PwC has cautioned that cybercriminals are now incorporating AI into their operations, empowering even less experienced hackers to carry out more complex and widespread attacks. A recent report from the incident response team of the renowned global consultancy has highlighted clients’ growing concerns over AI-driven threats.

The Annual Threat Dynamics 2026 report by PwC, released on March 25, emphasized that while AI is being exploited by malevolent actors, it can also serve as a tool for cybersecurity professionals. PwC stated that AI is a top priority for security leaders as it enhances the capabilities of both attackers and defenders.

The report outlined how threat actors are leveraging AI to boost their effectiveness, employing it to speed up the creation of malware and automate reconnaissance processes. Additionally, cybercriminals are utilizing AI-generated content from the dark web to craft convincing phishing schemes and expand social engineering efforts across various languages and platforms.

With advancements in AI technology and major companies unveiling new products, threat actors are swiftly adapting these tools for nefarious purposes, particularly in the realm of agentic AI and AI agents. For instance, following the introduction of ReaperAI – an AI agent developed as a penetration testing tool – a threat actor based in China reportedly launched a hacking campaign using a similar tool with comparable functionalities.

ReaperAI was capable of independently conducting reconnaissance tasks and executing exploits without human intervention as part of its penetration testing capabilities. PwC’s report warned that the continued adoption of AI by adversaries is likely to lead to a surge in both the volume and complexity of threats, originating from a broader range of threat actors.

PwC underscored that while AI poses challenges, organizations can leverage AI tools to bolster their defense mechanisms against cyber threats. The firm highlighted that AI offers defenders an opportunity to enhance detection speed, automate containment measures, and make intelligence-driven decisions on a large scale.

To stay ahead of evolving threats, PwC recommended investing in AI-enhanced defense systems, integrating frameworks into threat analysis processes, and preparing for post-quantum security measures.