AI Tops Cybersecurity Spending Priorities as Budgets Hold Flat

AI has become the leading priority for new cybersecurity spending, despite overall budgets remaining broadly unchanged, according to IANS’ 2026 Security Budget Benchmark Report. The report is based on interviews with 500 US security executives. Some 69% identified AI as an area for additional funding, ahead of security operations automation at 51% and identity and access management enhancements at 39%. Around a quarter of US chief information security officers expect to increase AI spending aggressively next year.

Software now represents 35% of security budgets, up from 29% in 2025, putting it just two percentage points behind staff and compensation.

IANS said AI is not expected to reduce cybersecurity employment. More than two-thirds of respondents, or 69%, do not expect to cut existing headcount because of AI, while 81% expect it to create demand for new roles and skills. Respondents also said AI was improving productivity (91%) and allowing staff to move to higher-value work (79%). However, median security-budget growth was flat, with 55% of organisations either holding budgets steady or cutting them amid economic pressure.

Budget growth varied by ownership: 71% of venture-capital-backed companies increased spending, commonly by more than 10%, compared with 52% of publicly listed firms. IANS faculty member Steve Martano said human staff would remain necessary to identify anomalies, prioritise threats and make judgement calls.