Palo Alto Networks CEO Nikesh Arora has said that enterprises pouring capital into artificial intelligence (AI) must urgently modernise approximately $1 trillion in aging digital defenses designed for an earlier technological era because the legacy protection systems put in place seven to ten years ago are fundamentally incapable of countering modern digital threats automated operating at machine speed. He emphasised that businesses cannot successfully roll out AI without establishing proper cybersecurity first.
‘The $1 trillion modernisation mandate’
During the company’s post-earnings investor call, Arora highlighted a massive technological shortfall facing global enterprises. Malicious actors are increasingly using automated systems to discover and exploit security gaps faster than ever, leaving older infrastructure vulnerable to instant breaches. Arora told CNBC that global companies carry around $1 trillion in outdated cybersecurity debt that must be overhauled to withstand automated, high-velocity attacks.Arora recalled that nine months ago, the industry was widely written off on assumptions that AI would eliminate its core business. He identified the debut of Anthropic’s Mythos system earlier this year as a decisive industry turning point.“Nine months ago, … we were guilty and convicted of near death because AI was going to eat our lunch, breakfast, and dinner. It seems like that’s not the case. It seems like we’re going to have to have the feast with them,” Arora said.“I’ve been trying for eight years to tell customers they’re not ready, and [Anthropic CEO Dario Amodei] did it in one event, just by launching Mythos,” Arora said on CNBC.Arora noted that enterprise budgets will not shift overnight. “Not everything’s going to happen next quarter. But all I say is this changes the long-term growth rate and duration of cybersecurity, not just for Palo Alto, but as an industry,” Arora added.
