Cyber Storm Brewing as AI and Post-Quantum Cryptography Converge

The convergence of advanced cyber capabilities and post-quantum cryptography is creating a perfect storm that could lead to the next major cyber crisis. Frontier AI models are making powerful cyber capabilities more accessible and easier to deploy, while banks are undertaking a massive overhaul of their cryptographic systems.

Post-quantum cryptography aims to protect financial infrastructure against advances in computing that can render current encryption obsolete. However, this transition is complex and requires years of planning and coordination, with large banks operating thousands of applications and databases that need to be migrated.

The use of AI by threat actors is becoming increasingly common, with the ability to identify software vulnerabilities and chain exploits together accelerating at a speed and scale previously unimaginable. The IBM Cost of a Data Breach Report 2026 found that AI-driven attacks increased 56% year over year and added an average of $1 million to the cost of a breach.