Palo Alto CEO: Firms must fix $1 trillion security gap before AI pays off

Palo Alto Networks CEO Nikesh Arora says companies investing in AI must first modernize roughly $1 trillion in outdated cybersecurity defenses, as legacy systems cannot stop machine-speed automated attacks. He stressed that successful AI rollout depends on establishing proper security first. During a post-earnings investor call, Arora highlighted that malicious actors now use automated systems to exploit gaps faster than older infrastructure can handle. He told CNBC that global firms carry this massive cybersecurity debt, which requires urgent overhaul to withstand high-velocity threats. Arora noted that nine months ago, the industry was written off over fears AI would eliminate its business, but Anthropic’s Mythos launch proved cybersecurity remains essential. He said enterprise budgets will shift gradually, but this changes the long-term growth rate and duration of cybersecurity industry-wide.