On 25th October this year, US, Japan and South Korea announced the launch of a framework that furthers collaboration with Indian private sector in the digital infrastructure space. The US International Development Finance Corporation(IDFC), the Japan Bank for International Cooperation (JBIC) and Export-import bank of Korea (Korea Eximbank) signed a trilateral agreement with Digital Infrastructure Growth Initiative for India Framework (DiGi Framework) to support projects in the information and communications technology sector such as 5G, Open RAN, submarine cables, optical fiber networks, telecom towers, data centres, smart city, e-commerce, AI, and quantum technology.
On 25th October this year, US, Japan and South Korea announced the launch of a framework that furthers collaboration with Indian private sector in the digital infrastructure space. The US International Development Finance Corporation(IDFC), the Japan Bank for International Cooperation (JBIC) and Export-import bank of Korea (Korea Eximbank) signed a trilateral agreement with Digital Infrastructure Growth Initiative for India Framework (DiGi Framework) to support projects in the information and communications technology sector such as 5G, Open RAN, submarine cables, optical fiber networks, telecom towers, data centres, smart city, e-commerce, AI, and quantum technology.
Digital India has been a remarkable success story in the digitalization of the world’s biggest democracy. Indian government is already being recognized for its digital initiatives with Western nations trying to emulate the success of UPI. During the pandemic, the world got a glimpse of Indian digital prowess when covid vaccine appointments and certificates were available online while most western countries relied on old-school paper trail.
The private sector investment in Indian digital growth story is no less significant. As per the UST global report, Indian companies allocate an average of 24% of their revenue to digital tools and technologies, slightly higher than the US and UK, which invest 20% and 22%, respectively. India’s digital growth including IT sector giants like TCS and Infosys already command global recognition. India-born CEO’s of global tech giants like Satya Nadella of Microsoft and Sundar Pichai at Google had further cemented the perception of digital success even though India lags in certain vital indicators.
While Indian digital story is impressive, the cyber threats in the horizon are no less significant. As per a PWC report entitled “Findings from the 2024 Global Digital Trust Insights”, almost all (99%) organizations in India reported an increase in cyber budgets. More than half stated that risk of cloud-related threats were concerning. It’s not just private sector that is ramping up its spending on cyber security.
A ransomware attack on All India Institute of Medical Sciences (AIIMS) was a notable one when government digital systems were proven to be inadequate in dealing with routine threats. The Government of India has ramped up its budget for cybersecurity, nearly doubling its allocation from Rs 400 crore in 2023-2024 to Rs 759 crore in 2024-2025. A report named “The Invisible Hand” by an NGO estimated that over 79 million cyber attacks targeted India in 2023 ranking it 3rd globally in the instances of cyber threats.
The ranking demonstrates that huge investments in digital infrastructure and digital growth story isn’t being accompanied by a corresponding increase in digital safety. Unless the cyber hygiene infrastructure in India keeps pace with digital growth, the cyber threats will remain a weak link that will undo Indian progress in the digital space. A staggering 936 million internet subscribers (TRAI Data) in India are at risk as novel technology powered by AI become sophisticated in its modus operandi of conducting cyber attacks.
Despite the corresponding challenges, extremely high growth rate of Artificial intelligence(AI) is a good sign for Indian economy. AI tools can be cost-effective for small businesses who can’t afford capital intensive long term investments. For Indian economy which has service sector as a major component, AI softwares can emulate human interactions and enable service delivery at a miniscule price compared to employing dedicated service teams. AI also brings its fair share of challenges as growing automation of vital processes makes it invaluable for organizations and cyber criminals alike. Ransomware attacks are more effective when companies are too dependent on data that they can’t afford to think twice before submitting to the demands of cyber criminals and paying up the money.
Companies often don’t wait for law enforcement agencies to catch up because of fear of loss of trust and credibility if the data loss becomes public. A McKinsey survey proves that their concerns are well-founded when more than 10% of businesses said that they had stopped dealing with a supplier after learning of a data breach. In such a scenario, Deepfake detection tools that reduce possibility of successful cyber attack acquires renewed importance than actions after the breach is successful. KYC’s that incorporate Deepfake detection mechanism and inbuilt AI tools to ensure tamper proof communication are required to keep the ecosystem safe.
How many companies will risk about 10% of their businesses by disclosing a cybersecurity breach than quietly paying up the ransom?
When you are dealing with billion dollar companies, the costs of succumbing to ransom is too miniscule compared to the business at stake. Deepfakes are the easiest method for ransomware attacks because when your boss asks for password, you just give it. You don’t think whether your boss is real or if an AI generated boss is manipulating you with fake voice or video. The damage is done by the time you verify it because control over the company data is already with the rogue.
The skyrocketing investments in cybersecurity by the private sector in recent times suggests that a lot more of the companies have experienced digital breach first-hand than what the official data suggests. Artificial intelligence that emulate human audio and video can do far more damage to trust than regular phishing attacks or malwares. Deepfake forensics need to keep pace with free deepfake softwares that create realistic-looking images, audios and videos.
The annual Digital Defense Report 2024 of Microsoft pointed out that breach in digital security apparatus can be detected using AI. The workload and speed of identification and handling of digital threats, without AI can take upto 277 days. It’s evident that cyber hygiene in India and elsewhere is lagging behind the weak links that AI will exploit.
The digital world is getting unsafe with every advancement in AI. It will require proactive measures by AI Tech companies to ensure that the weakness are identified and addressed at the same pace at which they are discovered and exploited.
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