68% of UK Firms Plan to Increase Cyber Spending as AI Risks Rise

https://www.infosecurity-magazine.com/news/uk-firms-cyber-spending-ai-risks/

Publish Date: 2026-05-27 05:30:00

Source Domain: www.infosecurity-magazine.com

More than two-thirds of UK businesses have said they plan to increase cybersecurity spending over the next 12 months as AI adoption and geopolitical uncertainty reshape technology budgets.

According to the Q1 2026 Barclays Business Prosperity Index, 68% of UK business leaders expect to increase cybersecurity investment, while 46% believe new technologies are increasing their exposure to cybersecurity risks.

Cyber Spending Moves Up the Agenda

The index found that fewer than three in 10 businesses are confident in their ability to respond to a major cyber incident. Barclays said recent global turmoil has pushed resilience higher on the agenda, with firms reassessing investment plans during a quarter marked by intensifying geopolitical risk.

Large firms have moved fastest. More than a third of large businesses have increased cybersecurity investment since the start of 2026, compared with 26% of small businesses and 4% of micro businesses.

Read more on UK cyber resilience: UK Commits £90m for Cybersecurity and Pushes for ‘Resilience Pledge’

Average cybersecurity spending among decision makers has reached £505,000 ($680,000) so far in 2026, Barclays said. The figure rose to £1.3m ($1.75m) for large businesses, compared with £134,000 ($180,000) for small businesses and £15,000 ($20,000) for micro businesses.

Businesses identified several cyber-related concerns:

Damage to customer trust and confidence (28%)
Operational disruption or downtime (27%)
Loss of revenue (26%)
Loss of sensitive data or intellectual property (33%)

Matt Hammerstein, CEO of Barclays UK Corporate Bank, said UK businesses are operating in an environment where “uncertainty has become the norm.”

“What’s striking, however, is how businesses are responding. Rather than pulling back entirely, many are adapting to this new reality by tightening financial discipline, managing cash carefully and prioritizing investment where it strengthens resilience, productivity and…

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