Booz Allen CEO Horacio Rozanski says the biggest issue is the intersection of AI and cyber/national security, especially the risk that Chinese large language models could inject vulnerable code into the U.S. software supply chain. He also frames 2026 as a critical year for cyber-AI threats, argues the U.S. needs faster guardrails without slowing industry, and highlights Booz Allen’s role in federal security, Golden Dome, and drone/autonomy efforts.
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This Fox Business interview centers on Horacio Rozanski’s warning that AI adoption is creating new national-security and cyber risks, not just productivity gains. His core thesis is that large language models are now entering the software supply chain, which means code generated by AI can become a hidden vulnerability inside critical systems. He says Booz Allen’s testing found that when a Chinese language model is prompted with militarily sensitive topics or asked from the perspective of a federal employee, it produces more vulnerable code than with neutral prompts. In his framing, that matters because once this code is embedded in software supply chains, it may be impossible to trace back and could create lasting security exposure. Rozanski repeatedly ties the issue to strategic competition with China. …
Near term, the actionable read is that cyber/defense names may benefit as AI security fears get more airtime, but the trade is vulnerable to overreaction if no fresh incident or policy catalyst follows. The immediate risk is that adoption enthusiasm outruns validation, creating headline-driven volatility.
Over the next few months, the setup favors companies that sell secure AI integration, cyber defense, and federal-grade validation if institutions start budgeting for AI risk management. The view weakens if AI deployments scale smoothly without visible breaches, because then the market may stop paying up for the security angle.
Structurally, the transcript argues AI security will become a permanent layer in enterprise and national defense procurement, especially under U.S.-China competition. That implies durable demand for trusted software, model testing, and defense-tech integration rather than AI adoption alone.
Booz Allen says the cyber-AI intersection is a huge national-security issue that will define the next 25 years.
Direct strategic framing from the guest.
A Chinese language model prompted with militarily sensitive topics produced more vulnerable code than with neutral prompts.
Specific empirical claim from the interview.
AI-generated code can enter the software supply chain in ways that are hard or impossible to trace back.
Explains why the model behavior matters financially and strategically.
How worried are you about agentic AI and AI agents behaving unpredictably, especially with bad actors trying to hack into bank accounts?
He is very worried. He believes 2026 is the year of the cyber-AI intersection, and attackers have more liberty to try things because they don't care about collateral damage from failed attempts, while defenders have to be right every time which slows them down. He says Booz Allen is accelerating products to market and working with leading AI labs and companies to be part of the solution.
Is Booz Allen going to be involved in the Golden Dome project the President wants up and running in the coming years?
Booz Allen is proud that they won a seat in the program. He can't talk about what they are doing specifically but says it's very exciting for the U.S., and their commitment is bringing their capabilities to it.
Can Anduril Industries ramp up fast enough to meet the demand that exists?
He acknowledges it's a real challenge that doesn't just apply to Anduril but across autonomy. Booz Allen has invested and partnered with a number of drone companies. Their goal is to ensure that if the country wants to buy a million drones next year, the technologies are ripe to get that done, and drones can operate together whether from one manufacturer or many.
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