Dream CEO warns AI is supercharging Iran's cyber threat

Artificial intelligence is fundamentally altering the global cyber battlefield, according to Shalev Hulio, CEO and co-founder of Dream. Speaking at Cyber Week at Tel Aviv University and in subsequent discussions with journalists, Hulio noted that AI is lowering the barrier to entry for complex offensive operations. This shift enables nations like Iran to execute attacks that would have been difficult or impossible just a few years ago.

Hulio explained that Iran's cyber capabilities have been significantly amplified by access to advanced AI models. He specifically pointed to models developed in China, which often feature fewer safety restrictions compared to their American counterparts. 'What we are seeing now is that because of AI and because of access to AI, the Iranian threat actors are becoming much more sophisticated,' he stated. He observed that these actors are now using AI to discover zero-day vulnerabilities and employing autonomous systems for lateral movement within networks.

The integration of AI extends across the entire cyberattack lifecycle. Hulio described a process where AI generates convincing phishing campaigns and social engineering attacks, identifies software flaws, and navigates compromised networks with minimal human intervention. A particularly concerning development is the use of AI to reverse-engineer software patches. Once vendors release updates, attackers can analyze the fixes to determine the underlying vulnerability and rapidly identify systems that remain unpatched.

Hulio emphasized that the availability of cheap and high-quality Chinese models has democratized advanced cyber capabilities. 'In the past, sophisticated cyberattacks were conducted mostly by nation-states or very sophisticated hackers,' he recalled. 'Now, basically anyone who has access to Chinese models without guardrails can use them in order to create and conduct sophisticated cyberattacks.' This shift changes the fundamental economics of cyber warfare, allowing smaller groups or even individuals to conduct operations that previously required large teams of specialists.

This evolution renders traditional cybersecurity approaches increasingly obsolete. Hulio argued that the historical concept of protecting against past threats no longer suffices. 'The whole concept of cybersecurity was that you protect against the past,' he said. 'You're not even protecting against the present or the future. What AI brings you is basically even more complicated because now attacks are becoming much faster, and you need to protect against the unknown unknowns of the world.'

Beyond regional conflicts, Iran's cyber ambitions now target a global audience. While Israel remains a primary target, Hulio pointed to recent attacks against water infrastructure in both Israel and the United States as examples of Iran's expanding threat profile. The nation is also targeting universities and private individuals to steal and expose personal information. 'They are trying to position themselves as a global threat actor, and I think it's a risk,' Hulio warned.

Hulio framed AI as a matter of national sovereignty, comparing dependence on foreign AI providers to reliance on foreign energy supplies. He advocated for sovereign AI strategies where governments control the full technological stack, from computing infrastructure to applications, especially for systems trained on sensitive national-security data. 'No country should depend on foreign models' for critical applications, he asserted, adding that tailor-made sovereign systems will become vital as AI embeds itself in government operations.

Regarding the global race for technological leadership, Hulio acknowledged that Israel entered the AI competition later than the United States and China and currently has fewer AI engineers. However, he believed Israel's strengths in defense technology, intelligence, and cybersecurity position it to lead in specialized domains such as defense robotics and cyber-AI integration. He also urged Europe to increase investment and reduce excessive regulation to maintain competitiveness against the US and China.

Looking ahead, Hulio identified quantum computing as the next transformative technology. He predicted that the convergence of AI and quantum computing will accelerate scientific research in medicine and drug discovery. Although some believe a breakthrough is still distant, Hulio estimated that a significant shift, or Q-Day, will occur within the next 18 to 24 months. 'And when this happens, there will be a cure for cancer within a year,' he said.

Ultimately, Hulio suggested that the next superpowers will be defined by their mastery of a new technological triad. 'The next super nations are going to be nations that control three things: cyber, AI, and quantum computing,' he concluded.