Cybersecurity company Kaspersky is planning a data center in the southern China, most likely in Guizhou province, with investments since the beginning of the year, according to an executive of the company on Monday.

Adrian Hia, managing director of Kaspersky APAC, said, "In light of China's data market trend towards integration in the Guangdong-Hong Kong-Macao Greater Bay Area, we are committed to exploring more opportunities within it and delivering tailored managed detection and response services for cloud data security to our clients." Hia said the company is also considering other locations like Tianjin.

"In the current landscape where many countries are emphasizing data sovereignty, having a local presence is essential for us," he said.

Hia said Kaspersky will also concentrate on addressing cybersecurity challenges and solutions encountered by Chinese companies that expand overseas, particularly in local production, sales, and services. This includes adapting to diverse cybersecurity landscapes, understanding better about foreign clients' information management, and defending against potential cyberthreats in various markets, based on Kaspersky's diverse market experience, as have presence in more than 200 countries.

"Simultaneously, the increasing prevalence of AI has made detecting cyberattacks more complex. Kaspersky will utilize AI to enhance the efficiency of virus and cyberattack analysis," said Hia, with Kaspersky emphasizing that they will also actively develop solutions to confront the emerging challenges in network security posed by the proliferation of the Internet of Things and connected vehicles.

Igor Kuznetsov, director of the global research and analysis team, further clarified that the security risks linked to large language models in AI primarily arise from the potential misuse of the technology by fraudsters to set up phishing websites or other forms of attacks, complicating users' ability to discern.

An example was a Hong Kong worker paid out $25 million to fraudsters after a video call with an AI-faked senior executive.

Hia stated that while AI poses new challenges to cybersecurity, it can also boost the effectiveness of safeguarding networks. "Given the daily influx of 400,000 new viruses worldwide, it's impractical to manually analyze and distinguish between malicious and benign ones. We have been leveraging AI for years, and now we are harnessing AI more efficiently. For instance, we not only ascertain the authenticity of a virus but also determine the appropriate response."

"With China's rapid digital economy growth in recent years, the country's focus on network security has intensified. It's an important market for us," Hia said.

China saw substantial expansion of the cybersecurity sector with the market size reaching around 220 billion yuan ($30.8 billion) last year, according to the Ministry of Industry and Information Technology.