LIVE MARKETS-AI vs. security: Cyberattacks surge, losses hit $300 billion

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AI VS. SECURITY: CYBERATTACKS SURGE, LOSSES HIT $300 BILLION

Cyberattacks are costing the U.S. economy dearly, with losses hitting $300 billion in 2025, about 1% of GDP, as hackers leverage advanced algorithms and AI to breach digital defenses, according to Goldman Sachs.

The brokerage warns in a note that AI models are lowering barriers for cybercriminals, enabling faster, more complex attacks and challenging companies' digital defenses.

"The rapidly progressing ability of AI models to identify and exploit vulnerabilities in the digital infrastructure that underpins the economy raises new concerns about the future of cyber risk," says Jessica Rindels, U.S. economics analyst at Goldman Sachs.

The report highlights recent high-profile attacks on companies, including SolarWinds, Microsoft Exchange Server MSFT.O, Colonial Pipeline, Caesars Entertainment CZR.O, MGM Resorts MGM.N, Change Healthcare, and Allianz Life Insurance, with the most severe incidents costing targeted "victim" companies up to $1 billion.

While monetary losses reported to the FBI averaged $20,000 per attack in 2025, rising to $40,000 for AI-driven incidents, Goldman Sachs calculates the real economic impact as much higher once lost productivity, regulatory fines, downstream effects, and surging cybersecurity spending are included.

According to the brokerage, over 1 million cyber incidents were reported to the FBI’s Internet Crime Complaint Center (IC3) in 2025. However, this probably understates the prevalence because cyberattacks frequently go unnoticed and because there is little incentive for firms to report attacks.

Goldman Sachs notes that AI is also being deployed to strengthen cyber defenses, but studies suggest attackers are benefiting more than defenders for now, raising the stakes for businesses and policymakers across the economy.

(Akriti Shah)

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