LevelBlue: The Fight Against Software Supply Chain Risks

As cyber threats escalate in scale and sophistication, fortifying software supply chains has become an essential mandate for organisations across the globe.

From his vantage point at the forefront of this effort, Kory Daniels, Chief Security and Trust Officer at LevelBlue – the global cybersecurity joint venture between AT&T and WillJam Ventures – guides businesses in building strategies that safeguard their digital ecosystems against evolving threats.

Drawing on extensive expertise in risk management, corporate resilience and digital trust, Kory leads LevelBlue’s mission to help enterprises defend against both current and emerging cyber risks through advanced data analytics and AI-powered intelligence.

Here, he shares how LevelBlue enables companies to navigate the increasingly complex software supply chain landscape, the expanding influence of the API economy and why core principles of software engineering remain vital in an era defined by automation and artificial intelligence.

What were the primary factors driving the surge in software supply chain attacks in 2025? How is the growing API economy influencing these risks?

Software supply chain attacks have surged as attackers exploit the growing interconnectedness of modern software ecosystems. The widespread use of open-source components, automation tools and continuous integration systems has created new opportunities for attackers to achieve their objectives taking advantage of new, or evolving business exposures. Our research shows that supply chain resilience remains low on the corporate agenda, with only 25% of executives prioritising supplier security engagement.

As the API economy expands, the number of connections between services and partners continues to grow, amplifying the potential impact of a single misconfiguration or compromised credential.

Poorly monitored devices and unnecessary access rights can give attackers a way into trusted environments. These dynamics have transformed supply chains into one of the most attractive and efficient targets for attackers, making proactive risk management and transparency essential.

How do the diverse sources of software – including internal development, external vendors, open-source libraries and AI-generated code – compound the challenges organisations face in securing their supply chains?

Today’s software supply chain is defined by speed, scale and interdependence. Internal development teams are under constant pressure to deliver, which can result in inconsistent security practices and limited testing coverage. Externally sourced and vendor supplied software often lacks transparency, meaning organisations will struggle to have visibility into how third party code is developed, verified or maintained. Open-source components can also lead to further attacks, creating complex webs of dependencies that can conceal hidden vulnerabilities.

The rapid adoption of AI-generated code adds a new dimension to this challenge, raising questions about accuracy, provenance and accountability. These converging sources create a fragmented ecosystem where ownership is unclear and assurance is difficult to maintain. Building resilience requires continuous validation, transparent supplier relationships and a shared understanding of risk across every stage of the software lifecycle.

Could you explain why the current environment demands a renewed focus on software engineering fundamentals and Quality Assurance roles within organisations?

Amid rapid automation and AI assisted development, the fundamentals of secure software engineering have never been more important. DevOps must shift to DevSecOps culture in order to implement the necessary people, process and technology in defining good coding practices supported with appropriate testing and quality assurance prior to code release. 

When release cycles accelerate, traditional QA roles become essential in safeguarding the integrity of both internally developed and integrated software. They provide the independent verification needed to ensure that systems behave as intended and can recover safely from faults.

Recent large-scale disruptions have shown that overlooking these fundamentals leads to cascading failures across entire ecosystems. By reinstating the importance of QA and secure design principles, organisations can build software that is not just functional but resilient by design, reducing both technical debt and exposure to modern threats.

In what ways have AI advancements both aided software development and simultaneously introduced new vulnerabilities in the software supply chain?

AI has accelerated software delivery by assisting with code generation, testing and analysis. Some organisations are pushing AI into greater roles through the deployment of AI Agents to increase automation and scale. AI in code assist enables developers to detect issues earlier and automate repetitive tasks, improving productivity and quality. However, it has also opened the door to new risks. 

AI-generated code can embed insecure logic or pull from unverified sources, introducing vulnerabilities that may go unnoticed until exploited. Adversaries are using the same technology to scale social engineering and create synthetic identities, deepfakes and malicious code with remarkable precision.

The dual nature of AI – both a powerful defence and a potential access point for attackers – underscores the need for human oversight, ethical frameworks and validation processes in every stage of software development.

What practical steps should companies take to strengthen trust and security in their software supply chains while balancing the need for innovation and speed?

Trust and security is built on transparency, communication testing and culture. Organisations should begin by mapping their digital ecosystems, identifying dependencies and maintaining software bills of materials to track provenance.

Engaging regularly with suppliers to assess security credentials transforms compliance into collaboration. Integrating continuous testing, exposure management and threat detection within development pipelines ensures that security scales alongside innovation. Cultural change is equally important, as leadership must treat resilience as a shared objective across business and technology functions.