Artificial intelligence is becoming a true industry, with all the pluses and minuses that entails, according to a sweeping new report.

Why it matters: AI is now in nearly every area of business, with the pandemic pushing even more investment in drug design and medicine. But as the technology matures, challenges around ethics and diversity grow.

Any future real-world conflict between the United States and an adversary like China or Russia will have direct impacts on regular Americans because of the risk of cyber attack, Kevin Mandia, CEO of cybersecurity company FireEye, tells "Axios on HBO."

What they're saying: "The next conflict where the gloves come off in cyber, the American citizen will be dragged into it, whether they want to be or not. Period."

The arrests and charges in the aftermath of the Jan. 6 Capitol Hill insurrection made clear the power of facial recognition, even as efforts to restrict the technology are growing.

Why it matters: With dozens of companies selling the ability to identify people from pictures of their faces — and no clear federal regulation governing the process — facial recognition is seeping into the U.S., raising major questions about ethics and effectiveness.

Secretary of State Mike Pompeo said in a Friday evening interview that "we can say pretty clearly that it was the Russians" behind a massive cyber attack that breached dozens of government agencies, think tanks and companies.

Driving the news: Pompeo's comments on "The Mark Levin Show" are the first from a Trump administration official publicly linking Russia to the hack. President Trump has yet to address the issue.

A cybersecurity firm is working with the Vatican to defend its priceless collection of digitized writings from hacking efforts.

Why it matters: Digitizing library archives can provide an invaluable backup should the originals be lost or destroyed, but they're also vulnerable to cyberattacks. Without stout defenses, digital libraries can be looted or even vandalized.

Microsoft has a new tool called "Productivity Score" that lets managers track how often their workforces are using Word and Excel, how many emails they're sending on Outlook, and how many video meetings they're attending on Teams or Skype.

The big picture: After fielding backlash over privacy concerns, Microsoft no longer allows companies to collect individual employee data with the tool. Firms can just look at aggregate numbers to track how they're using different products.

The Swiss intelligence service has known since at least 1993 that Switzerland-based encryption device maker Crypto AG was actually a front for the CIA and its German counterpart, according to a new report released by the Swiss Parliament, but Swiss leaders were in the dark until last year.

Why it matters: Switzerland’s intra-governmental information gap is unlikely to be welcome news in Europe, which already looks warily upon the U.S.’ expansive surveillance practices. Still, Crypto AG provided information of incalculable value to U.S. policymakers over many decades.

Governments around the world have seized on the coronavirus crisis as an opportunity to expand digital surveillance and harvest more data on their citizens, according to a report out Wednesday from Freedom House, a democracy and human rights research group.

Why it matters: Privacy advocates have warned since early in the pandemic that the tech behind efforts to conduct contact tracing and enforce quarantines and other public safety protocols could be abused and made permanent, particularly in authoritarian countries like China.

The militia groups who had allegedly plotted to kidnap Michigan Gov. Gretchen Whitmer (D) also discussed kidnapping Virginia Gov. Ralph Northam (D) during a June meeting in Ohio, an FBI agent testified in court on Tuesday.

The big picture: FBI agent Richard Trask was part of the investigation that thwarted an extremist plot last week to kidnap Whitmer and overthrow state governments and law enforcement. Six Michigan residents were arrested in connection with the plot, while seven others linked to the militia group Wolverine Watchmen were arrested for allegedly planning to attack the Michigan Capitol.

Jessica Rosenworcel, a Federal Communications Commissioner, said Tuesday that she hopes smart cities and 5G could eventually predict and ensure the safety of its residents, even from natural disasters like wildfires.

What she's saying: "Wouldn’t it be fantastic if we knew those kind of things well in advance, if we had a predictive ability that exceeds what we have today because we are looking at patterns at a scale that previously we haven’t been able to do? I think that those things are real and they are not so in the far-off future," she told Axios' Erica Pandey at a virtual event.