Palo Alto CEO: $1 trillion in cybersecurity infrastructure isn't ready for AI

Palo Alto Networks CEO Nikesh Arora said Tuesday that AI is forcing companies to overhaul roughly $1 trillion of aging cybersecurity infrastructure built for a pre-AI world. He stated that systems deployed seven to ten years ago are not equipped to handle AI-driven attacks at machine speed. The company's fiscal fourth-quarter earnings beat estimates and included a strong outlook for the new fiscal year, reflecting this urgency. Arora noted that AI enables attackers to exploit vulnerabilities faster, requiring modernization of defenses not designed for automated threats, and cited Anthropic's Mythos model as a turning point that raised awareness. Arora said Palo Alto has engaged with about 2,000 companies on its Frontier AI Critical Defense Program, introduced in August. He cautioned that spending will not materialize all at once but said AI has expanded the long-term growth rate and duration of the cybersecurity industry.