AI tops cybersecurity spending as CISOs boost budgets

IANS Research and Artico Search have published the 2026 Security Budget Benchmark Report, which found artificial intelligence is the top target for new cybersecurity spending.

Based on responses from more than 500 security executives, the report found 69% of Chief Information Security Officers identified AI for security as their main priority for net-new budget allocation. It also found 91% expect AI to make their security teams more productive over the next year.

Hiring expectations point to change rather than contraction. The findings show 81% of CISOs expect AI to create demand for new roles and skills, while 69% do not expect it to reduce existing security headcount.

That comes against a backdrop of tight budget conditions. On average, security budgets rose 5% in 2026, up from 4% in 2025, while 45% of organisations reported flat budgets and 10% recorded a decline.

The headline growth figure also masks sharp differences between companies. Venture-backed businesses, private equity-owned groups and well-funded public companies continued to expand security budgets more aggressively, with some of that spending directed towards AI-specific tools.

Budget pressure

Even where budgets are rising, CISOs appear to be under pressure to justify spending against business priorities. Increased business or operational risk was the most common reason for a larger security budget, cited by 48% of respondents whose budgets grew.

By contrast, only 3% said a major industry breach was the main reason for a budget increase. That suggests security leaders are making the case for investment around operational resilience and commercial risk rather than reacting mainly to high-profile incidents elsewhere.

How organisations classify AI spending also appears to affect how much they commit to it. About 70% of organisations that track AI as a dedicated budget line item or subcategory reported increased AI funding, compared with 42% where AI is embedded within the security budget and 31% where it is funded through IT, data or innovation budgets.

Those already spending heavily on AI expect that trend to continue. Among organisations that increased AI security spending by more than 10% this year, 75% expect another increase of more than 10% in the next budget cycle.

Shift in mix

The report also points to a changing balance between spending on people and software. AI security tooling now accounts for 3% of the average security budget on its own, and, combined with the rest of the software category, software makes up 35% of spending.

That puts software just two percentage points behind staff and compensation, still the largest category. The narrow gap suggests security chiefs are directing more money towards tools while also trying to retain experienced personnel and recruit staff with different skills.

IANS said AI was changing staffing needs rather than removing them. The findings suggest security teams still need people to assess risk, investigate irregularities and make decisions in uncertain situations, even as more automation is introduced into workflows.

The report included a factual context sentence alongside researchers' comments on that trend.

"AI has changed the cybersecurity investment conversation," said Nick Kakolowski, Senior Research Director, IANS. "Organisations aren't simply buying new AI tools. They're rethinking how security teams operate, where they invest, and how they prepare their workforce for the future. The organizations seeing the greatest momentum are using business interest in AI as a lever to get resourcing for security initiatives that enable AI use."

Artico Search linked the rise in AI spending to a broader reallocation of work within security teams. In the report, it said automation has not translated into broad-based job losses.

"More AI and automation embedded in security workflows has not led to massive layoffs, but it has led to the repurposing of team members and a change in hiring and resourcing," said Steve Martano, IANS Faculty and Partner, Artico Search. "CISOs are looking at their team members to find anomalies, elevate relevant threats and make judgment calls that AI systems are not yet equipped to do with incomplete or ambiguous information."

Outlook

Sentiment among security leaders suggests stronger budget growth may lie ahead, even if the current year remained restrained. While 45% of CISOs saw their security budgets increase in 2026, 64% expect an increase in 2027 and 8% anticipate a cut.

That outlook may reflect expectations that AI-related security work will become more central to broader business operations. As companies adopt AI across products, internal systems and workflows, security teams may find it easier to argue for additional funding tied to governance, risk management and oversight.

For recruiters and advisory firms, the data also points to a market where employers are likely to seek different profiles rather than simply larger teams. The strongest demand may be for staff who combine technical security knowledge with judgement, policy oversight and the ability to work around fast-changing AI use cases.

"The role of AI in cybersecurity extends well beyond automation," said Martano. "Organisations that align AI security investments with broader business objectives, establish clear governance, and invest in developing new skills will be better positioned to manage risk while enabling innovation."