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KPMG: Cybersecurity spending rises as attacks increase

cyber security
Cybersecurity is a growing concern.

Security organizations are almost universally boosting their cybersecurity budgets, and with good reason.

An overwhelming 99% of surveyed C-suite and senior-level security executives plan to increase their cybersecurity budgets over the next two to three years, and 98% have increased their cybersecurity spending in the past 12 months.

Results of the 2025 KPMG Cybersecurity Survey, which polled more than 300 security executives, also showed 83% of respondents reported a rise in cyberattacks. These incidents included a range of security events, such phishing and ransomware as well as more advanced artificial intelligence-based social engineering attacks.

[READ MORE: Ransomware gang takes credit for hacking Belk in May 2025, report says]

With 99% of respondents planning to increase cybersecurity budgets in the next few years, more than half (54%) are planning for increases of 6% to 10%, even as 52% cite competing priorities for security budget allocation such as data security and privacy, identity and access management, and cloud security. 

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The survey also revealed some specific cybersecurity trends relating to AI and HR:

AI

While only 38% of respondents cited AI-powered attacks as a major challenge in the next two to three years, 70% are already dedicating more than 10% of their budgets to AI-related cybersecurity initiatives, and 58% dedicate more than 15%.  

Respondents also said that the areas where AI will have the greatest cybersecurity impact are proactively identifying and stopping threats with fraud prevention (57%), predictive analytics (56%), and enhanced detection (53%).

HR

More than half (53%) of respondents cite a lack of qualified candidates as a high-impact cybersecurity challenge. Responses to this situation include increasing compensation (49%), boosting internal training (49%), and relying more on external partners (25%) including managed security service providers to fill critical talent gaps.

"The data doesn't just point to steady growth; it signals a potential boom," said Michael Isensee, cybersecurity & tech risk leader, KPMG LLP. "We're seeing a major market pivot where cybersecurity is now a fundamental driver of business strategy. Leaders are moving beyond reactive defense and are actively investing to build a security posture that can withstand future shocks, especially from AI and other emerging technologies. This isn't just about spending more; it's about strategic investment in resilience."

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