Why did Darktrace shares jump 10% today?

Darktrace PLC (LSE: DARK) saw its share price rise by 10% today, following the announcement of new Generative AI tools earlier in the week. These tools aim to enhance data protection against attacks by malicious actors using generative AI tools such as ChatGPT. The share price has increased by 18% this week.

Recognising the escalating use of generative AI tools, Darktrace has launched new risk and compliance models to cater to its 8,400 global customers. These models specifically address the growing concerns regarding intellectual property (IP) loss and data leakage.

To ensure better monitoring and response capabilities concerning generative AI and large language model tools, Darktrace’s DETECT and RESPOND solutions have been upgraded.

An interesting observation made by Darktrace’s AI systems is that 74% of active customer deployments involve employees using generative AI tools. In a notable incident, Darktrace successfully detected and prevented the upload of over 1GB of data to a generative AI tool at one of its customers in May 2023.

While generative AI tools hold the promise of increased productivity and creativity, Chief Information Security Officers (CISOs) face the challenge of striking a balance between their benefits and potential risks. Government agencies, such as the UK’s National Cyber Security Centre, have provided guidance on managing risks associated with the use of generative AI tools and other large language models in the workplace.

Regulatory bodies across different jurisdictions and sectors are expected to offer guidance to companies, aiming to facilitate effective and safe utilisation of AI while minimising potential dangers.

Allan Jacobson, the VP and Head of Information Technology at Orion Office REIT, stressed the importance of employing technology and establishing clear guardrails to manage risks and leverage the benefits provided by generative AI tools.

Poppy Gustafsson, the CEO of Darktrace, highlighted the significance of staying one step ahead of attackers in the realm of defensive AI tools versus offensive AI attacks. Darktrace’s focus lies in delivering personalised security solutions aligned with the compliance policies of each organisation.

Darktrace’s latest AI tools have been introduced to safeguard customers from potential attacks facilitated through generative AI tools. The implementation of risk and compliance models for DETECT and RESPOND enhances monitoring and response capabilities, which is crucial given that a large percentage of Darktrace’s customers actively use such tools.