global networks.
The potential economic ramifications of AI-driven cyberattacks are vast and multifaceted. The average global cost of a data breach reached $4.24 million in 2021, highlighting the financial impact of such attacks. The World Economic Forum’s Global Risks Report 2022 also identifies cyber threats as among the top risks concerning businesses and economies worldwide.
The study’s findings show that different cyber threat scenarios result in varying degrees of negative impacts on the real GDP of major regions. For low-level cyber threats, the decrease in real GDP is relatively minor, but for high-level threats, countries like the U.S., the U.K., the E.U., and China experience more pronounced reductions in GDP, leading to significant economic disruptions.
In terms of trade, economies heavily reliant on exports, such as China, Japan, and South Korea, experience higher deteriorations in their terms of trade compared to other economies like the U.K., India, and Russia. Major trade partners like China and the U.S. also face disruptions in their direct exchanges during high-level cyber threat scenarios.
The study emphasizes the critical need for global efforts to enhance cyber resilience and mitigate the adverse impacts of AI-driven cyber threats on the global trade ecosystem. Proactive measures such as adaptable production systems, diversified trade partners, and robust cybersecurity infrastructure are essential in combating the challenges posed by these cyber threats.
Incorporating cyber resilience significantly dampens the reported negative consequences, highlighting the critical role of preparedness in combating digital warfare, says researcher Dr. Sherif Elgendy. Collective efforts to bolster cybersecurity infrastructures and establish resilient trade frameworks are crucial in navigating the treacherous landscape of AI-driven cyberattacks.
