New IANS and Artico Search Report Finds AI Is Changing Cybersecurity Jobs, Not Eliminating Them

IANS and Artico Search today released the 2026 Security Budget Benchmark Report, revealing that AI is now the leading driver of new cybersecurity investment even as overall security budgets remain nearly flat, reshaping how organizations budget and staff security teams.

The findings come as cybersecurity leaders continue to operate in a constrained spending environment. On average, security budgets grew just 5% in 2026, a slightly larger increase than the 4% they experienced in 2025. 45% of organizations reported flat budgets, and 10% saw a budget decrease, putting greater pressure on CISOs to prioritize investments that deliver the greatest business value.

Also Read: IT Tech Pulse Exclusive Interview with Ken Claffey Chief Executive Officer and President of VDURA

The modest average budget growth also hides a widening split: venture- and private-equity-backed companies and well-funded public firms continued growing security budgets aggressively, funding new AI-specific tooling.

The research found that 69% of CISOs identified AI for security as their top priority for allocating net-new budget dollars, making it the most common investment area. At the same time, organizations are increasingly using AI to augment security teams rather than replace them. While 91% of CISOs expect AI to make their security teams more productive over the next 12 months, 81% expect AI to create demand for new roles and skills, and 69% do not expect AI to reduce existing security headcount.

“AI has changed the cybersecurity investment conversation,” said Nick Kakolowski, Senior Research Director at IANS. “Organizations aren’t simply buying new AI tools. They’re rethinking how security teams operate, where they invest, and how they prepare their workforce for the future. The organizations seeing the greatest momentum are using business interest in AI as a lever to get resourcing for security initiatives that enable AI use.”

“More AI and automation embedded in security workflows has not led to massive layoffs, but it has led to the repurposing of team members and a change in hiring and resourcing,” said Steve Martano, IANS Faculty and Partner at Artico Search. “CISOs are looking at their team members to find anomalies, elevate relevant threats and make judgment calls that AI systems are not yet equipped to do with incomplete or ambiguous information.”

Also Read: IT Tech Pulse Exclusive Interview with Michael Jack Chief Revenue Officer and Co-Founder of Datadobi

Key findings from the report:

• Organizations that formally budget for AI are investing more aggressively. About 70% of organizations that track AI as a dedicated budget line item or subcategory reported increased AI funding, compared with 42% where AI is embedded within the security budget (not a distinct budget line item) and 31% where it is funded in IT, data, or innovation budgets.
• Organizations investing aggressively in AI are doubling down. Among organizations that increased AI security spending by more than 10% this year, 75% expect another increase of more than 10% during the next budget cycle.
• AI is pushing software spend toward parity with people. AI security tooling now accounts for 3% of the average security budget on its own; combined with the rest of the software category, software represents 35% of the budget — just two points behind staff and compensation, the closest the gap has ever been.
• Business and operational risk, not breaches, are driving security investment. Increased business or operational risk was the most common driver of security budget increases, cited by 48% of CISOs with growing budgets. By comparison, just 3% cited a major industry breach as a primary driver.
• CISOs are optimistic about bigger overall security budgets in 2027. While only 45% of CISOs saw their security budgets increase in 2026, 64% expect an increase next year. Just 8% anticipate a budget cut in 2027.

“The role of AI in cybersecurity extends well beyond automation,” Martano added. “Organizations that align AI security investments with broader business objectives, establish clear governance, and invest in developing new skills will be better positioned to manage risk while enabling innovation.”

Write to us [⁠wasim.a@demandmediaagency.com] to learn more about our exclusive editorial packages and programmes.