PRESENTED BY

Cyber AI Chronicle

By Simon Ganiere · 22nd September 2024

Welcome back!

Project Overwatch is a cutting-edge newsletter at the intersection of cybersecurity, AI, technology, and resilience, designed to navigate the complexities of our rapidly evolving digital landscape. It delivers insightful analysis and actionable intelligence, empowering you to stay ahead in a world where staying informed is not just an option, but a necessity.

Table of Contents

What I learned this week

TL;DR

  • Generative AI models like ChatGPT may dominate headlines, but there's much more to the world of Artificial Intelligence! This article explores a range of generic AI use-cases and the different AI technology. Discover with the help of visualisation - heat map - which AI technology is best to support a use-case. Next week we will deep dive on the implication from a cyber perspective » READ MORE

  • LinkedIn was in the news this week, following a change of the User Agreement they offer by default to use their members data for generative AI training. It obviously created some noise, the UK Information Commissioner’s Office complain about it and the setting was disabled in the UK. This is applicable only if you live outside the European Economic Area, Switzerland or the UK. If you want to opt out here are the instructions.

  • In the AI world, Sam Altman was speaking at T-Mobile’s Capital Market Day. You can find the YouTube video here. In a nutshell: o1 model (see my summary from last week) is described as the first AI system with advanced reasoning. He also outlined five levels of AI development, with o1 at level 2 (reasoners) and suggested level 3 (agents) could follow “relatively quickly”.

  • The world of cyber is still a mixed bag of good news and bad news:
    For the good news, we have the disruption of “Raptor Train” botnet, which was used by Chinese APT Flax Typhoon. Germany shuts down 47 cryptocurrency exchange services used by cybercriminals. Seventeen people got arrested in the takedown of a phishing service with nearly 500,000 victims. AWS launched a first public vulnerability disclosure program…but not yet a public bug bounty.
    On the bad news, well I can add again the details about Raptor Train 🙃 Vulnerabilities are still being disclosed at pace, from Atlassian to Ivanti via VMware.

Mapping the Landscape of AI

In recent months, it seems like everyone's talking about Generative AI. ChatGPT, Claude, DALL-E, and other generative models have captured the public imagination, promising to revolutionize how we create content, write code, and even brainstorm ideas.

The truth is, Artificial Intelligence encompasses a vast array of use-cases and techniques and GenAI is the current buzz word there are many other forms of AI that are equally innovative. What's more, not every AI technique is suited to every use-case. The AI landscape is complex, with different approaches yielding better results for different problems. A technique that excels at natural language processing might fall short when it comes to anomaly detection in cybersecurity.

In this article, we'll take a step back from the GenAI hype to explore the broader world of AI. We'll dive into a range of AI use-cases, from the familiar to the surprising, and examine the various techniques that power these applications. By the end, you'll have a clearer picture of AI's diverse capabilities and a better understanding of how different AI methods align with different real-world challenges.

AI’s Problem-Solving Toolkit: Key Use-Cases

  1. Prediction and Forecasting: In meteorology, AI models process vast amounts of atmospheric data to predict weather patterns with increasing accuracy, helping to save lives in extreme weather events. In finance, AI analyzes market trends, economic indicators, and even social media sentiment to forecast stock prices and economic shifts, enabling more informed investment decisions.

  2. Anomaly Detection: This use-case is critical in identifying unusual patterns that may indicate problems or opportunities. In cybersecurity, AI systems continuously monitor network traffic to detect potential breaches or attacks in real-time - we will cover this in more detail next week. In healthcare, AI analyzes medical images to spot anomalies that might be early indicators of diseases, potentially saving lives through early detection.

  3. Classification: AI excels at categorizing data into predefined classes, a crucial task in many fields. In email systems, AI classifies incoming messages as inbox, spam, or promotional, saving users countless hours. In healthcare, AI assists in diagnosing diseases by classifying symptoms, test results, and medical images, supporting doctors in making more accurate diagnoses.

  4. Optimization: AI is tackling complex optimization problems that were previously unsolvable. In logistics, AI optimizes delivery routes considering multiple factors like traffic, package priorities, and fuel efficiency, leading to significant cost savings and reduced environmental impact. In energy management, AI optimizes power grids to balance supply and demand, integrate renewable sources, and prevent outages.

  5. Natural Language Processing (NLP): NLP is making human-computer interaction more intuitive and breaking down language barriers. Virtual assistants like Siri and Alexa use NLP to understand and respond to voice commands. In global business, NLP powers real-time translation services, facilitating communication in multilingual meetings and expanding market reach.

  6. Image and Video Analysis: AI is giving machines the power of sight, with far-reaching implications. In autonomous vehicles, AI analyzes video feeds to navigate roads, recognize traffic signs, and avoid obstacles. In retail, computer vision systems enable cashier-less stores, where customers can pick up items and leave, with AI tracking their selections and automating billing.

  7. Robotics: AI is the brains behind modern robotics, enabling machines to interact intelligently with their environment. In manufacturing, AI-powered robots adapt to new tasks and work alongside humans safely. In healthcare, robotic surgical assistants, guided by AI, help surgeons perform minimally invasive procedures with greater precision.

  8. Recommendation Systems: These systems are personalizing our digital experiences. Beyond suggesting movies on Netflix or products on Amazon, AI recommender systems are being used in education to suggest personalized learning paths for students, and in healthcare to recommend treatment plans based on patient data and medical research.

  9. Decision Support Systems: AI is augmenting human decision-making in critical fields. In healthcare, AI analyzes patient data, medical literature, and treatment outcomes to suggest diagnosis and treatment options to doctors. In finance, AI-powered systems help portfolio managers make investment decisions by analyzing market trends and risk factors.

  10. Pattern Recognition: AI's ability to recognize patterns goes beyond simple image or voice recognition. In scientific research, AI is helping to identify patterns in vast datasets, leading to discoveries in fields like genomics and drug development. In public safety, pattern recognition is used in predictive policing, identifying crime patterns to allocate resources more effectively.

  11. Process Automation: AI is streamlining operations across industries. In customer service, AI chatbots handle routine inquiries, freeing human agents for more complex issues. In manufacturing, AI-driven systems manage entire production lines, optimizing processes in real-time based on multiple factors like quality metrics and energy usage.

  12. Predictive Maintenance: This use-case is transforming how we maintain equipment and infrastructure. In aviation, AI predicts when aircraft components need maintenance, reducing downtime and improving safety. In urban management, AI analyzes data from IoT sensors to predict when infrastructure like bridges or roads need repair, enabling proactive maintenance.

AI Techniques: The Tools of the Trade

  1. Machine Learning (ML): The cornerstone of modern AI, ML algorithms improve through experience. Unlike traditional programming where rules are explicitly coded, ML algorithms learn patterns from data. For example, spam filters use ML to adapt to new types of spam emails over time, continuously improving their accuracy.

  2. Deep Learning: A subset of ML, deep learning uses neural networks with multiple layers (hence "deep") to learn from vast amounts of data. It's particularly powerful for tasks involving unstructured data like images or text. Deep learning powers image recognition systems that can identify objects in photos with human-level accuracy, and it's the technology behind advanced language models.

  3. Generative AI (LLMs): Large Language Models (LLMs) like GPT-4 or Claude can generate human-like text, code, and even images. They're trained on vast amounts of data and can perform a wide range of tasks, from writing essays to generating programming code. This technology is revolutionizing content creation, coding assistance, and even creative writing.

  4. Non-Generative LLMs: These models focus on understanding and analyzing text without generating new content. They're crucial in applications like sentiment analysis for brand monitoring on social media, or in legal tech for contract analysis and due diligence.

  5. Graph Neural Networks: Specialized in analyzing data with complex relationships, graph neural networks are particularly useful for social network analysis, recommender systems, and even in drug discovery where they can predict interactions between molecules.

  6. Evolutionary Algorithms: Inspired by biological evolution, these algorithms are used to solve complex optimization problems. They're particularly useful in scenarios with vast solution spaces, like designing aerodynamic shapes for vehicles or optimizing complex schedules.

  7. Reinforcement Learning: This technique enables AI agents to learn through interaction with an environment, receiving rewards or penalties for actions. It's crucial in robotics, where robots learn to navigate complex environments, and in game-playing AI like AlphaGo, which defeated world champions in the game of Go.

  8. Statistical Methods: Traditional statistical techniques remain crucial in AI, especially for data analysis and prediction. Methods like regression analysis are used in financial forecasting, while Bayesian methods are applied in spam filtering and recommendation systems.

  9. Expert Systems: These AI systems emulate human expert decision-making in specific domains. They're used in medical diagnosis, where they can suggest potential diagnoses based on symptoms and test results, and in complex system troubleshooting, like diagnosing issues in large industrial equipment.

  10. Computer Vision Techniques: These methods enable machines to extract meaningful information from visual data. Beyond simple image recognition, computer vision is used in augmented reality applications, in medical imaging to assist in diagnosis, and in autonomous vehicles to interpret the vehicle's surroundings.

Beyond the Heat Map: Synthesizing AI's Complexities

To visualize how these techniques apply to various use-cases, we've created a heat map. This visual tool provides a quick reference for understanding which AI techniques are most relevant to different applications.

Heatmap of AI use-cases and AI Techniques

As we've explored the diverse world of AI use-cases and techniques, our heat map provides a visual guide to understanding their interconnections. This mapping not only showcases the versatility of AI but also highlights some crucial insights about the strengths and limitations of various AI approaches.

  1. The Generative AI Paradox: Our heat map reveals an interesting paradox in the world of Large Language Models (LLMs), both generative and non-generative. While these models excel in tasks involving language understanding and generation, they show low relevance for prediction and forecasting use-cases. This aligns with the well-known "hallucination" problem in LLMs, where they can generate plausible-sounding but factually incorrect information. It's a stark reminder that despite their impressive capabilities in natural language processing, LLMs are not suited for all types of AI tasks, particularly those requiring high degrees of factual accuracy and predictive power.

  2. The Strength of Traditional Methods: In contrast, we see that more traditional techniques like Machine Learning and Statistical Methods show high relevance across a wide range of use-cases, including prediction and forecasting. This underscores the continuing importance of these foundational AI techniques. Their strength lies in their ability to learn patterns from historical data and make probabilistic predictions, making them particularly well-suited for tasks that require numerical accuracy and reliable forecasting.

  3. Combining Use-Cases for Complex Problems: The heat map also reveals how complex real-world problems often require a combination of AI use-cases and techniques. Autonomous driving serves as a prime example of this synergy. While primarily relying on Image and Video Analysis to interpret its surroundings, a self-driving car also incorporates Prediction and Forecasting to anticipate the movements of other road users, Decision Support Systems to choose the best driving actions, Anomaly Detection to identify unusual situations, and Pattern Recognition to understand traffic flows. This multi-faceted approach, combining various AI techniques, enables the system to navigate the complex and unpredictable real-world environment of public roads. It underscores that the most advanced AI solutions don't just excel in one area, but rather integrate multiple use-cases to address the multidimensional nature of complex problems.

These insights from the heat map underscore a critical point: there is no one-size-fits-all solution in AI. The effectiveness of an AI technique depends heavily on the specific use-case and the nature of the data involved. As AI continues to evolve, understanding these nuances becomes increasingly important for anyone looking to leverage AI in their field.

For business leaders, this means carefully considering the nature of your problems and data before choosing an AI solution. For researchers and developers, it highlights the importance of continuing to refine and develop a diverse array of AI techniques, each with its own strengths and suitable applications.

As we look to the future, the AI landscape will undoubtedly continue to evolve. New techniques will emerge, and existing ones will be refined. But amidst this rapid progress, one thing remains clear: the key to successful AI implementation lies not just in understanding individual techniques or use-cases, but in recognizing how they fit together in the broader AI ecosystem.

By mapping this landscape, we gain not just knowledge, but the wisdom to apply AI effectively and responsibly across the spectrum of human endeavor.

SPONSORS

Want SOC 2 compliance without the Security Theater?

Tired of SOC 2 Security Theater? 🤔

Oneleet is the all-in-one platform for building a real-world Security Program, getting a Penetration Test, integrating with a 3rd Party Auditor, and providing the Compliance Automation Software.

Worth a full read

Risk to the Nth-Party Degree

Key Takeaway

  • Nth-party risk management is crucial for comprehensive supply chain security.

  • Interconnectedness in supply chains amplifies the impact of breaches across multiple levels.

  • Finance sector's dominance in nth-party relationships highlights its critical role in business operations.

  • Mid-sized organizations often seek partners similar in size for better operational alignment.

  • Higher diversity in supply chains can lead to increased breach risks at various levels.

  • Effective risk management requires understanding and monitoring beyond immediate third-party connections.

  • Larger enterprises tend to have more extended nth-party relationships, increasing complexity.

  • Recurring connections among third parties significantly amplify organizational risk.

  • Supply chain diversity introduces both robustness and fragility in cybersecurity contexts.

  • Proactive risk management is essential for navigating the intricate web of nth-party dependencies.

Cyber Risk and Financial Resilience in the S&P 500 | Kovrr

Key Takeaway

  • Cybersecurity is increasingly critical due to rising reliance on IT systems and interconnected digital landscapes.

  • Financial resilience to cyber attacks varies widely among S&P 500 companies, with some at significant risk.

  • Understanding financial implications of cyber attacks is vital for effective risk management strategies.

  • Cybersecurity insurance is essential for reducing financial risks from potential cyber incidents.

  • Kovrr’s models offer valuable insights into the return on investment for security control upgrades.

  • Cyber attack exposure should be integrated into broader operational risk management strategies.

  • Companies must assess both likely and rare cyber attack scenarios to ensure financial stability.

  • Regulatory requirements for cyber incident disclosure are increasing globally, enhancing transparency.

  • Financial resilience to cyber attacks is crucial for maintaining economic stability across markets.

  • Quantifying cyber risk helps executives make informed decisions on budget allocation and risk transfer.

Wisdom of the week

Mistakes are the growing pains of wisdom.

William George Jordan

Contact

Let me know if you have any feedback or any topics you want me to cover. You can ping me on LinkedIn or on Twitter/X. I’ll do my best to reply promptly!

Thanks! see you next week! Simon

Reply

Avatar

or to participate

Keep Reading