AI-powered tools are giving publicly traded companies the opportunity to fight against malicious ... [+] actors. (Photo Illustration by Budrul Chukrut/SOPA Images/LightRocket via Getty Images)SOPA Images/LightRocket via Getty ImagesCapital markets have always been defined by risks and rewards. But in recent years, these risks have increased at an alarming rate. From AI-powered disinformation campaigns designed to tank stock prices to algorithmic manipulations triggering sell-offs, public companies now face threats they couldn't have imagined a decade ago.Take the example of pharmaceutical giant Eli Lilly. A fake tweet from an impersonators account announced insulin was now free. Amplified by bots and viral social media sharing, the misinformation wiped 4.5% off the companys stock price within hours. Though the disinformation was corrected, the damage to both investor confidence and market perception had already been done. Another great example is the GameStop saga, where coordinated action by an online community led to massive stock price inflation, exposing institutional investors to billions in lossesCybersecurity today isnt just about protecting servers or data centers; its about safeguarding trust, said Yehuda Leibler, president and CTO of the capital markets intelligence firm Arx. Whether its a fake news campaign targeting a companys reputation or the hijacking of a ticker symbol for manipulative purposes, the attack surface has grown exponentially for publicly traded companies.The good news, however, is that with AI-powered tools, publicly traded companies now have an opportunity to fight back.AI-powered Threats In Capital MarketsThe Eli Lilly and GameStop incidents reflect a growing trend, where malicious actors use AI, social media and other digital tools to manipulate market dynamics, effectively crashing markets in some instances. And when capital markets collapse, theres often a telling effect on the economy, ushering in devastating consequences for both businesses and individuals.MORE FOR YOUAnother particularly troubling trend is what Leibler terms ticker hijacking. In these attacks, malicious actors flood social media platforms with posts using a legitimate companys ticker symbol like $AAPL to drive users toward fraudulent schemes or spread disinformation. Sometimes, these campaigns artificially inflate another stocks prices. Other times, they erode trust in the companys brand, creating reputational and financial fallout.Legal experts around the world are also noting the tectonic shifts that AI is causing in the market. The purpose of the securities law is to ensure a fair and equitable marketplace. However, we are currently witnessing a disruption of this balance as AI increasingly influences traditional market dynamics of supply and demand, said Gary Emmanuel, a shareholder at Greenberg Traurigs Capital Markets Practice whose expertise is in corporate securities. Both public companies and regulators should consider whether there are tools available that may be able to detect potential AI-driven market manipulation in order to develop both safeguards and plans for countering different types of threats, he added.The Value Of AI In Capital MarketsWhile theres much discussion on the value of AI across industries, publicly traded companies that invest in AI-powered security tools are seeing real results in using AI to protect their critical assets. Unlike traditional cybersecurity measures, which often react to breaches after they occur, AI-powered solutions proactively monitor and analyze vast amounts of data in real time.For instance, Arx uses AI to detect unusual patterns in market activity and social media sentiment. In one case, the firm identified signs of a digital-first hostile takeover before any SEC filings were made. By analyzing narrative shifts on social platforms alongside trading anomalies, it was able to alert the affected company and help them take steps to mitigate the threat before it escalated.Beyond defending against risks, these AI-powered tools can also help to optimize investor relations, capital raising and growth, all while closing critical information gaps. When you go public, you dont just manage your core business anymore, noted Rotem Gantz, CEO of Arx. Youre managing an additional product your stock. And like any product, it needs cyber protection, data-based product management and market analytics to succeed. But public companies that arent Apple or Berkshire Hathaway arent exactly equipped to manage a completely new operation this is uniquely true given the speed things move in todays capital markets.A Call to Action for Public CompaniesAs the lines between AI, cybersecurity, market strategy and corporate reputation continue to blur, public companies must rethink their approach to managing risks. The stakes are no longer confined to IT systems they encompass valuation, shareholder trust and long-term growth.Capital markets have become a battleground, said Gantz. But with the right tools and strategies, companies can protect themselves and get a real chance to thrive. The key is recognizing that the threats have evolved, and so must the solutions.