Log In Get Started
Economy March 22, 2026

Enterprises Keep Cybersecurity Budgets Intact as AI Spend Rises, Jefferies Survey Finds

CIOs say security will be protected even as firms shift IT dollars to support artificial intelligence

By Caleb Monroe
Enterprises Keep Cybersecurity Budgets Intact as AI Spend Rises, Jefferies Survey Finds

A Jefferies survey of 30 CIOs and IT decision-makers indicates that increased investments in artificial intelligence are unlikely to come at the expense of cybersecurity funding. Respondents reported that cybersecurity is not expected to be among top areas for budget cuts to finance AI initiatives. Instead, companies are prepared to reallocate funds from other IT categories, such as services and software, while maintaining or growing cyber spending. The survey also highlights that AI is reshaping some parts of the security landscape, with threat intelligence and code security seen as more susceptible to disruption from large language model providers; identity, network, and endpoint security are considered less exposed. Currently, firms dedicate roughly 6% to 7% of cybersecurity budgets to AI-related security work, a share that is small but projected to rise as adoption expands.

Key Points

  • Jefferies surveyed 30 CIOs and IT decision-makers; none expect cybersecurity to be a primary target for budget cuts to fund AI.
  • Companies are likely to reallocate funds from IT services and software rather than reduce cybersecurity spending, impacting enterprise IT and providers of services and software.
  • AI is changing parts of the security landscape: threat intelligence and code security are viewed as most exposed to disruption from large language model providers, while identity, network, and endpoint security are seen as less vulnerable.

Companies increasing their investments in artificial intelligence do not appear poised to trim cybersecurity budgets, according to a recent survey conducted by Jefferies. The study, which polled 30 CIOs and other IT decision-makers, found that none of the respondents expected cybersecurity to be among the primary areas targeted for cuts to free up funds for AI projects.

Budget priorities and reallocation

Rather than reducing spending on security, organizations are signaling a willingness to shift resources from other parts of IT. The survey indicates that expenditures on services and software are likelier candidates for reallocation as enterprises prioritize AI capabilities, while cyber budgets are maintained or even expanded. This pattern underscores the central role security plays in corporate IT planning as firms pursue new AI deployments.

Drivers sustaining security demand

Survey participants pointed to several persistent forces that underpin demand for cybersecurity solutions. Rising digital threats, regulatory requirements, and the increasing complexity of IT environments all contribute to continued investment in security. As companies add AI tools to their technology stacks, the need to protect data, models, and supporting infrastructure becomes more pronounced, making security a non-negotiable area of spending rather than an optional cost center.

AI's dual impact on cybersecurity

AI is also beginning to change the cybersecurity landscape in specific ways. The Jefferies survey identified threat intelligence and code security as domains that respondents view as most exposed to disruption from large language model providers. These particular areas leverage pattern recognition and data analysis, capabilities where large models excel, and thus could see more rapid transformation. By contrast, respondents considered identity, network, and endpoint security to be less vulnerable to such disruption, citing the high reliability and precision those functions require.

Spending on securing AI systems

Expenditures devoted specifically to protecting AI systems remain relatively modest today but are growing. On average, companies currently allocate around 6% to 7% of their cybersecurity budgets to AI-related security activities. Respondents expect that share to increase over time as AI adoption accelerates across enterprises.

Net effect on cybersecurity budgets

Overall, the Jefferies findings portray AI as more of a tailwind than a threat for cybersecurity spending. Security's defensive characteristics appear to hold even amid rapid technological change: rather than cannibalizing cyber budgets, AI investment efforts are driving reallocation from other IT areas while reinforcing the importance of maintaining robust security postures.

Summary

The Jefferies survey of 30 CIOs and IT decision-makers shows that increased AI spending is unlikely to prompt cuts to cybersecurity budgets. Companies are more inclined to redirect funds from services and software, preserve or increase cyber investments, and incrementally raise the share of cyber budgets dedicated to securing AI systems, currently averaging 6% to 7%.

Risks

  • Reallocation of IT budgets away from services and software could pressure vendors and teams dependent on those spending lines - this affects IT services and software sectors.
  • Certain cybersecurity functions, notably threat intelligence and code security, face the risk of disruption from large language model providers, creating uncertainty for vendors and buyers in those niches.
  • Spending specifically for securing AI systems remains relatively small (around 6% to 7% of cyber budgets) and the pace at which that allocation grows is uncertain as AI adoption unfolds.

More from Economy

Housing slump leaves New Zealand searching for a fresh recovery plan Mar 22, 2026 Bank of America Sees Possible Near-Term Floor for Japanese Stocks, Flags Geopolitical Risks Mar 22, 2026 Barclays Says Private Credit Strains Fall Short of a 2008-Style Crisis Mar 22, 2026 Persistent Middle East conflict and energy shock weigh on fragile equities rally Mar 22, 2026 Israel Orders Destruction of Bridges Over Litani River, Increases Home Demolitions Near Lebanon Border Mar 22, 2026