Explaining 'Hallucinations' as Context Failures

Are attackers really using AI to run end-to-end cyber campaigns? In this episode, Edward Wu (Founder and CEO, DropzoneAI) joins Ashish to separate the hype from reality when it comes to AI-driven attacks .Edward explains how attackers are currently using open-source LLMs for reconnaissance and spear-phishing , and why the major commercial models now explicitly prohibit users from generating exploits without vetting . On the defense side, Edward shares how AI agents have successfully automated over 160 years' worth of alert investigations in the real world proving that 100% software-delivered SOC triage is already here .We also debunk the myth of AI "hallucinations," explaining why most errors are actually just poor context management . If you're building a security operations center or working with an MSSP, this episode will teach you how to shift from manual alert fatigue to leveraging AI for threat hunting.

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If you are interested in AI Security

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Questions asked:

(00:00) Introduction(02:50) Who is Edward Wu? (Founder of Dropzone AI) (04:50) The Reality of AI Cyber Attacks Today (Recon vs. End-to-End) (07:20) Why Commercial LLMs Are Blocking Exploit Generation (11:50) How MSSPs are Evolving with AI Triage (18:20) The Asymmetric Capacity Gap: Why Humans Can't Keep Up (22:30) Automating 160 Years of Alert Investigations (23:50) Why AI Hallucinations are Actually Context Management Failures (26:00) Build vs. Buy: The Data Network Effect for AI Agents (29:20) The New Workflow for SOC Analysts & Threat Hunters(31:30) Defining "Threategy": Scope, Authorization, and Context (35:50) How to Detect Prompt Injection (Treat it like an Insider Threat) (38:30) Dropzone AI Announcements at RSAC

Resources spoken about during the episode:

- Dropzone Diner RSAC 2026

- If you want to learn more about Dropzone- you can do that here!