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AI on the loose: What latest cyber incidents mean for your organization

December 2026 employment law letter
Authors: 

Joseph J. Lazzarotti & Damon W. Silver, Jackson Lewis P.C.

Recent reports involving leading artificial intelligence (AI) developers have heightened concern about whether AI agents can operate beyond their intended boundaries and/or be used by cyber criminals to perpetuate attacks that are more difficult to prevent and contain. For organizations adopting AI across business functions, the issue is larger than any single model or incident: AI may allow threat actors to identify vulnerabilities, develop exploits, and move through connected systems at a speed that outpaces traditional defenses.

That doesn’t make existing safeguards obsolete. Multifactor authentication, endpoint detection and response, encryption, and other controls remain essential. But organizations may need to reassess what constitutes “reasonable safeguards” in an environment where attacks can become faster, more adaptive, and more difficult to contain.

Prevention is critical

On a recent podcast, the authors of this article (who are co-leaders of Jackson Lewis’ privacy, data, and cybersecurity group) discussed how legal, privacy, and security teams can respond. The central message: Prevention remains critical, but organizations also need to reduce the data and access available to an intruder and prepare to respond when controls are overcome. Here are the key highlights from the discussion:

  • AI may enable threat actors to discover and exploit vulnerabilities faster than organizations can remediate them.

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