Companies are Ramping Up Cybersecurity Budgets for 2024 – with GenAI Playing a Huge Role

Given that business decision-makers view cybersecurity as their largest corporate concern rolling into 2024, it’s not exactly a shock that data security budgets are rising at a higher rate than in 2022.

What is surprising is how much the C-suite is leaning on generative artificial intelligence (Gen AI) to provide robust cyber defense in 2024 company budgets.

As usual, the “reasons why” lie in the data, with some useful information coming out of PwC’s 2024 Global Digital Trust Insights report.

The study, which surveyed 3,800 senior executives across the world, offers a unique dichotomy to C-suite decision-makers. A rising number of executives view Gen AI as both a problem and a solution when it comes to cybersecurity.

The study found the number of global firms who experienced a data breach that resulted in a loss of $1 million or more rose from 27% to 36% PwC reported.

“Among business and tech leaders, there is increasing concern over the rise of Generative AI as it relates to cybersecurity, PwC notes. “Another surge in cyber threats may be coming because GenAI can help create advanced business email compromise at scale.”

Additionally, 52% expect GenAI to lead to “catastrophic cyberattacks” in the next year. Another 77% say their firms will use GenAI “in an ethical and responsible manner.”

On the cyber defense side of the ledger, 79% of senior executives expect cyber budgets to increase in 2024, that’s up from 65% this year. “Organizations who show greater maturity in their cybersecurity initiatives, report a greater number of benefits and a lower incidence of costly cyber breach of USD$1M, or a breach at all,” the study reports.

With a rise in cyber defense awareness comes a simultaneous rise in “excitement” in the C-suite over Gen AI’s emergence, PwC reports.

This from the study:

• 77% say “Generative AI will help organizations develop new lines of business within the next three years.
• 74% agreed that “employees’ personal use of Generative AI will lead to tangible increases in their productivity within the next 12 months.
• 75% agreed “Generative AI-driven processes within an organization will increase employee’s productivity within the next 12 months.

Tamping Down Excitement and Focusing on Defense

Excitement is one manifestation of Gen AI among executives and that’s understandable, PwC states. But corporate leaders shouldn’t allow heightened anticipation to overwhelm the more sober responsibility of managing their firm’s cyber defenses.

“Our global survey shows that cybersecurity continues to be top of mind for business leaders, and now more than ever,” says Sean Joyce, global cybersecurity and privacy leader at PwC US.

“C-Suites need to be agile and adapt to the changing market — with emerging tech developments hitting the market in transformative ways, executives must challenge the status quo by building security into the fabric of the organization instead of reacting once there is a crisis,” he adds.

More and more, those executives are counting on AI to protect their company data.

“GenAI is strong at synthesizing voluminous data on a cyber incident from multiple systems and sources to help leaders understand what has happened,” PwC notes. “GenAI can present complex threats in easy-to-understand language, advise on mitigation strategies, and help with searches and investigations.”

That’s only part of the solution as companies need to better understand the risks as well as the rewards of using Gen AI in the workplace. In fact, the PwC report notes more than 40% of leaders said they don’t understand the cyber risks posed by emerging technologies (think AI, blockchain, and quantum computing.)

“Organizations should adopt a “Responsible AI” toolkit to guide the trusted and ethical use of AI,” Joyce said. “Although it’s often considered a function of technology, human supervision and intervention are essential to AI.”

“Along with security and privacy risks, they must now account for additional areas involving data risks, model and bias risks, prompt or input risks, and user risks when they begin working with GenAI,” he added.





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