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Microsoft Report Reveals Hackers Exploit AI In Cyberattacks

Microsoft’s new Threat Intelligence report reveals that threat actors are using genAI tools for various tasks, such as phishing, surveillance.


According to Microsoft, hackers are increasingly using AI in their work to increase attacks, scale cyberattack activity, and limit technical barriers throughout all aspects of a cyberattack. 

Microsoft’s new Threat Intelligence report reveals that threat actors are using genAI tools for various tasks, such as phishing, surveillance, malware building, infrastructure development, and post-hack activity. 

About the report

In various incidents, AI helps to create phishing emails, summarize stolen information, debug malware, translate content, and configure infrastructure. “Microsoft Threat Intelligence has observed that most malicious use of AI today centers on using language models for producing text, code, or media. Threat actors use generative AI to draft phishing lures, translate content, summarize stolen data, generate or debug malware, and scaffold scripts or infrastructure,” the report said. 

"For these uses, AI functions as a force multiplier that reduces technical friction and accelerates execution, while human operators retain control over objectives, targeting, and deployment decisions,’ warns Microsoft.

AI in cyberattacks 

Microsoft found different hacking gangs using AI in their cyberattacks, such as North Korean hackers known as Coral Sleet (Storm-1877) and Jasper Sleet (Storm-0287), who use the AI in their remote IT worker scams. 

The AI helps to make realistic identities, communications, and resumes to get a job in Western companies and have access once hired. Microsoft also explained how AI is being exploited in malware development and infrastructure creation. Threat actors are using AI coding tools to create and refine malicious code, fix errors, and send malware components to different programming languages. 

The impact

A few malware experiments showed traces of AI-enabled malware that create scripts or configure behaviour at runtime. Microsoft found Coral Sleet using AI to make fake company sites, manage infrastructure, and troubleshoot their installations. 

When security analysts try to stop the use of AI in these attacks, Microsoft says hackers are using jailbreaking techniques to trick AI into creating malicious code or content. 

Besides generative AI use, the report revealed that hackers experiment with agentic AI to do tasks autonomously. The AI is mainly used for decision-making currently. As IT worker campaigns depend on the exploitation of authentic access, experts have advised organizations to address these attacks as insider risks. 

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