Generative AI and Cyber Threats: Navigating the 2025 Landscape

07.05.25 12:00 PM - By Richard Greene

Generative AI and Cyber Threats: Navigating the 2025 Landscape

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Artificial Intelligence is no longer just a buzzword. It’s a fundamental part of how modern organisations operate. From intelligent automation to customer service chatbots, AI is transforming industries at a rapid pace. But as with any transformative technology, its benefits come hand-in-hand with new and evolving risks.


Generative AI (GenAI) tools like ChatGPT, DALL-E, and custom large language models have unlocked incredible creative and operational potential. But they’ve also introduced unprecedented cybersecurity concerns. These systems, when misused, can be weaponised by malicious actors in ways that many organisations are still unprepared to handle.


In this blog, we’ll explore the rising threat landscape created by generative AI, unpack how attackers are using these tools, and most importantly what your organisation can do to stay ahead.

 

First, it’s important to understand what exactly is Generative AI?

Generative AI refers to a class of machine learning models capable of producing content such as text, images, code, audio, and video based on prompts or inputs. Tools like ChatGPT, Midjourney, and Codex fall under this category.


These technologies are used in legitimate applications across numerous sectors. However, their power to generate at scale is exactly what makes them dangerous in the hands of cybercriminals.

 

Cybersecurity – A double edged sword.

While GenAI is being integrated into defensive tools to detect anomalies and write secure code, attackers are also adopting it to:

  • Create hyper-realistic phishing emails.
  • Generate malicious code snippets.
  • Manipulate voice and video (deepfakes) .
  • Automate social engineering campaigns.

According to a recent analysis by Europol, GenAI has already contributed to more sophisticated attack techniques, especially in phishing and impersonation scams.


Let’s break down a few of the core threats:


AI-Enhanced Phishing and Social Engineering

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Source: Pixabay

Phishing is already the most common cause of cyber breaches and GenAI has made it significantly harder to detect.


Traditionally, phishing emails were often riddled with spelling errors, poor grammar, or awkward formatting. But now, attackers can use GenAI to craft flawless, convincing emails in seconds. These messages can be context-aware, personalised using data from breached social media accounts or leaked databases, and nearly impossible for the average employee to spot.


Unfortunately, it doesn’t stop with just email. AI-generated voice (vishing) and video (deepfake) content is now being used to impersonate executives or employees to authorise fraudulent transactions or share credentials.


At Powerdata Group, we’ve seen firsthand how these techniques are evolving. It’s also why we emphasise continuous security awareness training that adapts to emerging threats, not just legacy ones.

Code Generation and Malware Development

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Source: Adobe Stock

Tools like Codex and other AI code assistants have the potential to write scripts and applications in seconds. While they’re powerful for developers, they also offer a shortcut for threat actors looking to generate:

  • Polymorphic malware.
  • Credential harvesting scripts.
  • Exploit payloads.
  • Keyloggers and ransomware code.

What’s especially worrying is that these tools can be prompted to bypass ethical guidelines with subtle linguistic tricks, making them useful to attackers with limited technical skill.

This means organisations may soon face an uptick in malware variants and zero-day exploits generated on-demand by AI. These are threats that traditional cybersecurity teams could struggle with patching or responding to in real-time.


Data Leakage Through AI Usage

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Source: Adobe Stock

Another major concern is unintentional data exposure through the use of public GenAI tools.


Employees using tools like ChatGPT to summarise meeting notes, write code, or review documents might unknowingly paste sensitive information such as internal IP, client data, or security configurations into platforms that store and train on those inputs.


In some cases, these tools retain history or feedback data that can be accessed by others through advanced prompts or breaches, resulting in a serious compliance risk.

To mitigate this, Powerdata Group recommends clear organisational policies and governance frameworks around AI usage. These include:

  • Banning the use of public GenAI tools for sensitive content.
  • Creating internal, sandboxed AI environments if needed.
  • And most importantly, Educating staff on responsible AI interactions.

Supply Chain and Third-Party Risk Amplified by AI

Nowadays, Cybersecurity isn’t just about protecting your own environment anymore. It’s about understanding how secure your entire digital supply chain is.

AI-driven threat actors are now using automation to scan for vulnerabilities across third-party services, integrate into exposed APIs, and exploit configuration oversights. These attacks often take advantage of:

  • Shared credentials.
  • Insecure SaaS integrations.
  • Poorly monitored cloud resources. data leakage

Through PDG’s ThreatDefence platform, we’ve helped organisations visualise their risk landscape, including third-party exposures. AI may be making attacks faster, but with the right detection tools and threat context, businesses can still stay ahead.

Defending Against AI-Driven Threats

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AI isn’t going away. If anything, it will only continue to grow in complexity and influence. The question isn’t whether GenAI will be used in cyber threats… as it already is. The real question is: how prepared is your organisation to defend against it?

Here are some questions you could ask yourself to determine your organisations defensive capabilities:

  1. Is your organisation implementing strict data access policies and AI usage protocols?
  2. Is your organisation Invested in advanced threat detection platforms like ThreatDefence, and ensuring 24/7 monitoring?
  3. Is real-time vulnerability management and endpoint security prioritised?
  4. How much importance is placed on employee training and is it done properly by utilising awareness phishing simulations and awareness modules?
  5. How often does your organisation assess the system’s cyber health with red teaming and penetration testing?

 

Generative AI represents a new frontier in both innovation and cybercrime. As threat actors harness its power to launch more deceptive and scalable attacks, businesses must evolve their defences accordingly.


At Powerdata Group, we believe that staying secure isn’t about fear; it’s about foresight. By understanding where the risks lie and building strategies that blend technology, human awareness, and continuous improvement, organisations can thrive in the AI era without compromising on security.

 

If your organisation is exploring how to safely integrate AI or wants to assess its exposure to AI-powered threats, PDG is here to help guide you on that journey.

Richard Greene