Capital markets have always operated on the basis of risk and return. But in recent years, risk factors have begun to grow at an alarming rate. From AI disinformation campaigns designed to drive down share prices to algorithmic manipulation that triggers collection, public companies are now facing real threats that were unimaginable a decade ago.

In the case of pharmaceutical giant Eli Lilly, a fake tweet from an imposter's account announced that insulin would now be available for free. Through the viral spread of chicken and social media, the false story wiped out 4.5 percent of the company's stock value within hours. Although the company subsequently came out to clarify, the damage to investor confidence and market perception had already been done. Another classic case is GameStop, where the online community's concerted action drove up the company's stock price, leaving institutional investors facing billions of dollars in losses.

Yehuda Leibler, president and CTO of capital market intelligence firm Arx, said, "Today's cybersecurity is not just about protecting servers or data centers, it's more about maintaining trust systems. Whether it's a disinformation campaign against a company's reputation or the hijacking of a ticker symbol for manipulative purposes, the attack surface for listed companies is expanding exponentially."

However, the good news is that with the help of AI tools, listed companies have finally gained the power to fight back and are expected to compete positively with malicious activities.

The AI threat in capital markets

The Eli Lilly and GameStop incidents reflect a growing trend that malicious actors are using AI, social media, and other digital tools to manipulate market dynamics and, in some cases, actually trigger market crashes. As capital markets collapse, the economy often suffers significantly, with devastating consequences for businesses and individuals.

Another particularly disturbing trend is what Leibler refers to as ticker hijacking. In this type of attack, malicious actors post numerous posts on social media platforms, using the ticker symbol of a legitimate business to lure users into committing fraud schemes or spreading disinformation. Sometimes these activities artificially inflate the price of a particular stock; In some cases, it will undermine people's trust in the corporate brand, resulting in reputational and financial damage.

Experts around the world have also noticed the huge changes that the AI wave has brought to the market. Gray Emmanuel, a shareholder in Greenberg Traurig's capital markets practice and an expert on corporate securities, said, "The goal of securities law is to ensure that markets are fair and just. However, we are currently witnessing this balance being disrupted, as AI is increasingly impacting the supply and demand dynamics of traditional markets. Both listed companies and regulators should seriously consider whether there are tools available to detect potential AI-driven market manipulation in order to develop safeguards and plans to address different types of threats."

The value of AI in the capital markets

While industries are actively discussing the value of AI technology, publicly traded companies investing in AI security tools are already seeing real results in using AI to protect their critical assets. Unlike traditional cybersecurity measures, which typically respond to vulnerabilities after they emerge, AI solutions proactively monitor and analyze large amounts of data in real time.

Arx, for example, uses AI to detect unusual patterns in market activity and social media sentiment. In one case, the company spotted signs of a hostile takeover in digital form before filing with the Securities and Exchange Commission (SEC). By analyzing trends and trading anomalies on social platforms, it can alert affected companies and help them intervene to mitigate threats before they escalate.

In addition to risk prevention, these AI tools help optimize investor relations, financing, and business growth, while closing critical information gaps. Rotem Gantz, CEO of Arx, said: "For public companies, it is no longer just the core business that needs to be managed, but a new additional product - company stock. Like any other product, stocks need a combination of cyber protection, data-based product management, and market analytics to succeed. And it turns out that with the rapid pace of change in today's capital markets, most public companies, with the exception of industry leaders like Apple and Berkshire Hathaway, are ill-equipped to manage this new business."

Call on listed companies to take action

As the lines between AI, cybersecurity, go-to-market strategy, and corporate reputation continue to blur, public companies must revisit and design their approach to risk management. Future risks will be less about IT systems and more about valuation, shareholder trust and long-term growth.

Gantz concludes, "Capital markets have become the new battleground. But with the right tools and strategies, businesses can protect themselves and have real opportunities to grow. And the key to mastering the situation is recognizing that as the threat evolves, the solutions must evolve with it."