AI increases cybersecurity threats amidst IT budget cuts, study warns

A new study warns that cybersecurity measures must be prioritized amidst an increasingly sophisticated threat of artificial intelligence (AI). 

Sponsored by CDW Canada, a provider of technology services for business, government, education and healthcare, the annual study surveyed over 700 IT security, risk and compliance professionals to explore the current state of cybersecurity among Canadian organizations. 

The report, Cybersecurity in Focus 2024: Trends, Threats and Strategies, found that cybersecurity incidents were up 26 per cent from 2023.

“The rapid evolution of AI in the cybersecurity landscape demands a proactive approach to defend against evolving cyber threats,” said Ivo Wiens, Field CTO, Cybersecurity at CDW Canada, in a press release. “But this also goes both ways. By leveraging the power of AI in their cybersecurity investments, organizations can effectively stay ahead of emerging threats.”

According to the study, cyber-attackers are leveraging machine learning tools to breach sophisticated security measures, with AI automating the process of detecting system vulnerabilities. 

“Similarly, AI has the potential to bolster cyber defence efforts by swiftly analyzing extensive data, recognizing patterns and predicting future threats,” the release noted. 

The research determined that Canadian organizations are developing more caution about the risks associated with AI and its ability to empower cyber-attackers. 

The majority of surveyed experts share common concerns, with 58 per cent of respondents worried about advanced abilities to exploit system vulnerabilities.

Security amid cost cuts

As a response to the current economic backdrop, Canadian organizations are adopting cost-cutting measures, which often lead to decreases in IT budgets, according to the study.

Compared to 2023, IT budgets for Canadian organizations have declined by more than half, according to the report. But organizations continue to increase cybersecurity spending in proportion to their overall IT budget year-over-year, the press release explains. 

The trend of reduced IT spending may lead to “breach fatigue,” according to the study, ushering in the potential to negatively impact security teams and widen the margin of error. 

“Given the current environment of tightened budgets, thinly stretched teams and increased cyberthreats, organizations must have robust security measures in place to safeguard against existing threats and proactively prepare for future risks, ensuring a resilient cybersecurity posture,” the release noted.

“Organizations face a critical decision when allocating IT budget for cybersecurity,” said Daniel Pinsky, CSO and head of security governance and compliance at CDW Canada, in the press release. 

“Despite shrinking IT budgets, it’s heartening to see Canadian organizations prioritizing cybersecurity to effectively mitigate evolving threats and safeguard critical information. Organizations must ensure cybersecurity teams remain well-resourced to avoid complacency.”