A Pivotal Moment for National Security

As the digital landscape undergoes profound shifts, the recently released National Cyber Strategy provides the essential foundation for enduring American leadership. By prioritizing the disruption of hostile actors, future-proofing networks, accelerating quantum readiness, and securing the AI frontier, the strategy provides the strategic clarity necessary to protect our digital way of life from sophisticated adversaries. Palo Alto Networks commends National Cyber Director Sean Cairncross for his leadership and looks forward to working with the administration to operationalize this strategy.

Each pillar of the strategy galvanizes meaningful action to advance our collective defense:

Shape Adversary Behavior (Pillar 1)

This signals a decisive shift toward the proactive disruption of malicious actors. The Trump Administration has made clear that the U.S. Government should impose real costs on adversaries to change their behavior. While the private sector is already executing discrete disruptions against malicious actors, coordination has historically been fragmented. The strategy identifies that increased collaboration with private sector entities, who possess unique insight into adversary behavior, can in turn enable more impactful deterrence.

Promote Common Sense Regulation (Pillar 2)

The strategy appropriately recognizes that complexity is the enemy of security. A focus on measurable improvements in cyber outcomes (versus check-the-box compliance exercises) collectively makes us all safer. While much attention is rightfully paid toward harmonizing incident reporting requirements, which Palo Alto Networks wholeheartedly supports, let’s not stop there. The federal government can lead by example by consolidating and streamlining federal government software compliance certifications. For example, there should be logical reciprocity between FedRAMP High and DoW IL-5 certifications.

Modernize and Secure Federal Government Networks (Pillar 3)

In addition to the necessary attention on AI-powered cyber defense, cloud security and zero trust network architecture, Palo Alto Networks applauds the discrete focus on quantum-safe security ahead of “Q-Day,” the point where quantum computing capabilities will compromise legacy public key encryption that has underpinned cybersecurity for decades. As Federal CISO Mike Duffy recently stated, "Modernization without considering PQC readiness or cryptographic agility is really creating technical debt in the future, something that we don’t want to see ever.”

To address this challenge, Palo Alto Networks provides a structured quantum-safe framework organized into four stages:

• Continuous Discovery – Automating ecosystem ingestion to identify cryptographic dependencies.
• Risk Assessment & Prioritization – Evaluating vulnerabilities to establish a data-driven remediation roadmap.
• Comprehensive Remediation – Executing the transition to post-quantum algorithms across the architecture.
• Governance & Crypto-Hygiene – Maintaining long-term visibility and management.

The bottom line is that 2035 is too late. Quantum readiness must accelerate today, and this strategy will set a critical North Star to drive the necessary urgency.

Secure Critical Infrastructure (Pillar 4)

Critical infrastructure resilience is central to our homeland security, economic security, public health and safety. Unfortunately, critical infrastructure entities are increasingly under assault from emboldened cyber adversaries.

In fact, Palo Alto Networks research shows some form of operational disruption in up to 86% of major cyber incidents. Our 2026 Global Incident Response Report underscores another sobering reality: These entities are under assault from all angles. In 87% of cyber incidents, attacks targeted multiple attack surfaces, which spanned the network, cloud, endpoints and identity.

Recognizing that you can’t secure what you can’t see, we need a national-level effort to identify, prioritize and harden the critical infrastructure that the American people depend upon. This strategy puts an important marker in the ground to revitalize those efforts.

Sustain Superiority in Critical and Emerging Technologies (Pillar 5)

Palo Alto Networks was pleased to see the strategy reinforces the core tenets of the AI Action Plan, emphasizing that "secure-by-design" principles for AI technologies are non-negotiable and that AI adoption and AI security can and must be inexorably linked.

Enterprises should be able to deploy AI confidently without fear of data leakage, model tampering or rogue AI agents. However, despite our research showing an 88% success rate of “jailbreaking” techniques against widely deployed AI models, only 6% of organizations currently have an AI security strategy. It’s time to flip this paradigm and put defenders back in the driver’s seat in this AI-first moment.

To support this emerging consensus around the importance of promoting AI security, we developed the Secure AI by Design Policy Roadmap. This framework provides a four-part construct to evaluate the evolving dimensions of threats to AI systems. Palo Alto Networks is also proud to make its comprehensive AI security suite, Prisma^® AIRS, available to all federal agencies at substantial discounts through GSA’s OneGov Initiative.

Build Talent and Capacity (Pillar 6)

Recognizing America’s cyber workforce as a “strategic asset,” the strategy calls for a pragmatic and accessible pipeline for developing talent. The explicit recognition that we should take advantage of existing avenues across government, industry and academia is important. For example, Palo Alto Networks is proud of the impact of its Cybersecurity Academy – that provides free, NIST Framework-aligned curricula covering essential domains, such as cybersecurity fundamentals, enterprise and network security, cloud security, security operations and the AI/cybersecurity nexus.

Resources like this, and those for other entities, can form the basis of a renewed focus on cyber talent development.

Turning Strategic Vision Into Action

Palo Alto Networks views itself as more than a cybersecurity vendor. We see ourselves as an integrated national security partner of the federal government at a moment when defending our digital way of life demands all of us working together. To that end, we are ready to do our part to turn strategic vision into action.

This strategy should be applauded. Let’s roll up our sleeves and get to work.

The post How the National Cyber Strategy Secures Our Digital Way of Life appeared first on Palo Alto Networks Blog.

The Pivot to Large-Scale Intelligence

For decades, Telecommunications Service Providers have been the central nervous system of the global economy, tasked with a singular, critical mission: connecting people.

The industry spent vast amounts of capital building networks that moved voice, then text and finally high-speed mobile data. We succeeded. According to GSMA's most recent report, there are 5.8 billion unique subscriptions. The world is connected.

But the mission is changing fast. We are no longer just moving data; we are now expected to host intelligence.

Today’s enterprises are drowning in data and desperate for AI-led capabilities to analyze and process the information. They are struggling with the immense capital costs, the scarcity of GPUs, and complex data sovereignty regulations that make public cloud options difficult for sensitive workloads.

We are no longer living in the communications age, or the internet age, or the social network era, not even in the generative AI era. We are entering the Agentic Era. In this new era, data is the raw resource, and AI agents and models are the machinery that refines it into value. The infrastructure required to do this – from massive data ingestion to complex training and high-volume real-time inference – is called the "AI Factory.”

And these AI factories are not being designed for human-speed operations, but rather for machine-speed operations.

This creates a generational opportunity for telecommunications service providers (SP). By building new (or transforming existing) data centers and edge locations into AI factories, SPs can offer hosted AI services that are high-performance, low-latency and compliant with regional requirements.

However, building an AI factory isn't just about racking GPUs. It is about realizing that an AI infrastructure presents a fundamentally new threat landscape that legacy security cannot handle. If the SP’s AI factory is compromised (if models are poisoned, identities hijacked, training data exfiltrated) the damage to reputation and national infrastructure is incalculable.

To capture the AI opportunity, service providers need more than computing power; they need a blueprint for a secure AI architecture. At Palo Alto Networks, we view the security of the AI factory as a three-tiered layer cake, requiring holistic, integrated protection from the physical infrastructure up to the AI agents themselves.

The AI Threat Model Is a Structural Shift

For service providers building AI Factories, the challenge is not simply adding another workload to the data center. AI changes the risk equation entirely. It introduces new traffic patterns, new identities and new forms of autonomy that traditional network and core security architectures were never designed to govern.

• Data Gravity Becomes Attack Surface: AI training and inference environments ingest massive volumes of data from distributed enterprise customers, partners and edge environments. This scale creates a new exposure layer. Malicious payloads, embedded model manipulation, and command-and-control traffic can hide within high-throughput AI data flows. Inspection models built for deterministic traffic patterns struggle when confronted with dynamic, AI-driven pipelines.
• Non-Human Identities at Scale: An AI Factory is more than just infrastructure; it will be populated by autonomous agents. These agents retrieve data, call APIs, invoke tools and trigger workflows across networks and cloud environments. They require elevated privileges to function. For service providers, this means managing not just subscriber identities, but fleets of machine identities operating with delegated authority.
• Agentic and Adversarial Threats: Attackers are also operationalizing AI. They probe for weaknesses faster, automate exploitation and increasingly target the AI systems themselves. Prompt injection can redirect an agent’s mission. Data poisoning can subtly degrade model integrity. Rogue agents can be manipulated to access external tools or escalate privileges. These are not traditional perimeter attacks; they are attacks on reasoning, behavior and autonomy.

For service providers offering AI-as-a-Service, the implication is clear: Securing the AI Factory requires more than network defense. It requires real-time governance of models, agents and data flows, ensuring that autonomous systems operate within defined policy boundaries while maintaining performance and scale.

The Foundation — Securing the High-Performance Infrastructure

The base of our cybersecurity stack is the physical and virtual infrastructure of the AI factory itself. This is a high-stakes environment. In a multitenant SP data center, you might have a financial institution fine-tuning a fraud detection model on one rack, and a government agency running inference on satellite imagery on the next. The barriers between these tenants must be absolute.

Foundational cybersecurity has two critical components: perimeter defense and internal segmentation.

The ML-Powered Perimeter

The front door of the AI factory must handle unprecedented throughput while performing deep inspection. Traditional firewalls, relying on static signatures, become bottlenecks and fail to catch novel threats hidden in massive data streams.

Palo Alto Networks addresses this with our flagship ML-Led Next-Generation Firewalls (NGFW). We have embedded machine learning directly into the core of the firewall. Instead of waiting for a patient zero to be identified and a signature created, our NGFWs analyze traffic patterns in real-time to identify and block unknown threats instantly. For an SP, this means you can provide the massive bandwidth required for AI data ingestion without compromising on security inspection at the edge.

Zero Trust Segmentation Inside the Factory

The perimeter is just the start. Once inside the data center, the biggest risk is the lateral movement threats and malware. If an attacker compromises a low-security tenant or a peripheral IoT device, they must not be able to jump to the sensitive GPU clusters or the model storage arrays.

In an AI factory, workloads are highly dynamic and virtualized. We provide robust segmentation across both hardware and software environments. We can enforce granular policies between virtual instances, containers and different stages of the AI pipeline (e.g., isolating training environments from inference operations). This allows a breach in one segment to be contained instantly, protecting the integrity of the entire factory.

The Engine – Securing AI Agents, Apps and Identities

The middle layer of the security stack is where the actual "work" of AI happens – the models, the LLMs, the agents. This is the newest frontier of cybersecurity and where traditional tools are most deficient.

This layer faces two distinct challenges: Protecting the integrity of the AI interaction and managing the identities of the nonhuman actors.

Securing AI Apps and Agents

As enterprises evolve from standalone LLMs to agentic AI systems that reason, call tools, access data, and take action across workflows, the challenge is no longer just what a model says; it is what an AI agent does.

How do you validate that an LLM powering your AI factory does not expose sensitive information, and that autonomous agents cannot be manipulated through jailbreak prompts, tool injection or malicious instructions? How do you prevent an AI agent from accessing unauthorized systems, escalating privileges, or executing unintended actions?

This is the role of Prisma^® AIRS – our security and governance platform for AI agents, apps, models and data. Prisma AIRS operates directly in the execution path of AI applications and autonomous agents. It enforces policy in real time, validates agent behavior, and blocks prompt injection, model manipulation and agent hijacking before they can impact the business.

Beyond filtering outputs, Prisma AIRS governs agent communications, tool access and data flows to prevent credential leakage, mission drift and unauthorized actions. For service providers delivering AI-as-a-Service, or enterprises deploying AI agents internally, Prisma AIRS enables integrity, compliance and continuous control as intelligent systems move from experimentation into mission-critical operations.

Built in alignment with emerging standards like the OWASP Agentic Top 10 Survival Guide, Prisma AIRS operationalizes best practices to defend against real-world agentic threats.

Governing Nonhuman Identity

Perhaps the most profound shift in the AI factory is who or what is doing the work. We are rapidly moving toward ecosystems of autonomous AI Agents. These agents need to authenticate to databases, authorize API calls to other services, and access privileged information just like a human employee.

If an attacker steals the credentials of a high-privilege AI agent, they own the factory.

This is why the Palo Alto Networks acquisition of CyberArk, the global leader in Identity Security, is so strategic for the AI era. CyberArk specializes in protecting privileged access, and crucially managing nonhuman identities. By integrating CyberArk’s capabilities, we can ensure that every AI agent operating within the SP’s factory is robustly authenticated, authorized for minimum necessary access, and its activities are monitored. We are securing the new digital workforce.

The Overwatch – Holistic, AI-Driven Threat Management

The top layer of the stack is about visibility and speed. An AI factory generates a deafening amount of telemetry data from networks, endpoints, clouds and identity systems. No human security operations center (SOC) can sift through this noise manually to find a sophisticated attack.

To fight AI-driven threats, you need AI-driven defense.

This is the role of Cortex^®, our flagship platform for holistic threat management. Cortex is designed to ingest billions of data points from across the entire Palo Alto Networks product portfolio and hundreds of types of third-party equipment, normalizing it into a single source of truth.

Cortex applies advanced AI and machine learning to this vast data lake to detect anomalies that signal a complex attack spanning different threat vectors. It might correlate an unusual login event from an AI agent (detected by the identity layer) with a subtle change in outbound traffic patterns at the firewall (layer 1), recognizing it as data exfiltration in progress.

For a Service Provider, Cortex provides the "single pane of glass" view over their entire AI factory operations, allowing them to detect, investigate and automatically respond to threats at machine speed, vastly reducing Mean Time to Respond (MTTR).

Building the Trust Foundation for the Agentic Era

The transition to becoming an AI factory is a necessary evolution for Service Providers seeking growth in the coming decade. Your ability to offer localized, sovereign, high-performance AI services will differentiate you from those who large-scale and cement your role as an indispensable partner to enterprises and governments.

But this opportunity is inextricably linked to trust. Your customers will not move their most sensitive data and IP into your AI factory unless they are certain it is secure against modern threats.

Security cannot be an afterthought bolted onto an AI infrastructure. It must be woven into the fabric of the factory, from the silicon to the software agents. By adopting a layered approach (securing the high-performance infrastructure with ML-led NGFWs, protecting models and identities with Prisma AIRS and CyberArk, while managing the entire landscape with Cortex) Service Providers can build the trusted foundations the AI era demands.

This week we’ll be at Mobile World Congress talking about our security platform for AI Factories, along with five solutions and ecosystem partners. Come see us at in Hall 4, Stand #4D55.

The post Why Service Providers Must Become Secure AI Factories appeared first on Palo Alto Networks Blog.

Artificial intelligence has shifted to being the primary engine for market leadership. To compete, enterprises are shifting from general-purpose computing to AI factories, specialized infrastructures designed to manage the entire lifecycle of AI. However, this transition requires robust security without sacrificing performance and efficiency.

We are proud to announce that Palo Alto Networks Prisma^® AIRS™, accelerated on the NVIDIA BlueField data processing unit (DPU), is now part of the NVIDIA Enterprise AI Factory validated design.

The integrated solution embeds zero trust security directly into the AI infrastructure, providing comprehensive protection without impacting AI performance. By deploying Palo Alto Networks Prisma^® AIRS™ Network Intercept directly onto the NVIDIA BlueField and extending to the cloud, Prisma AIRS establishes an essential zero trust governance fabric for the AI factory, enabling enterprises to accelerate innovation while maintaining control.

This critical architectural shift enables optimal AI performance and infrastructure efficiency by offloading security processing to an isolated domain, while leveraging the DPU's hardware acceleration via NVIDIA DOCA to enforce security policies at line speed. The implementation also leverages real-time workload information captured using DOCA Argus, which is then passed to Cortex XSIAM^® where it is used for AI-driven responses using the Cortex XSOAR^® orchestration platform.

Rich Campagna, SVP Product Management, Palo Alto Networks said:

The AI Factory is the new engine for value creation, and securing it is a board-level imperative. The validation of Palo Alto Networks Prisma AIRS accelerated with NVIDIA BlueField within the NVIDIA Enterprise AI Factory enables a new security architecture for the AI era. We are embedding trust directly into the infrastructure, giving leaders the confidence to safeguard their proprietary intelligence and deploy AI bravely.

Kevin Deierling, senior vice president of Networking at NVIDIA said:

AI is transforming every industry and security must evolve to protect AI factories. To be scalable, security must be distributed and embedded within the AI infrastructure. This is achieved with NVIDIA BlueField running Palo Alto Networks Prisma AIRS to deliver robust, runtime security for the AI factory, with optimal AI performance and efficiency.

Deploy AI Bravely with a Future-Proof Foundation

The Future of Secure AI Factories

In addition to deploying Palo Alto Networks Prisma AIRS on NVIDIA BlueField in a distributed model, it’s essential to maintain a centralized Hyperscale Security Firewall (HSF) cluster at the ingress and egress points of the AI factory to enforce a defense-in-depth strategy. Beyond network segmentation, individual workloads can selectively route traffic through hyperscale clusters to detect advanced application-layer threats and prevent lateral movement. These hyperscale firewall clusters scale elastically with demand, delivering session resiliency and the high availability required for critical AI operations.

This architecture fundamentally improves the Total Cost of Ownership (TCO) for AI infrastructure. By isolating security functions on BlueField, enterprises enable 100% of host computing resources to be dedicated to AI applications. This elimination of resource contention allows the AI Factory to maximize token throughput and capital efficiency.

This validated design is the blueprint for immediate efficiency. It provides a seamless path for enterprises to shift from general-purpose clusters to secure AI factory infrastructure without costly overhauls. More importantly, this collaboration establishes an unparalleled roadmap for future-proofing your investment. By securing operations with the high-performance NVIDIA BlueField-3 today, the architecture is inherently ready for the next generation, NVIDIA BlueField-4. This forward compatibility helps AI factories immediately handle gigascale demands, scaling up to 6X the compute power and doubling the bandwidth when BlueField-4 becomes available.

The inclusion of the Palo Alto Networks Prisma AIRS platform in the NVIDIA Enterprise AI Factory Validated Design bolsters enterprise AI security. By establishing the zero trust governance fabric of Prisma AIRS runtime security on NVIDIA BlueField, organizations gain a comprehensive defense. Proprietary and sensitive data is secured throughout the entire stack, and models are protected from adversarial threats, such as prompt injection attacks. With Prisma AIRS, the world's most comprehensive AI security platform, leaders gain the confidence to innovate and deploy AI bravely. This validated design is the essential blueprint for securely accelerating your market leadership without compromising security.

Join our "How to Secure the AI Factory" breakout session at NVIDIA GTC 2026, March 16-19, in San Jose, CA to hear more about this transformative solution and accelerate your AI innovation securely.

The post Palo Alto Networks Announces Support for NVIDIA Enterprise AI Factory appeared first on Palo Alto Networks Blog.

The transformative potential of artificial intelligence (AI) across industries is undeniable. But realizing AI's true value hinges on three cybersecurity imperatives: Understanding the AI-cybersecurity nexus, harnessing AI to supercharge cyber defense, and embedding security into AI tools from the ground up through Secure AI by Design.

Nowhere is this convergence more urgent than in financial services. Sitting at the center of our global economy, financial institutions face a dual mandate: Embrace AI for cybersecurity and cybersecurity for AI.

I was honored to cover these key principals in my testimony before the House Committee on Financial Services, led by Chairman French Hill. The hearing, entitled “From Principles to Policy: Enabling 21st Century AI Innovation in Financial Services” convened witnesses from Palo Alto Networks, Google, NASDAQ, Zillow and Public Citizen. Together, we examined AI use cases in the financial services and housing sectors, including those specific to cybersecurity. We assessed how existing laws and frameworks apply in the age of AI.

The Defense Advantage Is AI-Powered Security Operations

Attacks have become faster, with the time from compromise to data exfiltration now 100 times faster than four years ago. The financial sector bears disproportionate risk, given the value of its data and interconnected systems, while firms contend with evolving regulatory expectations, talent shortages and the persistent tendency to elevate cybersecurity only after an incident.

Generative and agentic AI intensify these pressures by accelerating every phase of the attack chain, from deepfake-driven fraud to tailored spear phishing campaigns. Our researchers at Unit 42^® have found that agentic AI, autonomous systems that can reason and act without human intervention, can compress what was once a multiday ransomware campaign into roughly 25 minutes.

To keep pace, financial institutions must pivot to AI-driven defenses that operate at machine speed.

Security operations centers (SOC) have long been overwhelmed by traditional alerts and fragmented data. Security teams, forced into manual triage across dozens of disparate tools, face an inefficient model that leaves vulnerabilities exposed, burns out analysts and makes it impossible to operate at the speed necessary to outpace modern attacks.

The average enterprise SOC ingests data from 83 security solutions across 29 vendors. In 75% of breaches, logging existed that should have flagged anomalous behavior, but critical signals were buried. With 90% of SOCs still relying on manual processes, adversaries have the clear advantage.

AI-driven SOCs flip this paradigm, acting as a force multiplier to substantially reduce detection and response times. To illustrate the scale of this necessity, consider our own security operations. Palo Alto Networks SOC analyzes over 90 billion events daily. Without AI, this would be an impossible task for human analysts. But by applying AI, we distill that down to a single actionable incident.

Financial institutions migrating to AI-driven SOC platforms are seeing transformative results:

• One customer reduced the Mean Time to Respond (MTTR) from one day to 14 minutes.
• Another prevented 22,831 threats and processed 113,271 threat indicators in less than 5 seconds.
• A large bank saved 180 hours per year by automating security information and event management reporting; 500 hours through automated data collection; 360 hours by automating four Chief Technology Officer playbooks; and 240 hours with automated threat intelligence enrichment.

These improvements are critical to stopping threat actors. But none of this would be possible without AI.

Securing the New AI Attack Surface

As AI adoption grows, it will further expand the attack surface, creating new vectors targeting training data and model environments. AI's rapid growth is outpacing the adoption of security measures designed to protect it. Nearly three-quarters of S&P 500 companies now flag AI as a material risk in their public disclosures, up from just 12% in 2023.

Traditional security tools rely on static rules that miss advanced attacks, like multistep prompt injections or adversarial manipulations. Autonomous AI agents can take unpredictable actions that are difficult to monitor with legacy methods.

Rapid AI adoption has exposed organizations' infrastructure, data, models, applications and agents to unique threats. Unlike traditional cyber exploits that target software vulnerabilities, AI-specific attacks can manipulate the foundation of how an AI system learns and operates.

A Secure AI by Design

Even with an understanding of the risks, many organizations struggle with the lack of clarity on what effective AI security looks like in practice. Recognizing the gap between intent and execution, Palo Alto Networks developed a Secure AI by Design policy roadmap that provides organizations with a comprehensive roadmap that integrates security throughout the entire AI lifecycle.

A proactive stance ensures security is a feature, not an afterthought, crucial for building trust, maintaining compliance and mitigating risks. The approach addresses four imperatives organizations most pressingly face in AI adoption:

1. Secure the use of external AI tools.

2. Secure the underlying AI infrastructure and data.

3. Safely build and deploy AI applications.

4. Monitor and control AI agents.

The Path Forward

For financial institutions, Secure AI by Design must be anchored in enterprise governance. Institutions should maintain risk-tiered AI inventories, enforce strict access controls and implement testing commensurate with risk. Governance structures should enable board oversight and align with established model risk practices.

Policymakers also have a critical role to play in promoting AI-driven security operations, championing voluntary Secure AI by Design frameworks, ensuring policies safeguard innovation, enabling controlled experimentation and strengthening public-private collaboration.

Ultimately, the financial institutions that will thrive will recognize cybersecurity as the foundation that makes innovation possible. By embracing AI-driven defenses and securing AI systems from the ground up, the sector can confidently unlock AI's transformative potential while safeguarding the trust and stability that underpin the global economy.

Read the full testimony to learn more about how cybersecurity can enable AI innovation in financial services.

The post From the Hill: The AI-Cybersecurity Imperative in Financial Services appeared first on Palo Alto Networks Blog.