WASHINGTON (AP) — Recent research from Microsoft highlights a significant uptick in the use of artificial intelligence by nations such as Russia, China, Iran, and North Korea to mislead individuals online and launch cyberattacks against the United States.

In July, Microsoft discovered over 200 cases where foreign adversaries employed AI to generate fraudulent online content. This figure more than doubled from July 2024 and was over tenfold compared to 2023.

The details, released in Microsoft’s annual digital threats report on Thursday, demonstrate how these foreign powers are increasingly leveraging innovative strategies to exploit the internet for espionage and deception.

AI’s potential said to be exploited by US foes

Besides state actors, criminal syndicates and hacking entities have also harnessed AI’s capabilities to enhance cyberattacks, disseminate divisive disinformation, and infiltrate secure systems. For instance, AI can refine poorly crafted phishing emails into polished English and fabricate digital personas of high-ranking government officials.

State-sponsored cyber operations typically aim to extract confidential data, disrupt supply chains, interfere with essential services, or spread false narratives. Conversely, cybercriminals focus on financial gain by pilfering corporate secrets or deploying ransomware to extort victims. These criminal groups are behind most global cyberattacks, sometimes collaborating with nations like Russia.

According to Amy Hogan-Burney, Microsoft’s vice president for customer security and trust, who supervised the report, these adversaries increasingly target government entities, businesses, and vital systems such as hospitals and transportation networks using AI. Meanwhile, many U.S. companies and organizations continue to rely on outdated cyber defenses, despite a surge in digital connectivity among Americans.

Companies, governments, organizations and individuals must take the threat seriously if they are to protect themselves amid escalating digital threats, she said.

“We see this as a pivotal moment where innovation is going so fast,” Hogan-Burney said. “This is the year when you absolutely must invest in your cybersecurity basics,”

US is a popular target

The U.S. is the top target for cyberattacks, with criminals and foreign adversaries targeting companies, governments and organizations in the U.S. more than any other country. Israel and Ukraine were the second and third most popular targets, showing how military conflicts involving those two nations have spilled over into the digital realm.

Russia, China and Iran have denied that they use cyber operations for espionage, disruption and disinformation. China, for instance, says the U.S. is trying to “ smear ” Beijing while conducting its own cyberattacks.

North Korea has pioneered a scheme in which it uses AI personas to create American identities allowing them to apply for remote tech jobs. North Korea’s authoritarian government pockets the salaries, while the hackers use their access to steal secrets or install malware.

It’s the kind of digital threat that will face more American organizations in the years to come as sophisticated AI programs make it easier for bad actors to deceive, according to Nicole Jiang, CEO of Fable, a San Francisco-based security company that uses AI to sniff out fake employees. AI is not only a tool for hackers, but also a critical defense against digital attackers, Jiang said.

“Cyber is a cat-and-mouse game,” she said. “Access, data, information, money: That’s what they’re after.”