OT Security in an AI-Powered World

OT Security in an AI-Powered World
OT Security in an AI-Powered World

From manufacturing floors to transportation networks, operational technology (OT) environments are undergoing a seismic shift driven by digital transformation. AI-powered devices, cloud connectivity and remote operations promise faster innovation and better efficiency, but they also create a broader attack surface for increasingly sophisticated threats. If OT security hasn’t reached your board’s agenda, this is the moment to elevate it and outpace emerging risks.


The evolving threat surface

Historically, many OT networks were air-gapped or only loosely connected to IT, so advanced tactics like AI-driven ransomware or phishing were not the norm. Today, however, even incremental connectivity to IT or cloud systems expands the threat surface. Recent research shows that 70% of recent OT breaches originated on the IT side, often through unpatched systems or exposed remote-access protocols such as VNC or RDP. Adversaries can use these entry points to pivot into OT and disrupt operations.

One example is the FrostyGoop/BUSTLEBERM attack, which underscores the risks of OT devices being remotely accessed by attackers. Malicious actors used FrostyGoop to attack a Ukrainian municipal energy company in early 2024, marking the ninth reported case of OT-centric malware. While in this instance, the OT devices were not intended to be internet-accessible, it highlights the need for better insight into OT devices and their communications – especially as cloud-based industrial IoT (IIoT) devices are adopted.

Large-scale AI-assisted attacks remain uncommon for many industrial organizations, but the barriers are dropping. Attackers can automate reconnaissance, craft targeted phishing emails and develop deepfake calls with less effort than before. Ransomware, which we’ve already seen impact OT uptime, has undoubtedly benefited from AI advancements. In one incident, the Black Basta ransomware group caused a printed circuit board assembly manufacturer an estimated $17 million in damages. They entered through a simple phishing email, moved laterally and deployed ransomware within 13.5 hours, all while employees were off-site. Experts believe that with AI and large language models, this entire process could be shortened to just three hours.

Although not every OT environment faces threats at this level, the trend is clear: OT risks will keep growing as AI-driven tactics become easier to execute. Using AI to facilitate detection and even enforcement/prevention becomes necessary, considering the number of IIoT devices in industrial environments.
 

Mounting regulatory pressures and real-world impacts

Major shutdowns in critical infrastructure have drawn regulators’ attention. Recent United States Securities and Exchange Commission (SEC) and other global mandates require organizations to disclose security incidents quickly. Meanwhile, AI can be a double-edged sword. It strengthens operational efficiency, but also increases the attack surface and breaks the traditional Purdue/air gap model. Additionally, AI is empowering faster and more sophisticated attacks.

Nation-state actors see OT environments as high-value targets with the potential to disrupt essential services at scale. In this climate, boards demand a deeper understanding of how OT systems are protected and whether risks on the horizon are addressed.
 

A strategic blueprint for OT security

Instead of relying on fragmented point solutions or air gaps, organizations need a unified OT security framework that addresses visibility, segmentation, security monitoring and threat prevention in a coordinated way. This begins by building a robust view of existing OT assets, including legacy equipment and any AI-driven endpoints or services where practical, while applying segmentation guided by real-time risk analysis and behavior monitoring. Because AI-driven attackers can move at machine speed, purely reactive defenses cannot keep up, so proactive risk mitigation and prevention capabilities are crucial. Advanced firewalls and network security solutions have evolved to combine strong OT asset visibility and risk analysis with informed segmentation policies and security monitoring and prevention to truly secure and protect production environments. Equally important is a shared playbook for OT and security teams, aligned on risk management and cross-functional skills. Without clear governance, even the most sophisticated tools cannot protect critical operations.
 

Charting the path forward

With AI transforming every stage of production, organizations are rethinking how to safeguard the lifeblood of their operations. From the boardroom to the factory floor, success depends on uniting IT and OT strategies under a single security framework while tailoring to OT-specific operational needs. This includes harnessing AI for better detection and automation while continually evolving governance to match emerging threats. In an era of converged networks and fast-moving attacks, proactive OT security is no longer a nice to have; it is a fundamental business imperative.

About The Author


Qiang Huang is head of product management, IoT Security, at Palo Alto Networks. Global cybersecurity leader Palo Alto Networks continually delivers innovation to enable secure digital transformation—even as the pace of change is accelerating.


Did you enjoy this great article?

Check out our free e-newsletters to read more great articles..

Subscribe