Almost 60% of corporate cybersecurity budgets are higher this year: report

Dive Brief:

Nearly 60% of U.S.-based companies increased their cybersecurity budgets this year over 2023 levels, according to a recent Ponemon Institute survey.
Companies allocated as much as $26 million on average for cybersecurity initiatives in 2024, with 46% of respondents reporting a spending increase above 25%, according to the findings. Denver, Colorado-based cybersecurity firm Optiv sponsored the study.
Information technology “professionals and senior leadership are becoming more cognizant of the importance in strengthening their security posture, resulting in the increase of cybersecurity budgets and allocating funds based on proven effectiveness in reducing security incidents,” Larry Ponemon, chairman and founder of the Ponemon Institute, said in an Optiv press release.

Dive Insight:

The findings come as businesses grapple with escalating cybersecurity threats. Sixty-one percent of organizations represented in the research had a data breach or cybersecurity incident in the past two years. More than half of respondents (55%) said their organization has experienced more than four to five of such incidents.

“The threat landscape keeps breaking records as it becomes more volatile and complex,” the report said.

The study shows that many organizations are focused on artificial intelligence investments in particular as they scramble to keep pace with threat actors. Forty-four percent of respondents said their organization uses AI or machine learning to prevent cyberattacks.

A majority (61%) of organizations allocate cybersecurity investments based on “proven effectiveness in reducing security incidents,” according to the research. Assessing threats and risks facing the organization ranked as another top method (53%).

Thirty-six percent of respondents said their organization has no formal approach for determining their cybersecurity budget. “This lack of formal budgeting practices can lead to inefficiencies and missed opportunities to address critical security gaps,” Optiv said in its press release.

The Ponemon Institute surveyed 650 IT and cybersecurity practitioners in the U.S.