The Australian Signals Directorate (ASD) has issued a stark warning to the public and businesses, advising that essential online services may go offline unexpectedly as the nation faces a surge in sophisticated digital threats. The agency emphasized that protecting the integrity of systems must take precedence over keeping them continuously available.
Abigail Bradshaw, the director general of the ASD, stated that the agency needs advanced artificial intelligence tools to automate defenses against “AI-enabled attackers.” She noted that hostile foreign governments, criminal groups, and independent hackers are increasingly using AI to gather intelligence, disrupt critical infrastructure, and steal funds. To counter this, Bradshaw argued that Australia must accelerate the modernization of its technology foundations.
Rising Incident Rates and State-Sponsored Activity
The warning comes from the ASD’s annual cyber threat report, which revealed a significant jump in malicious activity during the 2025-26 fiscal year. The agency responded to 1,500 cybersecurity incidents, marking a 20 percent increase from the previous year. Additionally, the ASD notified external entities, including businesses and government bodies, of more than 4,400 potential malicious incidents, an 80 percent rise in a single year.

The report highlighted that government and private networks in Australia experienced persistent breach attempts from state-based actors. The ASD claimed that actors in the Indo-Pacific region could be launching these attacks to prepare for potential future conflicts, including intelligence collection or disruption activities. The agency warned that all network owners are facing elevated threat levels, making cybersecurity a core business risk and a leadership responsibility rather than just a technical issue.
AI as a Double-Edged Sword
While the increasing availability of AI creates opportunities for innovation, the ASD noted it also allows cybercriminals to find vulnerabilities and launch attacks faster and more effectively. The report suggested that integrating AI tools into cybersecurity functions could help identify potential weaknesses or suspicious behavior, thereby improving response times.

Bradshaw mentioned that the ASD has access to Anthropic’s Mythos model, a powerful AI tool designed to identify unknown flaws in IT systems. Although the lab behind the model stated it could not release it publicly due to its potential to expose system vulnerabilities, the Australian government believes that collaborating with leading AI labs is critical to bolstering national defenses.
Defence Minister Richard Marles and Home Affairs Minister Tony Burke supported the agency’s stance. Marles stated that Australians must enhance their cyber defenses while harnessing the benefits of AI. Burke added that the government is positioning Australia to respond to the evolving threats and opportunities presented by emerging technologies.
Legacy Systems and Immediate Actions
The ASD identified legacy technology, such as outdated systems no longer supported by creators, as among the biggest risks and most attractive targets for hackers. This concern was heightened last week when newly discovered vulnerabilities in PHP, a programming language underpinning most websites, triggered a rush by governments and businesses to apply fixes.

Bradshaw and Marles reiterated that organizations should prioritize the security of their systems over keeping them online. This approach could result in more services being forced offline while they are secured. The agency urged organizations to update their systems, seek assistance from the ASD, and report suspicious incidents. Bradshaw concluded that in a threat environment transformed by AI, collective action remains the strongest defense.
Source: The Guardian

