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Cyber AI Chronicle

By Simon Ganiere · 2nd March 2025

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

  • AI is evolving beyond simple text prediction—today’s frontier models are learning to reason, analyze, and make decisions in ways that were unimaginable just two years ago. Innovations like Chain-of-Thought prompting, self-reflection, and long memory capabilities are transforming AI from a chatbot into a true problem solver. With autonomous AI agents, multimodal intelligence, and even emotionally adaptive AI on the horizon, the next wave of AI isn’t just about bigger models—it’s about AI that thinks and collaborates. Ready to see what’s coming next » READ MORE

  • Linked to the above but the AI Race is still at full speed:

    • GPT-4.5 has been announced by OpenAI. This model is not a reasoning model. GPT‑4.5 is an example of scaling unsupervised learning by scaling up compute and data, along with architecture and optimization innovations.

    • Anthropic released Claude 3.7 Sonnet and Claude Code, the latter being the first agentic coding tool Anthropic released.

    • Grok 3 was also released earlier in February.

    • If you struggle to keep up…don’t worry you are not the only one 😁

  • I’ve often highlighted the intersection of cybersecurity and geopolitics, and the start of the Trump presidency is proving to be no exception. The Record recently published an exclusive report revealing that Defense Secretary Peter Hegseth ordered U.S. Cyber Command to halt all planning against Russia—a decision that raises significant concerns. This comes amid broader shifts in U.S. policy under the new administration, adding to an already volatile global cyber landscape.

    For cybersecurity professionals, the immediate reaction is alarm: What happens if Russian cyber capabilities, especially its organized crime ecosystem, are left unchecked? Will ransomware groups operating under Kremlin protection feel emboldened? The risks are undeniable.

    Yet, as with all geopolitical maneuvering, there’s a larger game at play—one where we likely don’t see all the cards on the table. What is clear, however, is that the U.S. political climate appears to be embracing an evolved form of the Madman Theory, disrupting the global cybersecurity status quo in a profound way.

    Let me be clear: this isn’t about agreement or disagreement with these decisions. It’s about recognizing their real-world security implications. As professionals, we can’t afford to ignore these developments—we must monitor, assess, and prepare for multiple scenarios. Because in cybersecurity, the worst threats are often the ones we see coming but fail to anticipate.

The Next Leap in AI: From Chatbots to Thinking Machines

If you’ve been following the AI space, you’ve probably noticed a shift. Not just bigger models, but models that actually think—or at least something close to it. We’re moving from AI that just predicts words to AI that reasons through complex problems. The last 24 months have been pivotal in making this happen, and the next 24 will take us even further.

Let’s break it down: what changed, what’s coming, and how this impacts practical AI applications.

From Text Generators to Problem Solvers

A couple of years ago, AI models were impressive, but let’s be real—they were glorified autocomplete systems. They could generate coherent text but lacked depth in logical reasoning, step-by-step problem solving, and long-term planning. If you asked them a math problem or a legal question, you’d often get a confident but incorrect answer.

Then something happened: reasoning capabilities started to emerge.

  • Chain-of-Thought Prompting (CoT)—Simply telling the model to "think step by step" drastically improved its accuracy. Instead of jumping to an answer, the AI now breaks a problem into intermediate steps, much like how humans do complex reasoning.

  • Self-Reflection & Verification—Newer models can now double-check their own answers, revising them when necessary. This significantly reduces the AI's tendency to "hallucinate" or make up facts.

  • Larger Context Windows—Claude 3 now supports a staggering 200,000 tokens, allowing it to read and analyze entire books in one go. This means AI can track complex discussions, review large legal documents, or summarize vast research datasets without losing track of context.

  • GPT-4.5's Enhanced Efficiency—With OpenAI's latest release, AI is now faster, more cost-effective, and even better at multimodal reasoning, making it more practical for business and research applications.

The impact? AI is no longer just answering questions—it’s thinking through them.

The Evolution of Frontier AI Models

Over the last two years, we’ve seen multiple AI models push the boundaries of what’s possible. Here’s a quick snapshot of where they stand:

Model

Strengths

Weaknesses

GPT-4.5 (OpenAI)

Faster, more efficient, better multimodal capabilities

Closed-source, expensive

Claude 3.7 Sonnet (Anthropic)

Hybrid reasoning with quick and extended thinking modes; excels in coding and complex problem-solving

May overthink simple tasks

Gemini (Google DeepMind)

Multimodal (text, image, audio), integrates with Google tools

Still new, not widely benchmarked

LLaMA 3.3 (Meta)

Open-source, customizable, supports 128,000-token context window, excels in coding and reasoning

High operational costs for larger models

DeepSeek-R1

Open-source competitor for reasoning

Emerging, needs more real-world testing

OpenAI is reportedly working on GPT-5, which aims to merge its language and reasoning models into a unified system that dynamically switches between “quick answer” and “deep thinking” modes.

This is a big deal. Imagine an AI that knows when to take shortcuts versus when to fully analyze a problem. That’s the next frontier.

What This Means for Practical AI Applications

These improvements aren’t just cool technical achievements—they’re game-changers for real-world use cases:

  • Enterprise AI Assistants—Instead of just regurgitating info, AI will actively analyze business reports, predict trends, and recommend strategies.

  • Autonomous AI Agents—We’re moving towards goal-driven AI that can plan and execute multi-step workflows. Think: “Plan my company’s cybersecurity roadmap” and the AI drafts an entire strategic plan.

  • AI in Research & Science—Longer context memory + better reasoning means AI can assist scientists by analyzing thousands of research papers to generate novel insights.

  • AI-Powered Legal & Medical Analysis—These models can already summarize and cross-reference legal documents. Soon, they’ll be trusted advisors in legal and medical decisions.

What’s Next? The AI Roadmap for the Next 24 Months

  • Unified AI Models—Merging language, reasoning, and multimodal capabilities into a single system (e.g., GPT-5, future Claude & Gemini models).

  • Autonomous AI Agents—AI that can take initiative, execute tasks, and work with APIs/tools dynamically (AutoGPT-style, but built-in natively).

  • Quantum AI & Enhanced Compute—New architectures that push beyond classical computing limits, especially for problem-solving domains like physics, logistics, and finance.

  • Emotionally Intelligent AI—Future models will adapt responses based on tone, sentiment, and user preferences—making them feel more like genuine collaborators.

Practical Takeaways: How You Can Prepare for This AI Shift

  • Start experimenting now—If you’re in cybersecurity, business intelligence, or research, test AI’s reasoning abilities today (GPT-4.5, Claude 3.7, etc.) to understand its limitations and strengths.

  • Think in workflows, not just queries—Instead of asking “What’s the best cybersecurity strategy?”, ask AI to map out an entire implementation plan with milestones and dependencies.

  • Prepare for AI augmentation, not replacement—The most successful professionals will be those who collaborate with AI, leveraging its strengths while applying human oversight.

  • Look at open-source alternatives—Meta’s LLaMA 3.3 and DeepSeek-R1 show that you don’t need to rely on proprietary AI—custom AI assistants are within reach.

Final Thought: Are We Entering the Era of AI That Truly Thinks?

While we’re not at AGI (Artificial General Intelligence) yet, the progress in reasoning, tool use, and self-reflection is undeniable. The AI of today can reason through complex problems in ways that were unimaginable just two years ago.

The next step? AI systems that don’t just assist us—but actively collaborate with us to solve some of the hardest challenges across every industry.

This is not just evolution—it’s a revolution. And we’re just getting started.

What’s Your Take?

How are you integrating AI into your workflow? Have you noticed improvements in reasoning capabilities? Drop a comment or reply—I’d love to hear how AI is transforming your field.

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How to Hack AI Agents and Applications

Key Takeaways

  • AI application security involves shared responsibilities among model providers, developers, and users.

  • Understanding security roles helps stakeholders prioritize vulnerability mitigation and focus efforts.

  • Developers must proactively defend against prompt injection to secure AI applications.

  • Some AI vulnerabilities are inherent, requiring ongoing mitigation rather than complete fixes.

  • AI hacking requires a multi-layered approach, combining traditional and AI-specific methodologies.

  • Continual testing and monitoring are vital for effective AI security and safety.

  • Invisible unicode tags present creative opportunities for exploiting AI vulnerabilities.

  • Community engagement enhances learning and skill-building in AI security.

  • AI safety challenges can provide avenues for addressing inherent AI vulnerabilities.

  • AI-specific bug bounty programs may offer unique opportunities for security researchers.

  • AI hacking involves identifying potential vulnerabilities in data sources and sinks.

  • Prompt injection can lead to both traditional and AI-specific security issues.

  • Exploring markdown-to-HTML conversion vulnerabilities can uncover untapped security risks.

  • Monitoring technological advancements is crucial due to the rapid evolution of AI applications.

  • Regular updates and engagement with AI security findings can enhance knowledge and preparedness

Wiz: 2025 State of Code Security Report

Key Takeaways

  • GitHub's dominance and public repo prevalence make it a prime target for attackers.

  • Secrets in code repositories are common, creating significant security vulnerabilities.

  • Cloud keys in repositories pose high risks for unauthorized cloud access.

  • Insecure CI/CD defaults expose organizations to potential security breaches.

  • Integrated security tools across SDLC can mitigate dependency-related risks effectively.

  • GitHub Actions' unrestricted use increases security risks in repositories.

  • GitHub Apps' permission scopes require careful management to prevent vulnerabilities.

  • Self-hosted runners increase vulnerability risks due to excess software packages.

  • Scripting languages' dominance necessitates tailored security tools for repositories.

  • Cloud-native approaches highlight the importance of integrating code and cloud security.

Wisdom of the week

It's not the strongest or the most intelligent who will survive but those who can best manage change.

Charles Darwin

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

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