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The Cisco logo is on display at the Mobile World Congress in Barcelona, Spain, on February 26, 2024. 

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Enterprise technology titan Cisco Systems on Thursday unveiled a new security architecture product aimed at securing data centers, clouds, and other IT environments with the help of AI.

Called HyperShield, the product uses AI to protect applications, devices, and data across public and private data centers, clouds, and physical locations, according to a company press release.

HyperShield follows the company’s $28 billion acquisition of Splunk last year, a cybersecurity company competing with the likes of DataDog, Elastic, SolarWinds, and Dynatrace. Its launch also builds on Cisco’s partnership with Nvidia on managing and securing AI infrastructure.

This is Cisco’s big chance to prove itself as a serious AI player at a time when technology giants like Microsoft, Google, and Amazon are spending billions to become leaders in artificial intelligence.

“This is not a product, but a new architecture – the first version of something new,” Jeetu Patel, Cisco’s executive vice president and general manager of security and collaboration, told CNBC in an interview this week.

Other brands are also moving in a similar direction. Hewlett Packard Enterprise recently announced new large AI model integrations for its Aruba networking division, while Broadcom’s VMWare launched a tool to allow companies to use generative AI products in a privacy-secure way.

How it works

HyperShield serves as a “shield for security,” Patel said, explaining that it takes security directly to the things that need to be secured.

The technology acts like a “fabric,” rather than a “fence,” giving cyber workers better visibility of software vulnerabilities across applications, according to Patel.

The product has an autonomous segmentation feature aimed at helping businesses avoid vulnerabilities and breaches. It allows Cisco’s AI to divide a computer network into smaller parts to improve performance and security.

Another feature, called self-qualifying upgrades, lets organizations automate the process of testing and deploying upgrades.

Patel said organizations dealing with critical infrastructure — such as oil rigs, internet of things (IoT) devices, and MRI machines in hospitals — need to take particular care when upgrading their systems.

Designed with AI in mind

Patel said Cisco’s HyperShield technology was designed with a new world of digital AI assistants – like ChatGPT, Google Gemini, and other advanced tools – in mind.

“We’re moving from a world of scarcity to a world of abundance, with digital AI assistants for everything,” Patel told CNBC. “Those assistants live in data centres.”

Cisco CEO Chuck Robbins: $28 billion Splunk deal will be a significant financial growth driver

“So when you consider the increase in requirements that this places on the data centre, and how we build for that, there is a need to rearchitect, not build more of the same,” said Patel.

He noted that a security architecture like HyperShield hadn’t been built previously because much of the architectures across the industry were created in a time when modern-day applications and technologies like generative AI didn’t exist.

It currently takes roughly four days for a network vulnerability to be discovered before it’s exploited, and the time taken to patch it is even longer at an average 45 days, according to Patel.

He said that new technologies like AI and machine learning are needed to identify and patch vulnerabilities to be compressed from days to minutes.

“Previously you had to work on the assumption that a breach had happened, [and that] once someone was in, there was lateral movement that you had to identify before you could respond,” Patel told CNBC.

“We need to move to a position where we can predict and respond.”

Why it matters for investors

Cisco shares have underperformed the Nasdaq in the last 12 months, falling nearly 5% year-over-year while the tech-heavy index has jumped over 30%.

Over the past five years, it’s been an even worse investment relative to the broader sector. The stock is down 14% over that stretch, trailing the Nasdaq’s 95% gain.

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Cisco share price performance year-over-year, compared with the performance of the Nasdaq Composite over the same period.

Cisco has long been the world’s largest maker of computer networking equipment, like switches, modems, and routers. It’s been boosting its cybersecurity business to meet customer demands and fuel growth.

That’s where the company’s blockbuster acquisition of Splunk comes in: Splunk’s technology helps businesses monitor and analyze their data to minimize the risk of hacks and resolve technical issues faster.

As the public cloud has gobbled up more of Cisco’s traditional back-end business, the company has needed to find new and bigger revenue streams — with cybersecurity emerging as a key bet.

– CNBC’s Rohan Goswami and Jordan Novet contributed to this report

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Week in review: The Nasdaq’s worst week since April, three trades, and earnings

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Week in review: The Nasdaq's worst week since April, three trades, and earnings

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Too early to bet against AI trade, State Street suggests 

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Too early to bet against AI trade, State Street suggests 

Momentum and private assets: The trends driving ETFs to record inflows

State Street is reiterating its bullish stance on the artificial intelligence trade despite the Nasdaq’s worst week since April.

Chief Business Officer Anna Paglia said momentum stocks still have legs because investors are reluctant to step away from the growth story that’s driven gains all year.

“How would you not want to participate in the growth of AI technology? Everybody has been waiting for the cycle to change from growth to value. I don’t think it’s happening just yet because of the momentum,” Paglia told CNBC’s “ETF Edge” earlier this week. “I don’t think the rebalancing trade is going to happen until we see a signal from the market indicating a slowdown in these big trends.”

Paglia, who has spent 25 years in the exchange-traded funds industry, sees a higher likelihood that the space will cool off early next year.

“There will be much more focus about the diversification,” she said.

Her firm manages several ETFs with exposure to the technology sector, including the SPDR NYSE Technology ETF, which has gained 38% so far this year as of Friday’s close.

The fund, however, pulled back more than 4% over the past week as investors took profits in AI-linked names. The fund’s second top holding as of Friday’s close is Palantir Technologies, according to State Street’s website. Its stock tumbled more than 11% this week after the company’s earnings report on Monday.

Despite the decline, Paglia reaffirmed her bullish tech view in a statement to CNBC later in the week.

Meanwhile, Todd Rosenbluth suggests a rotation is already starting to grip the market. He points to a renewed appetite for health-care stocks.

“The Health Care Select Sector SPDR Fund… which has been out of favor for much of the year, started a return to favor in October,” the firm’s head of research said in the same interview. “Health care tends to be a more defensive sector, so we’re watching to see if people continue to gravitate towards that as a way of diversifying away from some of those sectors like technology.”

The Health Care Select Sector SPDR Fund, which has been underperforming technology sector this year, is up 5% since Oct. 1. It was also the second-best performing S&P 500 group this week.

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People with ADHD, autism, dyslexia say AI agents are helping them succeed at work

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People with ADHD, autism, dyslexia say AI agents are helping them succeed at work

Neurodiverse professionals may see unique benefits from artificial intelligence tools and agents, research suggests. With AI agent creation booming in 2025, people with conditions like ADHD, autism, dyslexia and more report a more level playing field in the workplace thanks to generative AI.

A recent study from the UK’s Department for Business and Trade found that neurodiverse workers were 25% more satisfied with AI assistants and were more likely to recommend the tool than neurotypical respondents.

“Standing up and walking around during a meeting means that I’m not taking notes, but now AI can come in and synthesize the entire meeting into a transcript and pick out the top-level themes,” said Tara DeZao, senior director of product marketing at enterprise low-code platform provider Pega. DeZao, who was diagnosed with ADHD as an adult, has combination-type ADHD, which includes both inattentive symptoms (time management and executive function issues) and hyperactive symptoms (increased movement).

“I’ve white-knuckled my way through the business world,” DeZao said. “But these tools help so much.”

AI tools in the workplace run the gamut and can have hyper-specific use cases, but solutions like note takers, schedule assistants and in-house communication support are common. Generative AI happens to be particularly adept at skills like communication, time management and executive functioning, creating a built-in benefit for neurodiverse workers who’ve previously had to find ways to fit in among a work culture not built with them in mind.

Because of the skills that neurodiverse individuals can bring to the workplace — hyperfocus, creativity, empathy and niche expertise, just to name a few — some research suggests that organizations prioritizing inclusivity in this space generate nearly one-fifth higher revenue.

AI ethics and neurodiverse workers

“Investing in ethical guardrails, like those that protect and aid neurodivergent workers, is not just the right thing to do,” said Kristi Boyd, an AI specialist with the SAS data ethics practice. “It’s a smart way to make good on your organization’s AI investments.”

Boyd referred to an SAS study which found that companies investing the most in AI governance and guardrails were 1.6 times more likely to see at least double ROI on their AI investments. But Boyd highlighted three risks that companies should be aware of when implementing AI tools with neurodiverse and other individuals in mind: competing needs, unconscious bias and inappropriate disclosure.

“Different neurodiverse conditions may have conflicting needs,” Boyd said. For example, while people with dyslexia may benefit from document readers, people with bipolar disorder or other mental health neurodivergences may benefit from AI-supported scheduling to make the most of productive periods. “By acknowledging these tensions upfront, organizations can create layered accommodations or offer choice-based frameworks that balance competing needs while promoting equity and inclusion,” she explained.

Regarding AI’s unconscious biases, algorithms can (and have been) unintentionally taught to associate neurodivergence with danger, disease or negativity, as outlined in Duke University research. And even today, neurodiversity can still be met with workplace discrimination, making it important for companies to provide safe ways to use these tools without having to unwillingly publicize any individual worker diagnosis.

‘Like somebody turned on the light’

As businesses take accountability for the impact of AI tools in the workplace, Boyd says it’s important to remember to include diverse voices at all stages, implement regular audits and establish safe ways for employees to anonymously report issues.

The work to make AI deployment more equitable, including for neurodivergent people, is just getting started. The nonprofit Humane Intelligence, which focuses on deploying AI for social good, released in early October its Bias Bounty Challenge, where participants can identify biases with the goal of building “more inclusive communication platforms — especially for users with cognitive differences, sensory sensitivities or alternative communication styles.”

For example, emotion AI (when AI identifies human emotions) can help people with difficulty identifying emotions make sense of their meeting partners on video conferencing platforms like Zoom. Still, this technology requires careful attention to bias by ensuring AI agents recognize diverse communication patterns fairly and accurately, rather than embedding harmful assumptions.

DeZao said her ADHD diagnosis felt like “somebody turned on the light in a very, very dark room.”

“One of the most difficult pieces of our hyper-connected, fast world is that we’re all expected to multitask. With my form of ADHD, it’s almost impossible to multitask,” she said.

DeZao says one of AI’s most helpful features is its ability to receive instructions and do its work while the human employee can remain focused on the task at hand. “If I’m working on something and then a new request comes in over Slack or Teams, it just completely knocks me off my thought process,” she said. “Being able to take that request and then outsource it real quick and have it worked on while I continue to work [on my original task] has been a godsend.”

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