AI is Now Leading Driver of New Cybersecurity Spending

AI is now the leading driver behind new investment into cybersecurity budgets, according to a report released Tuesday from IANS and Artico Search.  

About seven of every 10 CISOs surveyed said AI was their top priority for new cybersecurity spending. Two specific areas for AI-related spending shown in the report include automating security operations and enhancing identity and access management. 

Overall security spending rose 5% in the current survey, which is barely ahead of the 4% spending increase in the year-ago report. AI spending priorities come at a time of relatively modest growth in overall security spending.

Security budgets, according to IANS, range from about $1 million per year for companies with annual revenue of $100 million in revenue or less to more than $30 million for companies with annual revenue of more than $10 billion.

IANS researchers said security teams are being flooded with tools in response to rising concerns about AI-enabled attacks. 

“Vendors are racing to monetize the AI hype by adding AI features and using them to justify significant price increases,” Nick Kakolowski, senior research director at IANS, told Cybersecurity Dive. 

CISOs say they expect AI will make their security operations more productive in the long run, and they are not as worried as initially expected that AI might make traditional security teams obsolete or lead to widespread layoffs. 

The 2026 Security Budget Benchmark Report is based on a survey of more than 500 security executives. The report analyzes a range of issues, including cybersecurity investment, staffing trends and how business priorities are impacting security strategy. 

The report shows that eight of every 10 CISOs expect AI will create demand for new cybersecurity roles and job skills. About seven of every 10 said they do not expect they will need to cut headcount because of AI. 

AI is having a major impact on how organizations are able to discover flaws in their software and respond to threats. Organizations are increasingly using AI to search for critical flaws in software and also hunt for threat activity that may indicate malicious activity within their systems. 

Criminal and state-linked hackers are also using AI to enhance the speed and scope of their attacks.

 

This article was written by David Jones from CIO Dive and was legally licensed through the DiveMarketplace by Industry Dive. Please direct all licensing questions to legal@industrydive.com.