AI Driven Attacks Spurs Growth in Cybersecurity Budgets

The cybersecurity industry faces a challenge that is anything but business as usual, says GlobalData in its latest report, Cybersecurity – Thematic Intelligence. The report says the prospect of offensive attacks using artificial intelligence is prompting increases in cybersecurity budgets as organizations try to understand the impact of generative AI on their security.
GlobalData forecasts that the global cybersecurity market will be worth $290 billion by 2027, growing at a compound annual growth rate of 13% between 2022 and 2027. Managed security services, application security, and identity and access management will be high-growth areas.
“Organizations have learned how to cope with cyberattacks that deliberately target enterprise technology, such as networks, cloud storage, and endpoint devices. But AI is a game-changer,” says GlobalData Principal Analyst David Bicknell. “Now, organizations must respond to AI attacks that can adapt to a specific environment, seek out weaknesses, and exploit them.”
“It is still too early to know where the balance lies in how AI impacts organizations’ cybersecurity positioning. AI can help organizations improve their efficiency in threat detection, hunting, and incident response. However, at the same time, adversaries will use AI in cyberattacks.”
GlobalData also says the expected significant change in the cybersecurity market will drive a strong focus on cybersecurity mergers and acquisitions deal activity throughout 2024. They say Cisco’s $28 billion acquisition of Splunk will spark AI-led cybersecurity M&A deals in 2024.
“Both startups and maturing cybersecurity companies are expected to be on the radar of larger vendors looking for products and talent,” says Bicknell. “In addition, cybersecurity M&A is anticipated to attract regulators’ interest, particularly as a small group of private equity players are snapping up numerous cybersecurity companies.”