Generative artificial intelligence is significantly affecting business spending on security, but misjudged investments may create a false sense of security that makes companies more vulnerable to threats, a senior executive of Palo Alto Networks has said.
While it is important for organisations to invest in protection, there is not always a direct correlation between the size of these investments and the level of protection gained, Ercan Aydin, regional vice president for the Middle East and Africa, told The National on the sidelines of the Gitex Global technology conference.
"There are various reasons for this, including organisations making investments in a large number of overlapping and often incompatible technologies. In this scenario, an organisation would typically face higher costs just to manage its complex security set-up," he said in an interview.
"Yet, the result would be patchy security, leaving them at risk of a serious security breach. A holistic, integrated approach offers greater security and cost efficiency."
Mr Aydin's warning follows a new study from the California-based cyber security company which showed that 97.6 per cent of chief executives and top-level managers in the UAE plan to increase their spending in artificial intelligence to safeguard their systems.
In the study of 250 respondents last month, they acknowledged a significant increase in cyber threats, with about 63 per cent reporting a higher number of attacks compared to 2023, and 14 per cent saying they experienced the same level of breaches compared to last year.
On the other hand, enterprises in the Emirates appear confident that they can improve their cyber security with AI, with 94 per cent saying they trust the effectiveness of AI tools in detecting or mitigating threats compared to traditional means, the report said.
In addition, concerns over the implications of using AI were highlighted. Half of respondents said they were worried about privacy issues, while 48 per cent were concerned about the potential misuse of AI and 45 per cent were wary about costs.
"AI is a broad term, encompassing a range of technologies including generative AI, machine learning and natural language processing, each of which can be used for good or bad in various ways," Mr Aydin said.
"In this light, it is not surprising that business leaders in the UAE have concerns about the potential implications of AI, because, in fact, everyone is still wrestling with this issue."
AI has long been used by enterprises for activities including cyber security. The birth of generative AI, made popular by OpenAI's ChatGPT last year, accelerated the technology's use.
However, with its rise came new threats. In a 2024 blog, Palo Alto identified six common, yet potentially dangerous, AI-induced cyber attacks: conducting reconnaissance, enhanced social engineering, malicious code development, automated vulnerability exploitation, deepfake attacks and prompt injection.
The first two are acts of gathering information on intended targets and tricking users with highly-polished phishing e-mails. All cases, however, share a common denominator: AI, generative AI in particular, can be used to prevent them, inasmuch as it can cause harm.
"The technology is being widely exploited by cyber criminals, leading to a surge in complex automated attacks. At the same time, cyber security specialists are also using AI to transform and improve security with the aim to always be one step ahead," Mr Aydin said.
Palo Alto's study showed that 90 per cent of senior executives in the UAE had already engaged AI for cyber security, with more than half saying they had made extensive implementations and 38 per cent having made limited deployments.
Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
Dubai Bling season three
Cast: Loujain Adada, Zeina Khoury, Farhana Bodi, Ebraheem Al Samadi, Mona Kattan, and couples Safa & Fahad Siddiqui and DJ Bliss & Danya Mohammed
Rating: 1/5
So what is Spicy Chickenjoy?
Just as McDonald’s has the Big Mac, Jollibee has Spicy Chickenjoy – a piece of fried chicken that’s crispy and spicy on the outside and comes with a side of spaghetti, all covered in tomato sauce and topped with sausage slices and ground beef. It sounds like a recipe that a child would come up with, but perhaps that’s the point – a flavourbomb combination of cheap comfort foods. Chickenjoy is Jollibee’s best-selling product in every country in which it has a presence.
Sholto Byrnes on Myanmar politics
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COMPANY%20PROFILE
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Ziina users can donate to relief efforts in Beirut
Ziina users will be able to use the app to help relief efforts in Beirut, which has been left reeling after an August blast caused an estimated $15 billion in damage and left thousands homeless. Ziina has partnered with the United Nations High Commissioner for Refugees to raise money for the Lebanese capital, co-founder Faisal Toukan says. “As of October 1, the UNHCR has the first certified badge on Ziina and is automatically part of user's top friends' list during this campaign. Users can now donate any amount to the Beirut relief with two clicks. The money raised will go towards rebuilding houses for the families that were impacted by the explosion.”
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Skoda Superb Specs
Engine: 2-litre TSI petrol
Power: 190hp
Torque: 320Nm
Price: From Dh147,000
Available: Now
RESULTS
6.30pm UAE 1000 Guineas Trial Conditions (TB) US$100,000 (Dirt) 1,400m
Winner Final Song, Christophe Soumillon (jockey), Saeed bin Suroor (trainer).
7.05pm Handicap (TB) $135,000 (Turf) 1,000m
Winner Almanaara, Dane O’Neill, Doug Watson.
7.40pm Handicap (TB) $175,000 (D) 1,900m
Winner Grand Argentier, Brett Doyle, Doug Watson.
8.15pm Meydan Challenge Listed Handicap (TB) $175,000 (T) 1,400m
Winner Major Partnership, Patrick Cosgrave, Saeed bin Suroor.
8.50pm Dubai Stakes Group 3 (TB) $200,000 (D) 1,200m
Winner Gladiator King, Mickael Barzalona, Satish Seemar.
9.25pm Dubai Racing Club Classic Listed Handicap (TB) $175,000 (T) 2,410m
Winner Universal Order, Richard Mullen, David Simcock.
The%20specs%20
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