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Introduction

The advent of frontier AI has significantly widened the range of actors who can launch cyberattacks, extending beyond state actors with immense capabilities or organized professional cybercriminal rings. In its most critical advisory, CIAD-2026-0020, titled "Defending against frontier AI-driven cyber risks," which was released on April 26, 2026, the Indian Computer Emergency Response Team (CERT-In) officially stated that AI can now carry out autonomous cyber activities of unprecedented scale and speed. The advisory highlights that these frontier AI models can perform automated reconnaissance, phishing, malware creation, vulnerability identification, and social engineering with minimal human involvement, thus "lowering the barrier to orchestrating complex cyber attacks." The risks that such AI models pose are not restricted to state actors and corporate entities anymore and also extend to MSMEs, public organizations, and individuals.

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India’s Escalating Cybercrisis

The Indian digital economy has been developing at a very fast pace, but the same cannot be said about its cybersecurity. Having a base of over 850 million internet users and a digital payment sector that records a massive 22,495 crore in monthly transaction volumes, coupled with the fastest-growing cloud sector in the world, India continues to remain a lucrative prey for cybercriminals. There were over 265 million attempts reported in the last year, 2025, alone, where close to 46% of all incidents detected were in enterprises with fewer than 1,000 employees, a very grave reality for MSMEs. MHA confirmed there were 28.15 lakh reported cybercrime complaints in 2025 as compared to 2024, with a jump of 24%. In this worsening environment the advisory is a breakthrough in Indian cyber governance. Where previously advisories covered only conventional threats like phishing and malware, the new warning names frontier agentic AI systems as autonomous multipliers of threats, capable of conducting operations at scale and speed with significantly reduced human oversight.

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What is “Frontier AI” and why does it matter?

CERT-In’s decision to adopt the term "Frontier AI" is deliberate and meaningful. The advisory’s scope is a new category of agentic AI, which moves well beyond traditional chatbot-style AI, having the capacity to reason, plan, perform multiple actions in a single task autonomously, and carry out complicated tasks with minimal or no human guidance. CERT-In highlights that these tools now possess the capabilities that were "previously carried out by a coordinated team of skilled cybersecurity professionals." The advisory clearly flags the risk that these advanced models have the capability to generate malicious code, conduct network scans, probe systems for vulnerabilities, and even orchestrate intricate multi-stage cyberattacks in a single session. Their capacity to analyse a vast number of source code libraries to identify vulnerabilities, even unknown zero-day ones, and then develop proof-of-concept exploits at high speed. This means that the historical lead time to turn a vulnerability discovery into an exploit tool has reduced from weeks to just hours.

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Six Core Threat Vectors identified by CERT-In

1. AI-driven Automatic Zero-Day Discovery: AI-based solutions discover zero-day vulnerabilities and automatically create exploits in minutes, reducing the time taken by defenders.
2. AI-driven Autonomous Reconnaissance: AI-driven agents scan cloud infra, APIs, and enterprise networks and outline attack vectors.
3. AI-driven phishing & deepfakes: Multilingual, highly targeted phishing emails, deepfake audio, and deepfake voice/video calls bring sophistication to social engineering.
4. Deepfake Financial Fraud: AI creates deepfake executives for high-value money transfers. For example, reports have indicated crore-level fund loss cases in India.
5. AI-powered Autonomous Attack Chains: Advanced AI models are able to automatically perform multiple malicious stages like privilege escalation, lateral movement, data exfiltration, and data extraction.
6. Cascading failures of interconnected systems: A single AI-supported security breach can have catastrophic domino effects on connected digital systems and critical infrastructures.

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Why are MSMEs a target?

CERT-In’s warning is specifically targeted toward the weakness of the Indian MSMEs. Contributing almost 30% to India's GDP and employing over 110 million individuals, most MSMEs have failed to adequately prepare themselves against contemporary cyber threats. While a large corporation would have a full-time cybersecurity team, a security operation centre, and frequent vulnerability assessments, the majority of MSMEs lack such infrastructure due to budget constraints, out-of-date software, etc. This lack of security has proved to be quite disadvantageous for smaller businesses, as India was identified as one of the top global targets for cyberattacks, where approximately 46% of the total breaches worldwide targeted organizations having fewer than 1000 employees. The advisory claims that frontier AI systems have significantly increased the threats, for the skills necessary to carry out advanced cyberattacks have dramatically decreased. Ransomware, phishing and data exfiltration can be executed by even unsophisticated attackers. The aftermath could result in critical financial, operational, and compliance impact on these MSMEs.

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The Global Context

These developments seem to validate CERT-In's warning about threats posed by frontier AI. In its 2026 State of Cybersecurity Report, ISACA listed AI-related threats as the top concern of cybersecurity professionals; 61% of those surveyed reported generative AI/large language models as the top technology trend impacting cyber risk. Worryingly, in 2026 only 7% were confident in their organizations' defenses against ransomware. Check Point Software's Cyber Security Report 2026 corroborates this; in 2025 the report stated that in a single year, the trend of combined social engineering-based campaigns with automated operational execution has risen considerably. In all phases of the lifecycle of a cyberattack reconnaissance, social engineering, and tactical decision-making AI is being applied. KPMG is warning of deepfake-enabled fraud now "spreading at a faster rate than that experienced at the beginning of the phishing era, which is currently still the leading type of attack in the world."

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CERT-In Recommendations

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For Large Organisations:

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1. The use of security monitoring, threat detection, and log analysis should be increased.
2. DDoS protection systems and multi-factor authentication (MFA) should be implemented on all internet-facing devices and assets.
3. Critical security patches should be installed within 24 hours of release.
4. Old VPN and remote-access infrastructure should be updated or replaced.
5. AI-driven cyber drills and incident response simulations should be regularly performed.

‍For MSMEs:

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1. Software and security updates should be automatically enabled on all devices and systems.
2. MFA should be enabled on organisational accounts and sensitive platforms.
3. MSMEs should utilize MSSPs for specialized support and monitoring.
4. Detailed inventories of IT assets and system logs should be kept for fast incident response.
5. Staff should be educated about identifying AI-generated phishing, deepfakes, and scams.

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For Individuals:

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• Independent communication channels should be used to verify any dubious message or money request.
• Software from unverified sources or unauthorised channels should not be downloaded.
• The use of strong and unique passwords along with MFA wherever possible should be enforced.

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From Advisory to Action

The May 2026 cybersecurity road map released by CERT-In signals a departure from identification of threats to enabling operations against frontier AI-led cyber threat landscapes. This initiative builds on their April advice and delineates a clearly articulated three-phase roadmap comprising immediate cyber readiness, AI governance controls, and deep integration of AI-driven defenses. It also provides for the establishment of a focused AI Cyber Defense Center and various multisector governance provisions. A prominent area is the increased threat of impersonation via deepfakes, and companies are encouraged to institute executive verification procedures prior to approving high-value transactions. The framework also emphasizes the establishment of an AI asset register requiring formal accounting and governance of all AI systems utilized in an enterprise. Meanwhile, CERT-In also recognizes the twin-use nature of frontier AI: for every threat, the same technology can bolster security with automated threat detection, phishing, and log analysis in real time.  However, the deployment of state-of-the-art defenses is uneven, especially with MSMEs, where there isn’t the requisite domain expertise and funding for this infrastructure. Accordingly, the road map puts the emphasis on immediate and stronger cyber hygiene, compulsory incident reporting, enhancing AI literacy, and proper implementation of the Digital Personal Data Protection Act for long-term security investment and resilience.

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Conclusion

The CERT-In advisory CIAD-2026-0020 signifies a vital acknowledgment of AI's transformational impact on the cybersecurity ecosystem. Capabilities formerly exclusive to elite state actors are being deployed by low-skilled users, leveraging state-of-the-art frontier AI tools. India’s MSMEs, enterprises, and digital citizens are experiencing a rapidly accelerating threat milieu. In this context, the CERT-In advisory and the ensuing blueprint can no longer be dismissed as ordinary government pronouncements but as critical operational imperatives. It is the country’s ability over the next few years to shore up its collective cyber resilience to the ever-increasing scale and sophistication of AI-powered attacks that will prove crucial.

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References:

1. https://www.cert-in.org.in/s2cMainServlet?pageid=PUBVLNOTES02&VLCODE=CIAD-2026-0020
2. https://www.zeebiz.com/technology/news-cert-in-flags-high-severity-ai-cyber-risks-amid-claude-mythos-concerns-394448
3. https://www.business-standard.com/technology/tech-news/cert-in-warning-ai-scams-frontier-models-mythos-gpt-5-5-what-it-means-126042800988_1.html
4. https://www.businesswire.com/news/home/20251020612551/en/
5. https://corporate.indiamart.com/2025/07/29/staying-ahead-of-cyber-threats/
6. https://kpmg.com/kpmg-us/content/dam/kpmg/pdf/2025/deepfakes-real-threat.pdf

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Introduction

National AVGC-XR stands for National Animation, Visual Effects, Gaming, Comics, and Extended Reality. On 21 Aug 2024 Shri Sanjay Jaju, Secretary, Ministry of Information and Broadcasting, Speaking at the 5th Global AVGC and Immersive Media Summit 2024,  announced that the National AVGC-XR Policy will be implemented soon. National AVGC-XR policy aims to facilitate investment, foster innovation, ensure skill development, protect intellectual property and help build world-class infrastructure. Additionally, Atul Kumar Tiwari, Secretary of Ministry of Skills and Entrepreneurship, said that the Centre's decision to revamp 1,000 ITIs is pivotal in aligning workforce skills with AVGC industry needs. He called for enhanced intellectual property rights to retain talent and content in India.

Key Highlights of National AVGC-XR Policy 

• The policy will be implemented in conjunction with the National AVGC-XR Mission to improve India's AVGC sectors through infrastructure development, skill enhancement, innovation, and regulatory support.
• The policy aims to improve India's international competitiveness in the AVGC industry, specifically by supporting the creation of unique intellectual properties (IPs) that can gain worldwide acclaim.
• The policy acknowledges the significance of adapting and converting content for various international viewers, which has become easier considering technological advancements.
• The government is dedicated to providing strong policies and financial backing to the AVGC industry, ensuring that India continues to be a worldwide leader in the sector.

Tech-driven trends in the AVGC-XR Sector promoting exponential growth

• Advancements in technology specifically when we talk about the Animation and VFX industry, emerging trends such as AR, VR, and real-time 3D technology, are driving the expansion of the metaverse, resulting in a rising need for fresh jobs and broadening uses beyond gaming into education, e-commerce, and entertainment. Moreover, the transition to cloud-oriented production processes and the increase in unique or original content on OTT platforms are improving cooperation and propelling industry growth. To drive expansion, global OTT leaders are commissioning more original content. This has increased the need for VFX, post-production, and animation services.
• Technological advancements in India's gaming industry, like cloud gaming, increased popularity of mobile gaming, the introduction of 5G and 6G, and recognition of e-gaming at national and international forums, are breaking down obstacles and fueling swift growth, positioning India as a key player in growing e-gaming sector worldwide. Furthermore, the integration of gamification and XR in education and training is generating immersive experiences that improve learning and skill building, contributing to the expansion of the AVGC-XR industry.
• The comics industry is being transformed by technological advancements like digital technology and self-publishing, which are increasing access and distribution through online platforms and social media. The rising popularity of graphic novels and the greater use of digital comics, particularly among young audiences with smartphones, are fueling substantial growth in the AVGC-XR industry.
• The use of AR, VR, and MR (Mixed Reality) technologies is rapidly growing due to tech-driven trends in Extended Reality (XR), transforming industries such as healthcare, education, and retail. The rising number of startups in this sector, boosted by higher venture capital funding, is speeding up the uptake of XR services, establishing it as a primary catalyst of innovation and expansion in various industries.

Final Words:

Just like the IT revolution, the Indian AVGC-XR industry along with technological trends and advancements has great potential. With the growth in various sectors within the AVGC industry, the right policy framework in place and government support, it will be forefront of India’s global standing in the AVGC sectoral growth including various Intellectual Property (IP), creations, and outsourcing services. The proposed AVGC-XR policy with a forward-thinking approach will drive the industry growth. Thus, a comprehensive integrated and collaborative approach is essential. Furthermore with rising trends in technological space including the use of AR, VR, cloud spaces, 6G and expansion of the OTT sector, the safe and secure use in terms of cybersecurity is encouraged to ultimately protect the interest of users and establish a safe secure cyber world driven by exponential growth in various sectors including AVGC. We’re at the cusp of a new era, where we’re looking at technological advancements not as a tool but as a way of life, hence safe and secure usage remains a top priority.

References: 

1. https://www.cii.in/PressreleasesDetail.aspx?enc=IkIXRoaDhS+jXtgjqb7UcbWSnaI7mgIS485nHsQEMbw
2. https://www.thehindu.com/sci-tech/technology/avgc-xr-policy-to-be-implemented-in-tandem-with-national-avgc-xr-mission-ib-secretary/article68550433.ece#:~:text=Speaking%20at%20the%20Fifth%20Global,competitiveness%20by%20fostering%20infrastructure%20development%2C
3. https://mib.gov.in/sites/default/files/Annexure%20C-AVGC-XR%20-%20Draft%20for%20National%20Policy_16th%20December%202022-AG%20EDIT.pdf
4. https://www.drishtiias.com/daily-updates/daily-news-analysis/potential-of-india-s-avgc-xr-sector

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Introduction

The integration of Artificial Intelligence into our daily workflows has compelled global policymakers to develop legislative frameworks to govern its impact efficiently. The question that we arrive at here is: While AI is undoubtedly transforming global economies, who governs the transformation? The EU AI Act was the first of its kind legislation to govern Artificial Intelligence, making the EU a pioneer in the emerging technology regulation space. This blog analyses the EU's Draft AI Rules and Code of Practice, exploring their implications for ethics, innovation, and governance.

Background: The Need for AI Regulation

AI adoption has been happening at a rapid pace and is projected to contribute  $15.7 trillion to the global economy by 2030. The AI market size is expected to grow by at least 120% year-over-year. Both of these statistics have been stated in arguments citing concrete examples of AI risks (e.g., bias in recruitment tools, misinformation spread through deepfakes). Unlike the U.S., which relies on sector-specific regulations, the EU proposes a unified framework to address AI's challenges comprehensively, especially with the vacuum that exists in the governance of emerging technologies such as AI. It should be noted that the GDPR or the General Data Protection Regulation has been a success with its global influence on data privacy laws and has started a domino effect for the creation of privacy regulations all over the world. This precedent emphasises the EU's proactive approach towards regulations which are population-centric. 

Overview of the Draft EU AI Rules

This Draft General Purpose AI Code of Practice details the AI rules for the AI Act rules and the providers of general-purpose AI models with systemic risks. The European AI Office facilitated the drawing up of the code, and was chaired by independent experts and involved nearly 1000 stakeholders and EU member state representatives and observers both European and international observers.

14th November 2024 marks the publishing of the first draft of the EU’s General-Purpose AI Code of Practice, established by the EU AI Act. As per Article 56 of the EU AI Act, the code outlines the rules that operationalise the requirements, set out for General-Purpose AI (GPAI) model under Article 53 and GPAI models with systemic risks under Article 55. The AI Act is legislation that finds its base in product safety and relies on setting harmonised standards in order to support compliance. These harmonised standards are essentially sets of operational rules that have been established by the European Standardisation bodies, such as the European Committee for Standardisation (CEN), the European Committee for Electrotechnical Standardisation (CENELEC) and the European Telecommunications Standards Institute. Industry experts, civil society and trade unions are translating the requirements set out by the EU sectoral legislation into the specific mandates set by the European Commission. The AI Act obligates the developers, deployers and users of AI on mandates for transparency, risk management and compliance mechanisms 

The Code of Practice for General Purpose AI

The most popular applications of GPAI include ChatGPT and other foundational models such as CoPilot from Microsoft, BERT  from Google, Llama from Meta AI and many others and they are under constant development and upgradation.  The 36-pages long draft Code of Practice for General Purpose AI is meant to serve as a roadmap for tech companies to comply with the AI Act and avoid paying penalties. It focuses on transparency, copyright compliance, risk assessment, and technical/governance risk mitigation as the core areas for the companies that are developing GPAIs. It also lays down guidelines that look to enable greater transparency on what goes into developing GPAIs. 

The Draft Code's provisions for risk assessment focus on preventing cyber attacks, large-scale discrimination, nuclear and misinformation risks, and the risk of the models acting autonomously without oversight. 

Policy Implications

The EU’s Draft AI Rules and Code of Practice represent a bold step in shaping the governance of general-purpose AI, positioning the EU as a global pioneer in responsible AI regulation. By prioritising harmonised standards, ethical safeguards, and risk mitigation, these rules aim to ensure AI benefits society while addressing its inherent risks. While the code is a welcome step, the compliance burdens on MSMEs and startups could hinder innovation, whereas, the voluntary nature of the Code raises concerns about accountability. Additionally, harmonising these ambitious standards with varying global frameworks, especially in regions like the U.S. and India, presents a significant challenge to achieving a cohesive global approach.

Conclusion

The EU’s initiative to regulate general-purpose AI aligns with its legacy of proactive governance, setting the stage for a transformative approach to balancing innovation with ethical accountability. However, challenges remain. Striking the right balance is crucial to avoid stifling innovation while ensuring robust enforcement and inclusivity for smaller players. Global collaboration is the next frontier. As the EU leads, the world must respond by building bridges between regional regulations and fostering a unified vision for AI governance. This demands active stakeholder engagement, adaptive frameworks, and a shared commitment to addressing emerging challenges in AI. The EU’s Draft AI Rules are not just about regulation, they are about leading a global conversation. 

References

• https://indianexpress.com/article/technology/artificial-intelligence/new-eu-ai-code-of-practice-draft-rules-9671152/ 
• https://digital-strategy.ec.europa.eu/en/policies/ai-code-practice 
• https://www.csis.org/analysis/eu-code-practice-general-purpose-ai-key-takeaways-first-draft#:~:text=Drafting%20of%20the%20Code%20of%20Practice%20is%20taking%20place%20under,the%20drafting%20of%20the%20code. 
• https://copyrightblog.kluweriplaw.com/2024/12/16/first-draft-of-the-general-purpose-ai-code-of-practice-has-been-released/