AI Raises OT Data Demands and Threats Faster Than Factory Networks Can Keep Up: Felipe Sabino Costa of Moxa on Security

Open on YouTube ↗
Overview

In this episode of Manufacturing Happy Hour, host Chris talks with Felipe Sabino Costa of Moxa about how artificial intelligence is changing operational technology (OT), the networks and systems that run factories, highways and other industrial processes. Costa's argument has two sides. AI pushes manufacturers to move far more data, far faster, over infrastructure that was never built for it. The same technology also gives attackers better tools. His position is that the traditional industrial approach of isolated networks and perimeter defenses is no longer enough. He believes manufacturers need layered security down to the edge of the process, recognized standards such as IEC 62443 and NIST, and partners who understand both networking and security.

18 min read

Why OT Data Matters Now

Chris opened with a basic question: why should manufacturers care about OT data at all? Costa said the industry is in the middle of a large change in how it works. OT data used to be mainly about logging and historical analysis. Today, in his words, it is "more like about predictive power, instant control, precision." He sees demands for greater precision and energy efficiency pushing plants away from reactive operation and toward predictive operation.

The shift he emphasized most is the timing of decisions. Historically, feedback came at the end of a process. A run would finish, information would flow back, and people would decide what to change. Now, Costa said, the system should recognize what is happening while the process is running and change decisions midway. He called this "way different" from how things were done in the past.

Old Infrastructure Meets AI-Driven Data Needs

Chris pointed out that the last time the show covered OT, AI was not really part of the discussion. Costa agreed that AI drives much of the new demand for faster, mid-process decisions. Whatever AI means in a given case, he said, the core idea is using data to do things that weren't done or couldn't be done before.

He named two main challenges in moving that data. The first is age and bandwidth. Many OT systems are 15 to 20 years old and were designed with very limited bandwidth. By his estimate, AI has been part of OT for only about five or six years, so these systems were not designed with it in mind. That leaves the question of how to make data usable for AI on very old infrastructure.

The second challenge is architecture. OT networks used to be standalone. Each factory did its own job and had no need to share information. Now plants need to send data to a cloud or a corporate data center so that more global, efficiency-oriented decisions can be made. That requires new kinds of connections. As a result, old systems are sending more data across more complex networks, which Costa said creates "a huge headache" for the people who have to make it work, himself included. He noted that the industry's term for the old isolated model is "air-gapped" networks, meaning systems that operate entirely on their own.

Bandwidth: Streaming 4K Over a Copper Line

To explain why bandwidth has become such a problem, Costa offered an analogy: it is like trying to stream 4K high-definition video over an old copper telephone line. The infrastructure is very old, and people are now trying to push high-definition images and video through it.

His first real-world example came from intelligent transportation systems (ITS), the cameras and related systems on highways that make travel safer and help the people using the data decide things like when to dispatch support. Costa said these systems have been adding more cameras, and higher-resolution ones, to photograph vehicles or stream live video. That greatly increases the amount of data each line has to carry. He described this as a current situation that Moxa has been working on with several customers.

His second example tied more directly to AI: processor manufacturing. He described it as a very precise process that has to be fast, secure and exact. Manufacturers are putting high-definition cameras at the very end of the process for image recognition and to improve parts of the system, for example better color control or higher precision. This used to be done differently. Costa's point was that there was previously no need for this level of image definition, but as AI adoption grows, he is seeing "data-hungry" applications that demand much more data.

Chris summarized the two cases. In transportation, the goal is safety, the method is more cameras, and the result is more data. In processor manufacturing, the goal is more visibility into a high-precision process, and that also creates more data. In both cases, bandwidth becomes the constraint.

Hardware Still Has to Survive the Environment

Costa added that bandwidth is only the technical side. Industrial applications also have specific requirements, and reliability is the main one. He gave the example of Nevada, where it is extremely hot outside, and of other states where it can be very cold. The devices supporting safety systems like the ones he described must keep running in those harsh conditions. That calls for ruggedized designs and wide operating temperature ranges. For AI adoption to help the industry move from the old model to the new one, he said, these specific demands have to be met, and that requires dedicated technology and hardware.

The Threat Landscape: Companies That Think They're Air-Gapped but Aren't

Moving to security, Chris asked about the current threat landscape for OT networks. Costa called it a "one million type of question" and focused on two major issues.

The first connects back to the air gap. Many companies still believe their plants are isolated, but Costa said they are not anymore. To be truly air-gapped, a system must have no way at all to send data out. If there is even one connection sending data to a cloud or to another factory, it is no longer air-gapped. Whether a plant has one such connection or thousands, a path exists.

That leads to the second issue: a need for what Costa called a second layer of defense close to the edge, meaning protection for the industrial devices themselves. He contrasted IT and OT. In his view, IT "was born with security," and its solutions were designed with it in mind. In industry 15 to 20 years ago, safety mattered but data security "was not really a thing." Now, for all the reasons discussed in the episode, security is extremely important too.

He then gave a figure: roughly 80% of global industry, "including us" (it was unclear whether he meant the U.S.), does not have these specific defense layers at the very edge. In his description, these organizations do have some defenses at the IT layer and some segmentation between automation networks and corporate networks, but "nearly zero protections close to the process itself." That, he said, is where work is needed.

Chris restated the number as about 80 to 85% of the industry and urged listeners to ask whether they are in the minority taking action or in the majority that is not doing enough. On the air gap, he added that some connection to the cloud has become nearly universal over the past decade. It is not true for every company, but it is likely true somewhere in most processes.

How AI Changes Attacks

Asked how AI has created new threats, Costa said attackers are using AI in many areas, just as everyone else is. Broadly, they use it to make attacks more sophisticated and more precise. In the same way that legitimate users rely on ChatGPT and similar tools to process large amounts of information and get insights, attackers combine information about vulnerabilities and industries. According to Costa, this lets them craft sophisticated attacks against OT systems with little or no real knowledge of those systems.

He described phishing as one of the most common attack types: a fake email that leads someone to click a link and compromise a device. Attackers are not necessarily doing new things, he said, but they are doing the old ones "faster and better."

Chris offered a parallel. When he uses ChatGPT and it learns more about him and his podcast, its responses become more tailored. A phishing attack aimed at getting a specific person to open a specific file can be refined the same way, so it looks more convincing than before. Costa agreed and called it one of several ways attackers are using AI. In the past, he said, you could scan an email and find typos or inconsistencies. That is now much harder, so organizations need additional layers of defense, "or even another AI," to check and verify messages.

Malware That Adapts Mid-Attack

When Chris asked for a more detailed example of increasingly sophisticated attacks, Costa connected it to the theme from earlier in the episode. Legitimate AI moves decision-making earlier, into the middle of a process, and attackers are following the same logic.

His example was port scanning. In the past, an attacker's scan looking for particular open ports was essentially binary. If a port wasn't open, the attacker moved on to something else or to another target. With AI, Costa said, the code can adapt "during the flight." As it scans and receives information, it can change its behavior in the middle of the attack. That makes attacks more efficient and, as he put it, "more dangerous if you will."

From Prevention Alone to Defense, Detection and Response

Costa's conclusion was that the old defensive approach is no longer sufficient on its own. He said he has been discussing this with customers. Prevention, meaning perimeter controls and defense-in-depth layers, remains important and should still be done, especially since most of the industry is not doing even that. But for more mature organizations, prevention alone is "not enough anymore," and "there is no silver bullet."

What he recommends instead is a combination: defense in depth plus detection and response, tailored to each organization's size and goals. That is why he talks with each customer to understand who they are and what they are trying to do before recommending a solution. Two frameworks, IEC 62443 and NIST, help tie all of this together.

For a product manufacturer like Moxa, Costa said, security is not only about how a product is built and what goes into it, although that is part of what IEC 62443 defines. It is also about what happens afterward. Does the manufacturer have people who can help a customer facing an incident? Is there a proper place to report vulnerabilities, which he described as flaws? He referred to a specialized response team that receives vulnerability reports and handles them on defined timelines. He summed this up as a shift toward a more "strategic" and combined approach to industrial security.

NIST: Connecting the Pieces

Before defining NIST, Costa again stressed that no single product, analysis or standard solves every problem. Different industries do different things and combine good practices as best they can. He said security strategy is moving toward something more sophisticated that includes resilience and defense in depth, and that frameworks like NIST and IEC 62443 help fit these pieces together.

He described NIST, the National Institute of Standards and Technology, as an organization that does many things. Among them, it maintains a framework that helps organizations understand the different phases of security and where and how to deploy it. NIST also publishes handbooks and special publications with more detailed guidance, including documents specific to industry. Organizations can adapt the broad framework using these specific documents. Costa called NIST the best-known framework among security professionals and said it helps organizations combine different steps and make sure they are progressing.

He explained that IEC 62443 originated in the U.S. as ISA-99 and was later adopted in Europe and other markets. He said it is now effectively a global framework.

IEC 62443 as a Nutrition Label

Chris asked Costa to explain an analogy he had mentioned before the recording. Costa, who said he loves food, compared IEC 62443 to the food industry, which he thought would make more sense to people outside security than references to NIST.

The analogy has three parts. First, a food production line can be certified for how it makes food. Similarly, IEC 62443 can certify the process a manufacturer uses to build its products. Second, historically it has been hard to know how secure one product was compared to another. Just as food has a nutrition label listing ingredients and proportions, there is also product-level certification. With it, a buyer can see the full "nutritional information" of a product: whether it has security and which security features it includes. Third, certification requires a response team, which Costa compared to a customer hotline. If someone finds a problem, there is a contact point in the company, and someone is responsible for handling the request. "I hope everybody's hungry right now," he joked.

Chris restated it with his breakfast cereal. A nutrition label says a product is nutritious, and a certification says a product is secure. Costa agreed and said this helps both sides. Manufacturers know what they should be doing, and buyers can be confident they are getting the security features they need.

What Sets IEC 62443 Apart

When Chris asked directly what IEC 62443 is and why manufacturers should pay attention to it, Costa described it as a standard, or handbook, that makes different recommendations for different audiences. In his view, that is what makes it unique. It gives guidance to product manufacturers like Moxa. It helps system integrators who assemble solutions. It also helps end customers know how to ask for security and what to ask for. By defining expectations for each role, it "closes the loop" so everyone knows what they must do to deliver a secure system.

Costa said this is why he sees IEC 62443 being adopted globally, and he noted that some people in industry will know it as ISA-99. For him, the most valuable feature is that certification is done by third-party labs. It is "not like self-stated," so everyone involved can trust what they are receiving and delivering.

How Moxa Approaches Cyber Resilience

Asked how Moxa builds cyber resilience into its designs, Costa said the company follows two main frameworks. On the IT side, it follows the ISO 27000 series to protect data and customer information. For products, it follows IEC 62443, which defines what should be included in how products are built.

He listed several elements. One is the incident response team already discussed. Another is actively searching the company's own processes for vulnerabilities, with the goal of finding them "before the bad guys find it" and releasing fixes. He stressed that this is about process and that it is verified by an outside company, not just defined internally. He believes this is why standardized definitions of security are becoming popular. He also presented this as a way to reduce supply chain risk for customers.

On the solutions side, Costa named two areas. The first is better protection at the edge of the network through improved segmentation. The second, which he called the second major problem after segmentation, is a lack of visibility. Moxa offers tools to help customers see what is happening at the very end of the network and to detect whether they may be under attack. He described visibility and segmentation as a necessity, not a trend, along with working with vendors that do not introduce new vulnerabilities into your system.

Chris added that for manufacturing listeners who do not focus on security day to day, understanding what makes a product secure by design helps them know what questions to ask their security teams and vendors.

Outlook: A Transition Phase, and a Warning About Change

Looking ahead, Costa expects AI adoption, along with both its benefits and its threats, to keep increasing. He does not see a future without continued pressure to improve. Demand is growing, and so are the threats that come with it. Certifications are needed, but he believes the market will take time to mature to the point of self-regulation, where customers routinely require these standards and the whole ecosystem works together. "We are in this shifting phase," he said.

His practical advice was aimed at asset owners, the people responsible for a system. Any change to an industrial system can itself cause incidents if you don't know exactly what you're doing, which is why the industry is cautious about changes. You need to understand what you are doing to avoid creating new problems or vulnerabilities. His recommendation was to find a partner that understands both networking and security and can help build a plan, because good products alone are not enough without an understanding of these impacts. He named Moxa as a company he can recommend. His framing was that such a partnership lets organizations focus on their core business while adopting AI, which he called necessary, "in the right way," with proper security in place.

The episode ended lightly. Asked what meal he would choose if this conversation happened over food, Costa admitted he loves junk food but tries to be disciplined, so he picked a protein shake. He added that he reads every nutrition label, which, as Chris noted, explains where his analogy came from.