What's Happening?
A recent study by KPMG reveals a significant shift in investment priorities among UK companies, with cybersecurity emerging as the top focus over artificial intelligence (AI) for 2026. Despite the ongoing
hype around AI, many UK executives are now prioritizing cybersecurity due to increasing threats and high-profile cyber-attacks. The KPMG Global Tech Report 2026 indicates that 57% of UK companies plan to increase their cybersecurity budgets by more than 10% over the next year, compared to 46% for AI. This shift is attributed to the need for enhanced cyber resilience amidst growing geopolitical tensions and the vulnerabilities exposed by rapid AI transformations.
Why It's Important?
The prioritization of cybersecurity over AI investment highlights the growing recognition of cyber threats as a critical business risk. As companies increasingly rely on digital technologies, the potential for cyber-attacks poses significant operational and financial risks. By focusing on cybersecurity, UK businesses aim to protect their critical assets and ensure operational resilience. This shift also reflects a broader trend where organizations are embedding security into their digital transformation strategies, recognizing it as an enabler of growth rather than a mere compliance requirement. The emphasis on cybersecurity investment is expected to enhance trust and reliability in digital operations, ultimately supporting long-term business sustainability.
What's Next?
As UK companies ramp up their cybersecurity investments, they are likely to focus on integrating security measures into their AI and cloud initiatives from the outset. This approach will involve establishing clear governance frameworks, identity and access controls, and continuous monitoring to mitigate risks. Additionally, businesses are expected to invest in talent development, hiring specialists in AI ethics, machine learning operations, and cybersecurity to support their digital transformation efforts. The ongoing investment in cybersecurity is anticipated to drive innovation and operational efficiency, positioning UK companies to better navigate the evolving digital landscape.
