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Cyber red teams ‘deeply sceptical of AI’, government research finds – PublicTechnology

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A study from the Department for Science, Innovation and Technology has found that security professionals focused on attack simulations are, for various reasons, taking a circumspect approach to new tools

Cyber red teams that emulate the methods of attackers are “deeply sceptical” of the potential impact of artificial intelligence in improving organisations’ cyber defences, government-commissioned research has found.

In December of last year, the Department for Science, Innovation and Technology retained cyber consultancy Prism Infosec to undertake a research exercise intended to explore “how the commercial offensive cyber sector is integrating emerging technologies into their commercial offerings and what the implications are of this integration”.

The study found that the most high-profile of all such technologies is anticipated to have only limited impact on the ability of  red teams – which exist to replicate and simulate attackers’ methods – to probe organisations’ security set-ups.

“Overwhelmingly, our interviews demonstrated the sector remains deeply sceptical of the promises of AI, considering many of its capabilities overstated and overused in products, creating a confused environment as to its true potential and capabilities,” says the newly published research report. “It was perceived that the most common use by threat actors for AI at this time was to deliver more sophisticated social engineering attacks. Aside from the ethical issues of such use, interviewees highlighted risks of data privacy, large costs, and the security of public models as reasons for hampering widescale adoption of the technology in their current offerings.”

However, red teams also reported expectations that AI could, in due course, become a tool in their arsenal. But, in the meantime, offensive cyber ops will rely on professional expertise, rather than automation.

“There was optimism that, in time, these factors would be addressed by more accessible models which can be hosted and tuned privately by cybersecurity firms and then used for a variety of commercial offerings from attack surface monitoring through to vulnerability research and prioritisation. Until the technology reaches this level of maturity however, the red team element of the sector will continue to focus on the manual specialised human efforts for the delivery of commercial offensive cyber services.”

The study also reports that other “surprising results [included] the lack of discussion around technologies such as blockchain or cryptocurrencies.”

Respondents have, instead, found that “adoption and migration into cloud-based architecture has had a larger impact to services being offered by the commercial red teams”.

The report adds: “It has provided changes to traditional infrastructure, enforcing development of new tooling and practices as the sector has adapted to how client organisations have migrated into the cloud following the global coronavirus epidemic Covid-19, advancements in detection and response capabilities, changes in real-world threat actor behaviours.”


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Offensive cyber professionals also noted that their sector has not kept pace with threats that might face organisation’s working with non-Windows computing environments. This has also been a factor in stymieing the use of AI, according to survey participants.

“It was felt that investment into developing offensive cyber tools and capabilities for MacOS, Linux, Unix, Android, iOS, etc. had lagged significantly behind Microsoft Windows estates,” the research says. “[This was], in part, due to the prevalence of that operating system in wider society. As a result, the lack of published research and tools into these was seen as having a hampering effect for using technologies like AI to be used to help develop new capabilities.”

The study concluded with a finding that red teams feel that – following a tip in the scales towards the work of their colleagues in blue teams, focused on cyberdefence – the IT security space is currently fairly “balanced”. The increased focus on defensive posture has led to a greater degree of circumspection among cyber professionals – which, in turn, is also presenting a barrier to the use of new and innovative tech.

“This perceived increased speed of defensive adaptation was ultimately leading to a more cautious approach to knowledge sharing among offensive security practitioners so as to avoid techniques being burned prematurely and inhibiting operations,” the report says. “Analysis of this topic from the interviews revealed that the effective capability bar for offensive security professionals was rising requiring deeper coding knowledge, automation expertise, and adaptability. Traditional offensive techniques were becoming less effective, which was forcing red teams to find short-term gaps in defences rather than relying on old exploits.”

It adds: “Interviewees expressed the conclusion that offensive cyber operators were needing to constantly evolve as security solutions are becoming more sophisticated and harder to bypass. This means knowledge of innovative tools and techniques may become more restricted, and only become public once they have been effectively neutralised by defences.”

The civil service operates its own Government Security Red Team – also known as OPEN WATER – which tests the defences of departments by mimicking the work of cyberattackers. In late 2022, PublicTechnology exclusively reported on the team leading a campaign of hostile digital and in-person reconnaissance destined to identify vulnerabilities.

Numerous agencies across government – including the Ministry of Defence and the Government Digital Service – have also hired the services of external cyber firms to perform attack simulations or other red-team exercises.



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StockGro launches AI stock research engine for retail investors

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By Vriti Gothi

Today

  • AI
  • Cross Border Payments
  • Digital Lending

Stockgro

StockGro, has launched of Stoxo, an AI-powered stock-market research engine designed exclusively for retail investors to bridge the gap between sophisticated market intelligence and everyday investors.

Stoxo harnesses advanced artificial intelligence to transform the way retail participants access, interpret, and act on market information. With its ability to analyse real-time trends, compare stocks across multiple parameters, and deliver actionable insights in an intuitive format, the platform offers retail investors a level of research capability once reserved for institutional players. Developed with an emphasis on accessibility and user-friendly design, Stoxo ensures that complex financial data is presented with clarity, empowering users to make confident, informed investment decisions.

The introduction of Stoxo positions StockGro at the forefront of India’s rapidly evolving investment ecosystem. The platform’s AI-driven architecture is built for scalability, enabling it to adapt seamlessly to shifting market conditions while maintaining the speed and precision required in modern trading environments. For customers, the impact is immediate greater transparency, enhanced decision-making power, and the ability to participate in the markets with a degree of insight previously out of reach for many retail investors.

Beyond individual benefit, Stoxo represents a step forward for the broader financial sector by fostering inclusivity and boosting retail participation. By providing institutional-grade research capabilities in a digital-first, user-friendly environment, StockGro is advancing financial literacy and enabling more Indians to take an active role in wealth creation.

With the launch of Stoxo, StockGro continues to redefine the boundaries of FinTech innovation, merging advanced technology with a deep understanding of investor needs to shape a more informed, empowered, and inclusive investing future for India.

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Did Bill Gates Predict GPT-5’s Disappointment Before Launch?

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There had been a lot of hype and anticipation building around GPT-5 prior to its recent launch. OpenAI touted the tool as the smartest AI model while comparing it to an entire team of PhD-level experts. GPT-5 ships with a plethora of next-gen features across a wide range of categories, including coding, writing, and medicine.

The ChatGPT maker’s CEO, Sam Altman, previously claimed that something “smarter than the smartest person you know” will soon be running on a device in your pocket, potentially referring to GPT-5. However, the AI firm has received backlash from users following the model’s launch and its abrupt decision to deprecate the model’s predecessors.





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Better Artificial Intelligence Stock: ASML vs. AMD

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ASML and AMD are pivotal players in the booming AI market, helping both to see strong sales so far this year.

Artificial intelligence (AI) remains a hot area to invest in, as seen in Nvidia‘s share price, which is up over 30% this year through Aug. 6. Two AI businesses to consider are ASML Holding (ASML 1.33%) and Advanced Micro Devices (AMD 0.17%), since they provide key hardware to the industry.

The former makes cutting-edge lithography machines, which are necessary for producing the advanced microchips that power AI systems. AMD, one of Nvidia’s top competitors, sells AI chips to cloud computing companies such as Microsoft.

ASML and AMD are both strong businesses. But determining which is a better AI investment isn’t simple. So let’s evaluate them in more detail.

Image source: Getty Images.

A look into ASML

ASML’s lithography equipment is essential for manufacturing AI microchips because the technology demands immense computing power. This necessitates shrinking chip components to minuscule dimensions. For instance, a microchip the size of your fingernail contains billions of transistors. ASML’s machines support this.

Although the Dutch company plays an important role in AI, its stock has struggled in 2025, remaining essentially flat through Aug. 6. Part of this is because management anticipates economic uncertainty ahead as a result of factors such as President Donald Trump’s aggressive tariff policies.

Even so, ASML expects 2025 sales to rise 15% over 2024’s 28.3 billion euros ($33 billion). This is significant since 2024’s revenue represents only a 2.6% year-over-year increase. And so far this year, the company is doing well.

Through two quarters, revenue stood at $18 billion, up from the prior year’s $13.4 billion. Operating income rose to $5.8 billion from 2024’s $3.7 billion. This robust growth resulted in net income of $5.4 billion, a strong increase over the previous year’s $3.3 billion.

The excellent first-half results were tempered by a third-quarter revenue forecast between $8.6 billion and $9.2 billion. This outlook, when compared to the prior year’s sales of $8.9 billion, suggests the current trend of strong year-over-year growth may be slowing down, which contributed to ASML’s tepid stock performance.

How AMD is faring

Like rival Nvidia, AMD stock is having a stellar year. Shares are up 35% in 2025 through Aug. 6. This performance is understandable following the company’s second-quarter earnings results. The quarter’s revenue reached a record $7.7 billion, a 32% year-over-year increase.

CEO Lisa Su said, “We are seeing robust demand across our computing and AI product portfolio and are well positioned to deliver significant growth in the second half of the year.” In that second half, AMD expects revenue of $8.7 billion, a strong increase over the previous year’s $6.8 billion.

Despite the sales growth, AMD exited the second quarter with an operating loss of $134 million compared to operating income of $269 million in the previous year. The substantial drop was due to new U.S. government restrictions introduced earlier this year on the sale of AI chips to China. As a result, AMD could not sell chips it had intended for Chinese customers, forcing the company to write off that inventory by $800 million.

Yet this makes its second-quarter sales growth all the more impressive. In the quarter, net income was $872 million, up 229% year over year. Consequently, diluted earnings per share soared 238% to $0.54 in a boon to shareholders.

AMD is working to get government approval to sell AI chips to China again. When that OK is obtained, the company is in a position to deliver more outsize sales growth.

Deciding between ASML and AMD

AMD’s outstanding performance, its anticipated third-quarter revenue growth, and an eventual return of sales to China point to it being the superior AI stock versus ASML.

However, an important consideration is share price valuation. The price-to-earnings ratio (P/E) tells you how much investors are willing to pay for a dollar’s worth of earnings based on the trailing 12 months.

ASML PE Ratio Chart

Data by YCharts.

The top chart shows ASML’s P/E ratio has declined over the past year, indicating its stock’s valuation has improved. Compared to AMD’s recently rising earnings multiple, as seen in the bottom chart, ASML shares look like a bargain.

ASML’s short-term sales may slow due to the current macroeconomic uncertainty, but over the long run, it’s likely to benefit from the rise of AI. The company sees the technology as a significant chance for growth in semiconductors, similar to previous opportunities like PCs, the internet, and smartphones.

Industry forecasts support ASML’s perspective. The AI sector is projected to grow from $244 billion in 2025 to $1 trillion by 2031. While this market growth is a tailwind for both companies, ASML’s attractive valuation makes it look like the more compelling AI stock to buy right now.

Robert Izquierdo has positions in ASML, Advanced Micro Devices, Microsoft, and Nvidia. The Motley Fool has positions in and recommends ASML, Advanced Micro Devices, Microsoft, and Nvidia. The Motley Fool recommends the following options: long January 2026 $395 calls on Microsoft and short January 2026 $405 calls on Microsoft. The Motley Fool has a disclosure policy.



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