AI and Cybersecurity: How Businesses in India Can Fight AI-Powered Threats

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  By Gujju Ticks

  28 August, 2025

Introduction

Technology is growing fast, and India is moving towards a fully digital economy. From UPI payments to online shopping and digital banking, our lives depend on the internet. But with this convenience also comes risk. Hackers are using Artificial Intelligence (AI) to launch more powerful cyberattacks.

At the same time, cybersecurity experts are also using AI to defend systems, detect fraud, and stop hackers. This has created a new digital battlefield—AI vs AI.

In this blog, we will understand how AI is used in cyberattacks, how it helps in cybersecurity defense, and why Indian businesses and individuals must pay attention.

1. Why Cybersecurity Matters More in India

India is one of the fastest-growing digital markets in the world. We have millions of UPI transactions every day, crores of people shopping online, and businesses shifting to cloud platforms.

But with this growth, India has also become a major target for hackers. Some key reasons are:

• UPI and digital wallets: India is the world leader in digital payments, which attracts cybercriminals.
• Remote working: After COVID-19, many employees still work from home, making networks more vulnerable.
• Huge data volumes: Businesses collect customer data, which is valuable for hackers.
• Weak security in SMBs: Many small and medium businesses don’t invest in strong cybersecurity.

This is why cybersecurity with AI support is becoming extremely important.

2. AI-Powered Cyber Threats: How Hackers Use AI

Hackers are no longer just using simple viruses. They are using AI to create advanced and smart attacks. Some of the most dangerous AI-powered threats are:

a) Deepfake Scams

AI can create fake videos and voices that look real. For example, a hacker could make a fake video of a CEO asking employees to transfer money.

b) Smarter Phishing Emails

Earlier phishing emails had spelling mistakes and were easy to detect. But with AI, emails look professional and personal. Hackers can even copy official logos and writing style.

c) AI-Driven Ransomware

Ransomware locks your data and demands money. With AI, such attacks spread faster and can even target specific industries like banking or healthcare.

d) Automated Hacking

AI tools can check thousands of websites or apps in minutes to find weak passwords, outdated software, or unprotected servers.

e) AI Botnets

Hackers use AI-powered bots to launch large-scale DDoS (Distributed Denial of Service) attacks, shutting down websites or apps.

These threats are already visible in India, where banking frauds, UPI scams, and fake investment schemes are rising.

3. How AI Protects Against Cyber Threats

Thankfully, AI is not only in the hands of hackers. Cybersecurity experts also use AI to strengthen defense. Some common uses include:

a) Real-Time Threat Detection

AI can scan thousands of transactions and logins instantly. If it notices unusual activity—like a login from a foreign country—it can raise an alert.

b) Predictive Analytics

By studying past attacks, AI can predict possible future threats and help prepare defenses before the attack happens.

c) Zero Trust Security

AI supports the “Zero Trust” model where no user or device is trusted automatically. Even employees must verify their identity with multi-factor authentication.

d) Banking Fraud Detection

Banks like SBI, HDFC, and Paytm already use AI systems to block fake UPI or credit card transactions.

e) Automated Response

If a cyberattack happens, AI can automatically isolate the affected system, block suspicious IP addresses, or stop harmful processes.

4. Cybersecurity Challenges in India

While AI helps in fighting cybercrime, there are still challenges in India:

• High cost: Advanced AI security tools can be expensive for small businesses.
• Lack of experts: India has a shortage of trained cybersecurity professionals.
• Data privacy concerns: AI needs large amounts of data, which must be handled carefully.
• False alarms: Sometimes AI wrongly flags normal activities as threats.

Still, the advantages of AI-powered security are much stronger than the drawbacks.

5. Best Cybersecurity Practices for Indian Users & Businesses

To stay safe in this AI-driven world, companies and individuals in India must follow best practices:

1. Use AI-based security tools – Invest in modern antivirus, firewalls, and monitoring systems that use AI.
2. Employee awareness training – Most cyberattacks begin with human error. Regular training can reduce risks.
3. Multi-Factor Authentication (MFA) – Always enable OTP or biometric login for banking apps and business accounts.
4. Update software regularly – Old versions of apps or operating systems are easy targets for hackers.
5. Secure cloud storage – Use AI-supported cloud security if storing sensitive data online.
6. Follow government advisories – Keep track of updates from CERT-In (Indian Computer Emergency Response Team).
7. Cyber insurance – Many Indian companies now use cyber insurance to reduce financial loss from attacks.

6. Future of AI and Cybersecurity

The battle between hackers and defenders will continue, but some clear trends are emerging:

• More AI in security – AI will become the backbone of cybersecurity in India.
• AI in small businesses – Affordable cloud-based AI tools will help startups secure data.
• Quantum computing – Will make both hacking and security much stronger.
• New laws and regulations – Indian government is expected to bring stricter rules for AI and data security.
• Global cooperation – Countries will work together to share AI security intelligence.

The future belongs to those who adopt AI-powered security faster than hackers.

Real-Life Examples in India

• SBI and HDFC Banks use AI to track unusual banking transactions and prevent fraud.
• Paytm and PhonePe rely on AI to block suspicious UPI payments in real-time.
• NPCI (National Payments Corporation of India) uses AI systems to secure billions of daily transactions.
• Government cyber cells across states are adopting AI tools to track phishing websites and fake investment apps.

These examples show how AI is already protecting Indian users on a daily basis.

Conclusion

Artificial Intelligence has changed both sides of cybersecurity. Hackers are using AI for smarter attacks like deepfakes, ransomware, and phishing. But at the same time, AI is also defending us with real-time detection, fraud prevention, and zero-trust models.

For India, where digital payments and online services are growing at lightning speed, AI-powered cybersecurity is no longer optional—it is essential. Businesses, banks, and individuals must adopt AI-driven security solutions, stay aware of threats, and follow best practices.

The future of cybersecurity will not just be about firewalls and passwords—it will be about AI fighting AI. The question is: who will stay one step ahead?