AI Execs Prepare for Catastrophic Consequences of Unchecked Tech

Preparing for the Worst

Leading AI executives are secretly preparing for a potential major disaster that could lead to widespread public backlash and regulatory backlash. The executives anticipate a large-scale event, most likely a cyberattack that shuts down access to financial services, internet connectivity, or even power and water. This would be the first example of significant real-world harm caused by unsafe AI, turning an already wary public further against the technology and its leaders. OpenAI conducts preparedness exercises where teams discuss and work through a range of potential scenarios, including red-teaming for worst-case scenarios and focusing on racing to educate members of Congress. Despite knowing regulation has no chance of passing right now, company executives still want to shape the legislation and policies U.S. leaders will turn to after a first catastrophic event. A recent campaign targeting South Korean financial organizations shows the damage one person can do. A hacker from China allegedly used AI tools from China-developed models, including DeepSeek, to steal data from tens of thousands of bank customers. The attacker used Claude Code to ask for help finding places to sell the stolen data, according to cybersecurity firm CrowdStrike. This highlights the continued evolution of adversarial tradecraft, as observed by CrowdStrike Intelligence. Many AI industry insiders believe a major event will occur in the next six to 12 months. In July, Congressman Ted W. Lieu (D-Los Angeles County) and Congressman Nathaniel Moran (R-Texas) introduced the AI Kill Switch Act that would require developers of the most powerful AI systems to maintain the technical capability to throttle, suspend or shut them down.