A recently noticed configuration inside Microsoft Copilot may allow the AI tool to reference activity from several other Microsoft platforms, prompting renewed discussion around data privacy and AI personalization. The option, which appears within Copilot’s settings, enables the assistant to use information connected to services such as Bing, MSN, and the Microsoft Edge browser. Users who are uncomfortable with this level of integration can switch the feature off.
Like many modern artificial intelligence systems, Copilot attempts to improve the usefulness of its responses by understanding more about the person interacting with it. The assistant normally does this by remembering past conversations and storing certain details that users intentionally share during chats. These stored elements help the AI maintain context across multiple interactions and generate responses that feel more tailored.
However, a specific configuration called “Microsoft usage data” expands that capability. According to reporting first highlighted by the technology outlet Windows Latest, this setting allows Copilot to reference information associated with other Microsoft services a user has interacted with. The option appears within the assistant’s Memory controls and is available through both the Copilot website and its mobile applications. Observers believe the setting was introduced recently as part of Microsoft’s effort to strengthen personalization features in its AI tools.
The Memory feature in Copilot is designed to help the assistant retain useful context. Through this system, the AI can recall earlier conversations, remember instructions or factual information shared by users, and potentially reference certain account-linked activity from other Microsoft products. The idea is that by understanding more about a user’s interests or previous discussions, the assistant can provide more relevant answers.
In practice, such capabilities can be helpful. For instance, a user who discussed a topic with Copilot previously may want to continue that conversation later without repeating the entire background. Similarly, individuals seeking guidance about personal or professional matters may receive more relevant suggestions if the assistant has some awareness of their preferences or circumstances.
Despite the convenience, the feature also raises questions about privacy. Some users may be concerned that allowing an AI assistant to accumulate information from multiple services could expose more personal data than expected. Others may want to know how that information is used beyond personalizing conversations.
Microsoft addresses these concerns in its official Copilot documentation. In its frequently asked questions section, the company states that user conversations are processed only for limited purposes described in its privacy policies. According to Microsoft, this information may be used to evaluate Copilot’s performance, troubleshoot operational issues, identify software bugs, prevent misuse of the service, and improve the overall quality of the product.
The company also says that conversations are not used to train AI models by default. Model training is controlled through a separate configuration, which users can choose to disable if they do not want their interactions contributing to AI development.
Microsoft further clarifies that Copilot’s personalization settings do not determine whether a user receives targeted advertisements. Advertising preferences are managed through a different option available in the Microsoft account privacy dashboard. Users who want to stop personalized advertising must adjust the Personalized ads and offers setting separately.
Even with these explanations, privacy concerns remain understandable, particularly because Microsoft documentation indicates that Copilot’s personalization features may already be activated automatically in some cases. When reviewing the settings on a personal device, these options were found to be switched on. Users who prefer not to allow Copilot to access broader usage data may therefore wish to disable them.
Checking these settings is straightforward. Users can open Copilot through its website or mobile application and ensure they are signed in with their Microsoft account. On the web interface, selecting the account name at the bottom of the left-hand panel opens the Settings menu, where the Memory section can be accessed. In the mobile application, the same controls are available through the side navigation menu by tapping the account name and choosing Memory.
Inside the Memory settings, users will see a general control labeled “Personalization and memory.” Two additional options appear beneath it: “Facts you’ve shared,” which stores information provided directly during conversations, and “Microsoft usage data,” which allows Copilot to reference activity from other Microsoft services.
To limit this behavior, users can switch off the Microsoft usage data toggle. They may also disable the broader Personalization and memory option if they prefer that the AI assistant does not retain contextual information about their interactions. Copilot also provides a “Delete all memory” function that removes all stored data from the system. If individual personal details have been recorded, they can be reviewed and deleted through the editing option next to “Facts you’ve shared.”
Security and privacy experts generally advise caution when sharing information with AI assistants, even when personalization features remain enabled. Sensitive or confidential details should not be entered into conversations. Microsoft itself recommends avoiding the disclosure of certain types of highly personal data, including information related to health conditions or sexual orientation.
The broader development reflects a growing trend in the technology industry. As AI assistants become integrated across multiple platforms and services, companies are increasingly using cross-service data to make these tools more helpful and personalized. While this approach can improve convenience and usability, it also underlines the grave necessity for transparent privacy controls so users remain aware of how their information is being used and can adjust those settings when necessary.
Cybersecurity investigators at Google have confirmed that state-sponsored hacking groups are actively relying on generative artificial intelligence to improve how they research targets, prepare cyber campaigns, and develop malicious tools. According to the company’s threat intelligence teams, North Korea–linked attackers were observed using the firm’s AI platform, Gemini, to collect and summarize publicly available information about organizations and employees they intended to target. This type of intelligence gathering allows attackers to better understand who works at sensitive companies, what technical roles exist, and how to approach victims in a convincing way.
Investigators explained that the attackers searched for details about leading cybersecurity and defense companies, along with information about specific job positions and salary ranges. These insights help threat actors craft more realistic fake identities and messages, often impersonating recruiters or professionals to gain the trust of their targets. Security experts warned that this activity closely resembles legitimate professional research, which makes it harder for defenders to distinguish normal online behavior from hostile preparation.
The hacking group involved, tracked as UNC2970, is linked to North Korea and overlaps with a network widely known as Lazarus Group. This group has previously run a long-term operation in which attackers pretended to offer job opportunities to professionals in aerospace, defense, and energy companies, only to deliver malware instead. Researchers say this group continues to focus heavily on defense-related targets and regularly impersonates corporate recruiters to begin contact with victims.
The misuse of AI is not limited to one actor. Multiple hacking groups connected to China and Iran were also found using AI tools to support different phases of their operations. Some groups used AI to gather targeted intelligence, including collecting email addresses and account details. Others relied on AI to analyze software weaknesses, prepare technical testing plans, interpret documentation from open-source tools, and debug exploit code. Certain actors used AI to build scanning tools and malicious web shells, while others created fake online identities to manipulate individuals into interacting with them. In several cases, attackers claimed to be security researchers or competition participants in order to bypass safety restrictions built into AI systems.
Researchers also identified malware that directly communicates with AI services to generate harmful code during an attack. One such tool, HONESTCUE, requests programming instructions from AI platforms and receives source code that is used to build additional malicious components on the victim’s system. Instead of storing files on disk, this malware compiles and runs code directly in memory using legitimate system tools, making detection and forensic analysis more difficult. Separately, investigators uncovered phishing kits designed to look like cryptocurrency exchanges. These fake platforms were built using automated website creation tools from Lovable AI and were used to trick victims into handing over login credentials. Parts of this activity were linked to a financially motivated group known as UNC5356.
Security teams also reported an increase in so-called ClickFix campaigns. In these schemes, attackers use public sharing features on AI platforms to publish convincing step-by-step guides that appear to fix common computer problems. In reality, these instructions lead users to install malware that steals personal and financial data. This trend was first flagged in late 2025 by Huntress.
Another growing threat involves model extraction attacks. In these cases, adversaries repeatedly query proprietary AI systems in order to observe how they respond and then train their own models to imitate the same behavior. In one large campaign, attackers sent more than 100,000 prompts to replicate how an AI model reasons across many tasks in different languages. Researchers at Praetorian demonstrated that a functional replica could be built using a relatively small number of queries and limited training time. Experts warned that keeping AI model parameters secret is not enough, because every response an AI system provides can be used as training data for attackers.
Google, which launched its AI Cyber Defense Initiative in 2024, stated that artificial intelligence is increasingly amplifying the capabilities of cybercriminals by improving their efficiency and speed. Company representatives cautioned that as attackers integrate AI into routine operations, the volume and sophistication of attacks will continue to rise. Security specialists argue that defenders must adopt similar AI-powered tools to automate threat detection, accelerate response times, and operate at the same machine-level speed as modern attacks.
Artificial intelligence is increasingly influencing the cyber security infrastructure, but recent claims about “AI-powered” cybercrime often exaggerate how advanced these threats currently are. While AI is changing how both defenders and attackers operate, evidence does not support the idea that cybercriminals are already running fully autonomous, self-directed AI attacks at scale.
For several years, AI has played a defining role in cyber security as organisations modernise their systems. Machine learning tools now assist with threat detection, log analysis, and response automation. At the same time, attackers are exploring how these technologies might support their activities. However, the capabilities of today’s AI tools are frequently overstated, creating a disconnect between public claims and operational reality.
Recent attention has been driven by two high-profile reports. One study suggested that artificial intelligence is involved in most ransomware incidents, a conclusion that was later challenged by multiple researchers due to methodological concerns. The report was subsequently withdrawn, reinforcing the importance of careful validation. Another claim emerged when an AI company reported that its model had been misused by state-linked actors to assist in an espionage operation targeting multiple organisations.
According to the company’s account, the AI tool supported tasks such as identifying system weaknesses and assisting with movement across networks. However, experts questioned these conclusions due to the absence of technical indicators and the use of common open-source tools that are already widely monitored. Several analysts described the activity as advanced automation rather than genuine artificial intelligence making independent decisions.
There are documented cases of attackers experimenting with AI in limited ways. Some ransomware has reportedly used local language models to generate scripts, and certain threat groups appear to rely on generative tools during development. These examples demonstrate experimentation, not a widespread shift in how cybercrime is conducted.
Well-established ransomware groups already operate mature development pipelines and rely heavily on experienced human operators. AI tools may help refine existing code, speed up reconnaissance, or improve phishing messages, but they are not replacing human planning or expertise. Malware generated directly by AI systems is often untested, unreliable, and lacks the refinement gained through real-world deployment.
Even in reported cases of AI misuse, limitations remain clear. Some models have been shown to fabricate progress or generate incorrect technical details, making continuous human supervision necessary. This undermines the idea of fully independent AI-driven attacks.
There are also operational risks for attackers. Campaigns that depend on commercial AI platforms can fail instantly if access is restricted. Open-source alternatives reduce this risk but require more resources and technical skill while offering weaker performance.
The UK’s National Cyber Security Centre has acknowledged that AI will accelerate certain attack techniques, particularly vulnerability research. However, fully autonomous cyberattacks remain speculative.
The real challenge is avoiding distraction. AI will influence cyber threats, but not in the dramatic way some headlines suggest. Security efforts should prioritise evidence-based risk, improved visibility, and responsible use of AI to strengthen defences rather than amplify fear.
A security bulletin from Anthropic describes a recent cybercrime campaign in which a threat actor used the company’s Claude AI system to steal data and demand payment. According to Anthropic’s technical report, the attacker targeted at least 17 organizations across healthcare, emergency services, government and religious sectors.
This operation did not follow the familiar ransomware pattern of encrypting files. Instead, the intruder quietly removed sensitive information and threatened to publish it unless victims paid. Some demands were very large, with reported ransom asks reaching into the hundreds of thousands of dollars.
Anthropic says the attacker ran Claude inside a coding environment called Claude Code, and used it to automate many parts of the hack. The AI helped find weak points, harvest login credentials, move through victim networks and select which documents to take. The criminal also used the model to analyze stolen financial records and set tailored ransom amounts. The campaign generated alarming HTML ransom notices that were shown to victims.
Anthropic discovered the activity and took steps to stop it. The company suspended the accounts involved, expanded its detection tools and shared technical indicators with law enforcement and other defenders so similar attacks can be detected and blocked. News outlets and industry analysts say this case is a clear example of how AI tools can be misused to speed up and scale cybercrime operations.
Why this matters for organizations and the public
AI systems that can act automatically introduce new risks because they let attackers combine technical tasks with strategic choices, such as which data to expose and how much to demand. Experts warn defenders must upgrade monitoring, enforce strong authentication, segment networks and treat AI misuse as a real threat that can evolve quickly.
The incident shows threat actors are experimenting with agent-like AI to make attacks faster and more precise. Companies and public institutions should assume this capability exists and strengthen basic cyber hygiene while working with vendors and authorities to detect and respond to AI-assisted threats.
Security experts have identified a new kind of cyber attack that hides instructions inside ordinary pictures. These commands do not appear in the full image but become visible only when the photo is automatically resized by artificial intelligence (AI) systems.
The attack works by adjusting specific pixels in a large picture. To the human eye, the image looks normal. But once an AI platform scales it down, those tiny adjustments blend together into readable text. If the system interprets that text as a command, it may carry out harmful actions without the user’s consent.
Researchers tested this method on several AI tools, including interfaces that connect with services like calendars and emails. In one demonstration, a seemingly harmless image was uploaded to an AI command-line tool. Because the tool automatically approved external requests, the hidden message forced it to send calendar data to an attacker’s email account.
The root of the problem lies in how computers shrink images. When reducing a picture, algorithms merge many pixels into fewer ones. Popular methods include nearest neighbor, bilinear, and bicubic interpolation. Each creates different patterns when compressing images. Attackers can take advantage of these predictable patterns by designing images that reveal commands only after scaling.
To prove this, the researchers released Anamorpher, an open-source tool that generates such images. The tool can tailor pictures for different scaling methods and software libraries like TensorFlow, OpenCV, PyTorch, or Pillow. By hiding adjustments in dark parts of an image, attackers can make subtle brightness shifts that only show up when downscaled, turning backgrounds into letters or symbols.
Mobile phones and edge devices are at particular risk. These systems often force images into fixed sizes and rely on compression to save processing power. That makes them more likely to expose hidden content.
The researchers also built a way to identify which scaling method a system uses. They uploaded test images with patterns like checkerboards, circles, and stripes. The artifacts such as blurring, ringing, or color shifts revealed which algorithm was at play.
This discovery also connects to core ideas in signal processing, particularly the Nyquist-Shannon sampling theorem. When data is compressed below a certain threshold, distortions called aliasing appear. Attackers use this effect to create new patterns that were not visible in the original photo.
According to the researchers, simply switching scaling methods is not a fix. Instead, they suggest avoiding automatic resizing altogether by setting strict upload limits. Where resizing is necessary, platforms should show users a preview of what the AI system will actually process. They also advise requiring explicit user confirmation before any text detected inside an image can trigger sensitive operations.
This new attack builds on past research into adversarial images and prompt injection. While earlier studies focused on fooling image-recognition models, today’s risks are greater because modern AI systems are connected to real-world tools and services. Without stronger safeguards, even an innocent-looking photo could become a gateway for data theft.