UK firms to boost cyber spend as AI risks and tensions rise

A recent report reveals that 68% of UK businesses plan to increase cybersecurity expenditure in response to rising AI risks and geopolitical uncertainties. The Q1 2026 Barclays Business Prosperity Index indicates that a significant number of business leaders recognize the need for enhanced cyber resilience, with only 30% confident in managing major cyber incidents. Large firms lead in investment increases, spending an average of £1.3 million in cybersecurity compared to smaller businesses.

Key concerns include damage to customer trust (28%) and operational disruptions (27%). AI integration in operations is also on the rise, with 61% of firms employing agentic AI, despite apprehensions regarding its reliability and security risks.