India faces an evolving cybersecurity challenge as artificial intelligence makes it easier for attackers to develop and deploy sophisticated digital threats, Nicholas Butts, Director of AI and Cybersecurity Policy at Microsoft, said at the NDTV World Summit 2026 in New Delhi on Friday.
Butts said the danger was already present, rather than a distant possibility. He cited Microsoft's threat intelligence findings to highlight how cybercriminals and state linked groups are using AI tools to expand their operations. India ranks seventh globally and third in Asia among countries targeted by cybersecurity threats, he said.
AI Is Changing The Nature Of Cyberattacks
Butts outlined three examples of how the cybersecurity landscape is changing. The first involved Storm 3168, also known as Jadepuffer, a ransomware group based in China that uses AI agents to conduct attacks against organisations worldwide.
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Ransomware is a type of malicious software that locks or encrypts a victim's data, with attackers demanding payment to restore access. The use of AI agents can help automate parts of an attack, potentially allowing criminals to operate more efficiently.
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The second example involved state linked groups using AI agents for espionage. Butts cited Storm 0940, which Microsoft tracks as a Chinese state sponsored actor involved primarily in data theft and spying.
He said Microsoft had published a threat intelligence report on the group on October 22. These cases show how cyberattacks can serve different objectives, from financial gain to collecting sensitive information for strategic purposes.
AI Tools Lower Barriers For Cybercriminals
Butts also highlighted EvilTokens, a threat actor Microsoft began tracking in February. According to him, two individuals used open source and closed source AI models to build an automated criminal infrastructure that sold access to cybercrime tools.
The service reportedly charged $1,500 for access, followed by a monthly subscription of $500 for new customers. Butts said it affected more than 10,000 organisations across 120 countries.
The example illustrates a wider concern for cybersecurity teams: AI tools can give people with limited technical expertise access to capabilities that previously required greater resources and specialist knowledge.
Microsoft Processes Billions Of Security Signals
Butts said Microsoft processes around 165 trillion telemetry signals every day, screens approximately five billion emails and blocks about five million new malware files daily.
These figures highlight the scale of monitoring required to identify emerging threats across digital systems. They also underline the challenge facing organisations as attackers increasingly use automation and AI to improve their methods.
As AI becomes more accessible, cybersecurity is no longer only a contest between attackers and highly trained security specialists. It is also a race between automated offensive tools and the systems designed to detect and stop them. For India, the growing use of digital services makes the ability to identify threats early and respond quickly an increasingly important part of protecting businesses, institutions and critical infrastructure.
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