Warfare has evolved to a "sixth domain" where cyber becomes physical. Mass drone swarms act like a distributed software attack, requiring one-to-many defense systems analogous to antivirus software, rather than traditional one-missile-per-target defenses which cannot scale.

A key threshold in AI-driven hacking has been crossed. Models can now autonomously chain multiple, distinct vulnerabilities together to execute complex, multi-step attacks—a capability they lacked just months ago. This significantly increases their potential as offensive cyber weapons.

The conflict in Ukraine exposed the vulnerability of expensive, "exquisite" military platforms (like tanks) to inexpensive technologies (like drones). This has shifted defense priorities toward cheap, mass-producible, "attritable" systems. This fundamental change in product and economics creates a massive opportunity for startups to innovate outside the traditional defense prime model.

Modern global conflict is primarily economic, not kinetic. Nations now engage in strategic warfare through currency debasement, asset seizures, and manipulating capital flows. The objective is to inflict maximum financial damage on adversaries, making economic policy a primary weapon of war.

AT&T's CEO frames cybersecurity not as a technical problem but a geopolitical one. For-profit companies are pitted against nation-state actors who have unlimited resources and are not constrained by financial performance, creating a fundamentally asymmetric conflict.

Recognizing Russia's high tolerance for military casualties, Ukraine has shifted its strategy to asymmetric economic warfare. By systematically using long-range drones to attack Russian oil refineries and tankers, Ukraine aims to inflict financial pain where the human cost of war has failed to be a deterrent, creating what they call "the real sanctions."

The public narrative about AI-driven cyberattacks misses the real threat. According to Method Security's CEO, sophisticated adversaries aren't using off-the-shelf models like Claude. They are developing and deploying their own superior, untraceable AI models, making defense significantly more challenging than is commonly understood.

The motivation for cyberattacks has shifted from individuals seeking recognition (“trophy kills”) to organized groups pursuing financial gain through ransomware and extortion. This professionalization makes the threat landscape more sophisticated and persistent.

Industrial control systems (OT) on factory floors are largely unencrypted and unsecured, a stark contrast to heavily protected IT systems. This makes manufacturing a critical vulnerability; an adversary can defeat a weapon system not on the battlefield, but by compromising the industrial base that produces it.