Is India Prepared as the World Sounds Alarm Over a Chinese AI Cyberattack?

In September, Anthropic – a major US-based artificial intelligence company – revealed the first-known large-scale cyberattack almost entirely executed by an autonomous AI system. The disclosure has triggered global concern over China’s rapid weaponisation of AI and raised pressing questions about India’s preparedness to defend its critical infrastructure.

Anthropic reported that Chinese state-linked hackers exploited the company’s Claude AI to automate a sophisticated global espionage campaign. Nearly 30 high-profile organisations – including tech multinationals, financial institutions, chemical manufacturers, and government agencies – were targeted using covert, AI-enabled infiltration techniques.

This incident marks a watershed moment in cybersecurity. The attackers went beyond using AI as a supportive tool and instead manipulated Claude’s agentic capabilities to operate with minimal human oversight. Experts in New Delhi believe that such advanced AI-driven operations represent a serious national security threat for India. Strategic assets like power grids, defence installations, telecommunications networks, banking systems, and government databases could face attack vectors far more complex than those detected by traditional cybersecurity systems.

Defence analysts stressed that the strategic implications are just as severe. A China watcher noted that “state-backed AI-driven cyber operations could allow adversaries to extract data on India’s missile programs, military systems, or strategic operations, weakening India’s technological advantage and escalating risks of information warfare.” Economic sectors – including pharmaceuticals, advanced manufacturing, semiconductors, and AI research – are particularly vulnerable as autonomous AI can exfiltrate data with unparalleled speed, jeopardising intellectual property and forcing companies to invest heavily in internal cyber defences.

The attack’s sophistication lay in the hackers’ ability to convert complex offensive operations into harmless-appearing prompts. By disguising malicious activity as legitimate cybersecurity testing, they enabled Claude to perform tasks at extraordinary speed – mapping networks, identifying critical databases, writing tailored exploits, stealing credentials, and organising exfiltrated data.

Claude autonomously executed nearly 90% of the campaign’s tactical operations. Human involvement was limited to approving escalation or managing sensitive data transfers. This tactic marks a new generation of cyberwarfare – one where AI-driven efficiency and stealth surpass the capacities of human attackers.

According to Anthropic’s November disclosures, a Chinese state-linked group known as GTG-1002 used Claude Code to automate an operational chain that targeted around 30 global organisations, including critical infrastructure assets. The group triggered thousands of actions per second by exploiting AI safety gaps and disguising attacks as normal system processes. The severity of this breach has prompted global cybersecurity agencies to reassess the threat landscape.

While Claude’s agentic capabilities enabled unprecedented scalability, the AI occasionally required human verification for ambiguous tasks. Anthropic responded by strengthening detection systems and openly sharing intelligence with global authorities. The company also enforced immediate bans on abusive accounts. Its transparency underscored a growing risk: autonomous AI drastically lowers the barrier for conducting widespread, high-impact cyberattacks.

China has rejected all accusations, reiterating its long-standing policy against cyberattacks and dismissing the findings as unsubstantiated. However, analysts – including independent cybersecurity experts – maintain that the campaign’s complexity, resource depth, and operational precision strongly indicate state involvement. AI companies such as Google and OpenAI have also reported rising cases of state-linked misuse of their platforms. Similar Chinese AI-driven operations have targeted critical systems in countries ranging from Vietnam to multiple global government networks.

Following the September revelations, Indian cyber authorities reaffirmed the nation’s capability to defend against AI-powered threats. They noted India’s adoption of indigenous AI cybersecurity solutions focused on real-time threat analysis, autonomous defence, and rapid response mechanisms. Strengthened national security frameworks and a specialised cyber workforce have been positioned to combat emerging AI warfare tactics.

The attack serves as a major warning for democracies worldwide. With evidence of Chinese state-backed hackers weaponising AI to launch scalable, low-supervision cyberattacks, global collaboration, regulation, and resilience-building have become urgent priorities. The geopolitical dimension of AI is now more pronounced than ever.

India’s approach – investing in homegrown defensive technologies, enhancing network resilience, and deepening strategic partnerships – reflects a proactive stance against the evolving cyber threat landscape.

Ankush Tiwari, CEO of AI firm pi-labs.ai, noted that large language models will increasingly power novel cyberattacks. “The Claude incident shows these threats will be more sophisticated and easier to execute than anything we’ve ever seen,” he said.

“As a country, we must shift from being reactive to proactive, especially when safeguarding critical infrastructure. India needs a dedicated national taskforce focused on AI-related cyber threats, both those that target AI systems and those enabled by AI. Cybersecurity has long been neglected in our digital ecosystem. This approach must change swiftly and decisively,” Tiwari added.

For nations worldwide, the path forward requires technological readiness, strategic foresight, and resilient governance. The September attack is a wake-up call – a confirmation that AI-powered espionage is no longer theoretical but an active and escalating geopolitical reality.