‘The World Is Not Ready’: Booz Allen CEO Warns of Escalating AI Cybersecurity Risks

Growing concerns that China could overtake the United States in the global race for artificial intelligence dominance may have far-reaching consequences for America’s economy and national security, according to a senior technology executive.

Those concerns were laid out by Horacio Rozanski, Chief Executive Officer of global technology firm Booz Allen Hamilton, during a recent appearance on The Washington Times’ “Threat Status” podcast, PulseNets learned.

Speaking from the 2025 Reagan National Defense Forum in California, Rozanski detailed the evolving threats posed by advanced artificial intelligence, particularly as the technology becomes more accessible to hostile cyber actors. He also addressed the intensifying U.S.–China competition for AI leadership, stressing that the outcome will shape geopolitical influence for decades.

“This is a race, and one country is ultimately going to come out on top,” Rozanski said.

He outlined three decisive factors shaping the contest. “First is who builds the strongest technology stack and the most capable models. Second is who drives real-world adoption, because technology that isn’t adopted has no impact. And third is who applies AI most intelligently to national security,” he explained.

“All three dimensions matter, and Americans need to be aligned and deliberate about ensuring the U.S. wins on every front,” Rozanski added, noting that Booz Allen Hamilton is currently the largest provider of AI and cybersecurity services to the U.S. federal government.

His remarks come amid renewed efforts by the Trump administration to reduce regulatory barriers for U.S.-based AI companies, as Washington weighs the technology’s potential to either strengthen or destabilize the economy, culture, and society.

In July, President Donald Trump unveiled a federal AI action plan titled “Winning the Race,” aimed at accelerating innovation while safeguarding national interests.

Rozanski told PulseNets that the administration’s approach shows an encouraging emphasis on security alongside adoption. “If people don’t trust these AI models—if they believe they can be corrupted or behave unpredictably—they simply won’t use them,” he said. “And if we don’t use them, we will fall behind.”

Beyond geopolitical competition, the Booz Allen CEO warned that AI is already being weaponized in cyberspace. “We are seeing AI used by bad actors to penetrate networks, steal sensitive data, and deploy ransomware,” he said. “This is not theoretical. It’s happening right now.”

According to Rozanski, the scale of risk is unprecedented. “The level of power and danger we’re dealing with is something the world is not prepared for,” he cautioned.

Cybersecurity experts have echoed similar warnings, noting that AI has become a force multiplier for cybercrime. In ransomware attacks, for example, AI tools have enabled criminals to generate convincing deepfake videos of company executives and rapidly mutate malware to evade detection by proprietary security systems.

Some of these cyber operations are believed to originate in China, with alleged links to the Chinese Communist Party and state intelligence agencies.

U.S.-based AI firm Anthropic recently disclosed that it disrupted a coordinated influence and cyber operation that used its Claude AI platform. The campaign targeted more than 30 organizations worldwide, including technology firms, financial institutions, chemical manufacturers, and government agencies. Anthropic reported with “high confidence” that the operation was backed by a Chinese state-sponsored group.

Rozanski said such activities are likely to intensify, particularly as China expands its AI ambitions into space.

He warned that future AI-enabled attacks could target space-based infrastructure, posing a direct threat to Western GPS systems and, by extension, the U.S. economy.

“Virtually every part of the economy depends on space, and national security certainly does,” Rozanski explained. “Take something as simple as an ATM—every one of them relies on GPS timing from satellites. If that timing signal is disrupted, the machine can’t function properly. Suddenly, the banking system itself is at risk.”

On the broader question of who is currently leading the AI race, Rozanski acknowledged that the United States still holds an edge. However, he pointed to China’s aggressive investments as a potential turning point.

“Right now, the U.S. is ahead,” he said. “But China is developing a national data center in space—an AI constellation designed to perform computing operations beyond Earth, which offers advantages in energy use and heat management.”

Other analysts note that China’s initiative, known as the Three-Body Computing Constellation, remains under development but could become operational by late 2026. The planned network of roughly 2,800 satellites is projected to deliver processing power of up to one quintillion operations per second.

Beijing has significantly expanded its space footprint in recent years, deploying more than 1,300 satellites with additional launches planned. Security analysts warn that if the U.S. lags behind China in launch capacity and deployed space technology, the implications for national security could be severe.

Similar concerns were raised this week at the Space Force Association’s Spacepower 2025 conference in Orlando, Florida. Air Force Secretary Troy Meink said China has made rapid advances in launch capabilities and could soon surpass the United States.

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“The pace at which China and other adversaries are advancing is remarkable,” Meink said. “Just a few years ago, we were clearly dominant in launch, and now they are making massive strides to close that gap.”

As for Booz Allen Hamilton, Rozanski said the firm is deeply invested in the space domain. He highlighted that the company was the first to deploy an AI large language model aboard the International Space Station.

“This is the type of work we are focused on,” he said. “We are committed to ensuring the strength and resilience of our country. At the end of the day, it all comes down to technology.”