AI-Driven Software Vulnerabilities Raise Cybersecurity Risks For Indian Listed Companies, Data And Costs

  • Posted: 25 Oct 2026, 12:14 PM IST
  • 2 Min. Read

AI-Driven Software Vulnerabilities Raise Cybersecurity Risks For Indian Listed Companies, Data And Costs
AI-driven software flaws could expose Indian listed companies to cyberattacks.

AI is accelerating software flaw detection, increasing cyber risks for Indian listed companies. Banks, IT firms and e-commerce businesses could face service disruptions, data breaches and higher security costs.

Artificial intelligence (AI) is accelerating the discovery of software weaknesses, raising concerns about fresh cyberattacks and digital disruptions. Cybersecurity experts warn that attackers could exploit flaws faster than organisations can patch them. The warning follows recent outages affecting government websites globally, linked to weaknesses in PHP, a widely used programming language. Research from threat intelligence firm VulnCheck indicates that the number of discovered digital flaws doubled year on year, partly driven by AI.

AI systems can examine large codebases continuously, uncovering weaknesses that may have remained hidden for years. Experts say the time needed to develop tools that exploit vulnerabilities is also decreasing, potentially leaving cybersecurity teams with less time to respond.

The recent PHP-related disruption highlighted the operational challenge. Some website operators reportedly took services offline because they feared attackers could exploit the flaws before patches were deployed. Vulnerabilities affecting Node.js and other digital platforms were also reported during the same week.

However, experts noted that discovering more weaknesses does not automatically lead to more successful cyberattacks. The actual risk depends on two factors. First, the ability of the attackers to exploit the flaws. Second, the ability of the organisations to secure affected systems in time.

For Indian listed companies, the threat extends beyond technology businesses. A software flaw could disrupt banking services, expose customer data or take an e-commerce website offline. Companies may also have to spend more to fix these problems.

India has already seen warnings about AI-related cyber risks. The Indian Computer Emergency Response Team (CERT-In) issued an advisory in April highlighting the ability of advanced AI systems to identify software vulnerabilities and accelerate exploit development. In October, reports also detailed cases in which AI agents accessed exposed business records and confidential information belonging to Indian organisations.

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This article is for informational purposes only and should not be considered investment advice from Kotak Neo. For compliance T&C and disclaimers, Visit www.kotakneo.com/disclaimer

About the Author
Vishwa Ved
Vishwa Ved

Vishwa has spent 10+ years across fintech and FMCG doing what most people miss, connecting the dots, catching trends before they trend, and finding the angle nobody else thought to ask about.

At Kotak Neo, she drives content strategy for neoshorts, Kotak News Desk, and Investing Guide, turning market noise into something worth reading.

When she's not decoding markets, she trades charts for canvases, chasing art, painting, and architecture across cities she's yet to explore.