Michal Braverman-Blumenstyk.

Tech TLV
"If the cybercrime industry were a country, it would rank as the third-largest economy in the world"

Michal Braverman-Blumenstyk, CVP at Microsoft, Managing Director of Microsoft Israel R&D Center and CTO of Microsoft Security, added at the Tech TLV conference: "Over the past year, we’ve seen an increase in state-sponsored attacks, which began during the war in Ukraine. In Israel, the impact has been evident as well. Since the war’s outbreak, Iranian cyberattacks have increased fivefold."

"Nearly thirty years ago, I was pursuing a PhD in computer science at Columbia University. Back then, it wasn’t even called Generative AI—it was referred to as Natural Language Processing. The work was very theoretical, and in hindsight, we weren’t on the right track, partly because we lacked the necessary computing capabilities. To my parents’ disappointment, I didn’t complete my PhD. Instead, I transitioned into the private sector. Everything happening in the field today feels like coming full circle to me—moving from theory to practice. I never expected this field to evolve so rapidly, bringing immense productivity and incredible innovations to the world," said Michal Braverman-Blumenstyk, CVP at Microsoft, Managing Director of Microsoft Israel R&D Center and CTO of Microsoft Security, speaking the Tech TLV conference, organized by Calcalist and LeumiTech
And now you’re at the forefront of the revolution—not a bad consolation prize.
"Indeed. At Microsoft today, we’re deeply engaged in this field, and it plays a central role not just in cyber but across multiple domains. Gen AI is the most significant technological revolution we’ll experience in our lifetimes."
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כנס TECH TLV - מיכל ברוורמן בלומנשטיק מנכ"לית מיקרוסופט ישראל מחקר ופיתוח
כנס TECH TLV - מיכל ברוורמן בלומנשטיק מנכ"לית מיקרוסופט ישראל מחקר ופיתוח
Michal Braverman-Blumenstyk.
(Photo: Kobi Kuenkas)
Before diving deeper into artificial intelligence, let’s first discuss the current state of global cyber.
"Cyber entities are constantly evolving, utilizing the most advanced technologies. The attackers now consist of large organizations—these are no longer groups of kids in hoodies. There are many players, both private and state-level. If the cybercrime industry were a country, it would rank as the third-largest economy in the world, behind only the U.S. and China. The damages, estimated at $8 trillion, create what I call an 'anti-economy.' It’s a staggering and growing figure.
"It’s also important to note that over the past year, we’ve seen an increase in state-sponsored attacks, which began during the war in Ukraine. In Israel, the impact has been evident as well. Since the war’s outbreak, Iranian cyberattacks have increased fivefold compared to their frequency beforehand."
Are the attacks primarily targeting critical infrastructure, or are they aimed at businesses?
"The attackers target everything, including critical infrastructure, but their success is limited. And it’s not just Iran; we’re also seeing activity from China, North Korea, and Russia. In 2024, over 50% of the world’s population went to the polls, and elections are always a major target for cyberattacks."
How does generative AI tie into the world of cyber?
"Developments in AI impact cyber from both directions. Attackers attempt to exploit AI systems, but on the defensive side, AI enhances tools to counter these threats. First, GenAI can make systems more efficient. Second, AI security itself is becoming a critical area as we see rapid developments in large language models (LLMs), which require equally advanced security solutions. Third, we’re witnessing AI-on-AI attacks—for example, deep phishing or 'super phishing,' where AI generates highly sophisticated phishing attempts. The only way to combat such threats is also through AI."
What role does Israel play as a cyber powerhouse, particularly as it aspires to become a leader in artificial intelligence? How does this reflect at Microsoft Israel?
"Microsoft is heavily invested in Israel, not just in cyber but across artificial intelligence. Nearly 80% of our teams are focused on AI. Over the past year, we’ve grown our workforce by more than 10%, and we still have many open positions."
And how is Israel positioned in the global AI race?
"The global AI market is expected to surpass $20 trillion by 2030, accounting for 3.5% of global GDP. Israel has the potential to be a significant player. Just as we achieved global leadership in cyber, we can replicate that success in AI. We have the talent, the expertise in security units, and a thriving startup ecosystem. However, we must invest in education to realize this potential.
"We have all the ingredients for success, but it requires effort. The high-tech sector has a critical role to play, particularly in education. For example, we invest heavily in training tech professionals and collaborate with the Ministry of Education to train teachers and students. On a national level, it’s essential to establish a strategic plan to fully leverage Israel’s AI potential."