Nikesh Arora, Palo Alto's chief executive officer (CEO), said Tuesday (local time) that artificial intelligence (AI) is pressuring companies to upgrade nearly $1 trillion worth of ageing cybersecurity infrastructure built for a pre-AI world.
Arora made these remarks to CNBC and said, "Nothing that was deployed seven or 10 years ago is prepared or ready to handle AI at machine speed,” adding, "You have to rethink your cyber architecture.”
Arora expects demand for cybersecurity products to grow as AI allows attackers to find and exploit vulnerabilities faster than ever before, forcing companies to modernise security defences that were not designed to handle automated threats. He said, "You cannot deploy AI successfully if you don’t get cybersecurity right."
That growing demand marks a dramatic reversal in how investors viewed AI’s impact on cybersecurity earlier this year. Palo Alto Networks and other cybersecurity stocks came under pressure amid fears that increasingly capable AI models could disrupt traditional security software. However, as investors recognised that attackers could weaponise the same technology, the market began to see AI as a potential growth driver for the cybersecurity industry.
He said, "Nine months ago, … we were guilty and convicted of near death because AI was going to eat our lunch, breakfast, and dinner," adding, "It seems like that’s not the case. It seems like we’re going to have to have the feast with them.”
Arora identified the launch of Anthropic’s Mythos model earlier this year as a major turning point. The model heightened companies’ concerns about cybersecurity because of its ability to exploit software vulnerabilities with relative ease. Palo Alto’s shares have since climbed 113 per cent from 7 April, after remaining in negative territory for much of 2026 before then.
He further said that he had spent eight years warning customers that they were unprepared, but the launch of Mythos by Anthropic CEO Dario Amodei made the risks clear in a single event.
He went on to say that the company had held conversations with at least 2,000 companies about its Frontier AI Critical Defense Program. The initiative uses advanced AI models to assess customers' security systems, uncover vulnerabilities and help upgrade their cybersecurity infrastructure. The company officially launched the programme in August.
Palo Alto Networks’ earnings report on Tuesday showed that growing demand for cybersecurity is driving stronger business activity, with the company exceeding analysts’ estimates for the fiscal fourth quarter and issuing an upbeat outlook for the new fiscal year. It projected adjusted earnings of $4.16 to $4.19 per share, above Wall Street’s average estimate of $4.11, as businesses increase spending to counter the growing risks posed by advanced AI systems. Revenue from next-generation security products on an annual recurring basis also surpassed expectations, Bloomberg reported.
Commenting on the earnings call, Arora said, “There’s approximately $1 trillion of global cybersecurity debt that must be modernized to defend against automated threats because they operate instantaneously.”
Swati Gandhi is a digital journalist with over four years of experience, specialising in international and geopolitical issues. Her work focuses on foreign policy, global power shifts, and the political and economic forces shaping international relations, with a particular emphasis on how global developments affect India. She approaches journalism with a strong belief in context-driven reporting, aiming to break down complex global events into clear, accessible narratives for a wide readership.<br><br>
Previously, Swati has worked at Business Standard, where she covered a range of beats including national affairs, politics, and business. This diverse newsroom experience helped her build a strong grounding in reporting, while also strengthening her ability to work across both breaking news and in-depth explanatory stories. Covering multiple beats early in her career has helped her be informed about her current work, allowing her to connect domestic developments with wider international trends.<br><br>
At Live Mint, she focuses on international and geopolitical issues through a business and economic lens, examining how global political developments, foreign policy decisions, and power shifts impact markets, industries, and India’s strategic and economic interests.<br><br>
She holds a Bachelor’s degree in English (Honours) from the University of Delhi and a Master’s degree in Journalism and Mass Communication from Guru Gobind Singh Indraprastha University. Her academic training has shaped her emphasis on precision, analytical rigour, and clarity in writing. Her interests include global political economy and the intersection of geopolitics with business.<br><br>
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