PHL seeks to unlock AI’s potential amid emerging threats

By Ashley Erika O. Jose, Reporter

DIGITALIZATION has become a strategy for many businesses as more companies embraced the trend when the pandemic forced them to accelerate their digital transformation. 

Amid the shift in the digital and business space, artificial intelligence (AI) has emerged as the latest buzzword.

In the Philippines, many companies have shifted their operations to digital, signaling the country’s preparedness to adopt innovative technologies like machine learning technology.

President Ferdinand R. Marcos, Jr. in November said the country is ready to head towards this technological trend with the crafting of the national AI roadmap that is meant to drive innovation while also upskilling the country’s workforce.

At the same time, the country has been hit with cyberattacks, increasing the potential risks that this technological innovation may be used maliciously amid the growing sophistication among cyberattackers. 

According to a report by cybersecurity company Palo Alto Networks, the Philippines has been hit by the highest number of cyberattacks compared with its Southeast Asian peers this year.

Twenty-nine percent of Filipino organizations have reported an increase in cybersecurity-related incidents of 50% or more, with 51% saying that they are at high risk from threats, the report said.

The report has identified cyberattacks affecting businesses in the country including malware (66%), phishing and spear phishing attacks (63%), and password attacks (56%), it added.

Organizations now need to look for more extensive cybersecurity solutions due to the growth in digital transactions, which could expose their corporate network, it said. 

Last year, several government agencies experienced cyberattacks. For instance, the Philippine Health Insurance Corp. was hit by Medusa ransomware where more than 600 gigabytes worth of its members’ data were obtained.

Information and Communications Technology Assistant Secretary Renato A. Paraiso said cyberattacks have become more frequent. 

“On a daily basis, there are constant attempts to infiltrate and breach various systems, not only government systems but even private sectors,” he told BusinessWorld by phone.

For the Department of Information and Communications Technology (DICT), strengthening cybersecurity and upskilling of personnel are crucial in harnessing the potential of any emerging technologies.

However, technology firm Cisco said organizations in the country are unprepared to leverage the power of AI as its study found that only 17% of businesses in the country are prepared to utilize and deploy AI.

UNCHARTED THREATS
This year, the Philippines may face more cybersecurity attacks, prompting calls for the strengthening of infrastructure enterprises through cybersecurity solutions. 

“Cyberattacks are a global phenomenon. It is not isolated within the Philippines. Worse incidents have happened even in established, progressive countries,” Mr. Paraiso said.

Several firms like telecommunications and information communications technology companies have announced the integration or adoption of AI in their operations. Some are integrating AI technology in their contact services operations, cloud platforms, and even financial services platforms. 

“There’s a concern that bad actors and adversaries out there might look to utilize those AI tool sets to create new forms of compromise. Absolutely, there is a potential for adversaries and bad actors to find new, creative and innovative ways of using artificial ways and forms to compromise organizations,” Carl Solder, Cisco chief technology officer for Australia and New Zealand, said.

In the Philippines, the majority of the network remains untrusted, which makes them more prone to attacks, Now Corp. Chairman Mel V. Velarde said, adding that geopolitical tensions may also spark more cyberattacks. 

“Expect more hacking, expect more breaches because we are at the center of a geopolitical crisis. It is not surprising and not possible to deny that we have problems,” he said in a press chat. 

David R. Hardoon, chief executive officer of Aboitiz Data Innovation Pte. Ltd. (ADI), said regardless of whether it’s the Philippines or other countries, “you can assume that cyberattacks are going to increase.”

“With the increase of digitalization, the increase of technology adoption, we have to, unfortunately, but we need to acknowledge that the bad actors are also going to increase the digitization technology,” he said.

AI TO SOLVE AI-DRIVEN THREATS
“In order to protect against [cyberattacks], you also need to start thinking about using AI to fend off those AI-initiated attacks. We all need to use AI to better defend ourselves against the attacks,” Mr. Solder said.

As AI starts to gain momentum and traction, cyberattacks will become more creative to compromise any systems, Mr. Solder said.

“The industry is also looking to utilize these [AI] tool sets to provide better ways and form and to protect against those new forms of initiated attacks,” he said.

To fully unlock the potential of any technology against any threats, the DICT said the focus must be on strengthening networks and education.

“We need to strengthen our cybersecurity posture, constantly upgrade our systems and upscale our personnel to combat these challenges,” Mr. Paraiso said.

For ADI, artificial intelligence and other emerging technology innovations will be a powerful tool in revolutionizing the fight against cyberthreats.

Mr. Hardoon described AI as a mechanism to find patterns as well as irregularities within patterns.

“We should effectively use AI in order to detect [any] irregularities. [It functions as] a kind of verification. We need to use these technologies to making sure defenses and controls of our systems are as high as possible,” Mr. Hardoon said.

To navigate the right formula between challenges and opportunities that AI may bring, the right balance between robust regulatory and ethical framework must be in place, according to advocacy group Digital Pinoys.

“The increasing integration of artificial intelligence has sparked apprehensions regarding its potential misuse, particularly in the context of heightened cyber threats. As AI advances and gains sophistication, concerns grow over the possibility of its exploitation for malicious activities on a grander scale, potentially leading to more extensive cyberattacks,” Ronald B. Gustilo, Digital Pinoys national campaigner, said in a Viber message.

It is important to recognize the transformative impact of AI across diverse domains from healthcare to automation, Mr. Gustilo said.

“The benefits brought by AI, such as improved efficiency and innovative solutions, present opportunities for positive societal impact. To ensure a future where the advantages of AI outweigh potential risks, it becomes imperative to actively address ethical considerations, establish clear regulations, and foster responsible development and deployment practices within the evolving landscape of artificial intelligence,” Mr. Gustilo said.