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AI companies are quietly preparing for public backlash following a "catastrophe" they see as inevitable

 

AI companies are quietly preparing for public backlash following a "catastrophe" they see as inevitable

Behind the scenes, top executives at Anthropic, OpenAI, and other AI companies are drawing up scenarios for a wave of public and political outrage following an upcoming AI-related catastrophic event.

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These officials anticipate a large-scale event, most likely a cyberattack, that would disrupt access to financial services, the internet, and even electricity and water supplies.

The first serious harm caused by unsafe artificial intelligence in the real world would further alienate an already wary public. This includes figures like Anthropic CEO Dario Amode, OpenAI CEO Sam Altman, and President Trump, due to his reluctance to regulate the technology.

Scenario planning is a common practice in many companies and national security circles; the Pentagon has been conducting war games for decades. But what's different this time is that many senior researchers and industry executives believe a major incident is inevitable.

An OpenAI spokesperson said: "OpenAI conducts readiness exercises in which teams discuss and practice dealing with a range of possible scenarios. We do not treat these scenarios as inevitable, but rather their purpose is to help us prepare for a variety of circumstances."

According to these perceptions, a spiral of accusations will erupt whether a swarm of out-of-control agents escapes from an internal testing environment, or a malicious actor discovers unexpected ways to exploit available models.

A recent campaign targeting financial institutions in South Korea, including reported breaches at two banks, reveals the extent of the damage a single individual can inflict. A hacker from China allegedly used artificial intelligence tools based on models developed in China, including DeepSeek, to steal data from tens of thousands of bank customers.

According to cybersecurity firm CrowdStrike, the attacker used Claude Code to find places to sell the stolen data.

South Korean police launched a comprehensive investigation into the attacks on Tuesday, assigning 28 investigators across four teams from the Cyber Terrorism Investigation Unit, according to the Korea Herald. The Korea Times reported that the leaked data from Shinhan Bank included customer names, phone numbers, annual income, and loan limits, while Woori Bank and Nonghyup Bank detected attempted breaches but did not confirm any leaks.

Senior industry planners assume that Democrats, whose position has been strengthened after the midterm elections, will move quickly to curb artificial intelligence. But they will face significant challenges, according to these assessments.

An aging Congress, out of step with the AI revolution, may find itself unable to keep pace. Furthermore, the global economy is deeply intertwined with the AI infrastructure boom, and slowing it down could severely damage an already fragile economy.

Furthermore, there are numerous open-source, high-weight models that can be freely downloaded and used to cause harm. Most cybersecurity experts believe the only way to solve this problem is to counter unchecked AI with AI itself.

The planning includes Red Team tests of worst-case scenarios, and focuses primarily on a race against time to educate members of Congress.

Executives at these companies understand that the chances of any regulatory legislation being passed are currently nil. Nevertheless, they are seeking to influence the drafting of the legislation and policies that American leaders will resort to after the first catastrophic event.

Many industry insiders told Axios that they believe a major event will occur within the next six to twelve months.

Even with Democrats controlling both the House and Senate, companies see political polarization as the prevailing characteristic, even within the Democratic Party itself. Among the most extreme Democratic proposals are banning superintelligence or suspending the development of advanced artificial intelligence.

In contrast, other proposals enjoy bipartisan support and some acceptance within the industry itself, including requiring advanced AI systems to have an emergency kill switch. However, experts have questioned the feasibility of attempting to shut down all AI systems.

But in real crises, Washington can set aside its partisan differences. A Democratic aide cited the cooperation seen during the COVID-19 pandemic and the 2008 financial crisis as examples.

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