Businesses are recognizing the importance of their employees in maximizing the value of security technology, according to recent research. While AI-driven cybersecurity is often hailed as a game-changer, a study has revealed that nearly half of the companies planning to increase their cybersecurity spending in the next year will do so to strengthen their human resources.
The study, conducted by IBM, focused on the cost of data breaches. It found that organizations that experienced a breach faced an average cost of $4.45 million, which could rise to as high as $10.93 million in sectors like healthcare. However, companies that extensively utilized AI and automation solutions in their defenses were able to identify and contain breaches 108 days faster than those without such capabilities. These companies also reported a $1.76 million lower data breach cost compared to organizations lacking these tools.
Despite the potential of AI technology, it is crucial not to underestimate the changes required to achieve optimal results. AI should not be viewed as a magic solution that can single-handedly keep cybercriminals at bay. The most successful implementations of AI technology involve a combination of human employees and the tools they use.
In line with this perspective, a new study by cybersecurity consultancy S-RM has revealed that while 97% of firms plan to increase their use of AI tools, only 53% are confident in securing these tools. Introducing new technologies also presents new opportunities for criminals, particularly if the implementation is inadequate.
S-RM surveyed 600 c-suite and IT budget holders from organizations in the UK and US with revenues exceeding $500 million. The study found that fewer companies now view their investments in digital tools as providing high value for money. In previous years, around three-fifths of respondents believed technology offered high value for money, but this figure has dropped to less than half in 2023.
The study also highlighted specific areas where technology investments were seen as less valuable. While 49% of respondents considered cybersecurity technologies as high value for money, this figure dropped to 42% for risk assessments and 40% for third-party risk management. Researchers suggest that this decline in perceived value reflects a growing awareness that investing in cybersecurity technology also requires investment in governance and personnel to effectively enable and manage it. This realization appears to be driving increased investment in the coming year.
Cybersecurity budgets grew by 3.1% in 2023, but companies anticipate an 8% increase in the next year. When asked about the reasons behind this, around 40% of respondents stated that they planned to upskill their teams or hire more skilled personnel to better deploy new technology. These responses were around 10% more popular compared to the previous year, indicating a significant shift in the understanding of the effectiveness of cybersecurity technology on its own.
However, there seems to be a disconnect between decision-makers and their staff, suggesting a potential lack of agility. Only 43% of IT professionals, who are responsible for deploying technology, considered it a high-value investment area, compared to 56% of C-Suite executives. This difference may reflect a misalignment of expectations between those directly involved in cyber technologies and those who are more removed from their day-to-day applications.
Jamie Smith, head of cybersecurity at S-RM, emphasized the importance of adequate budget allocation in addressing the growing cyber threat. While it is encouraging that cybersecurity budgets are increasing, Smith believes that the level of increase is insufficient. Organizations need to be cautious with their cybersecurity spending and identify areas that provide value for money to effectively manage emerging cyber threats within budget constraints.