Microsoft Copilot Deployments Delayed Over Security Concerns

A cluster of July 2026 stories highlights a sharp rise in AI-driven risks alongside active exploitation and high-impact malware campaigns. Key themes: enterprises and security leaders are delaying AI assistant rollouts and flagging governance gaps as attackers use AI to improve ransomware, target selection (Dolphin X), and automate exploit development; new and evolving threats include TrickBot DNS-based C2, HollowGraph using Microsoft 365 calendars for covert C2, JadePuffer ransomware targeting AI model artifacts, and macOS/Windows stealers. Government and vendor responses include urgent CISA/