Cybersecurity spending looks recession-proof

The tech sector may be in a mini-funk of layoffs as belts tighten amid talk of possible recession. What’s not hurting much? The cybersecurity industry. Ransomware is the biggest reason.

Another is looming artificial intelligence tech. Cybercrooks and state-backed hackers can be expected to leverage AI to accelerate malicious code creation and automate its use.

That will surely increase the pace and scope of attacks, experts say.

Chief analyst Matthew Ball of the forecasting firm Canalys says businesses and other organizations simply can’t afford to cut back on cybersecurity spending. Many are still playing catchup after years of underinvestment that has driven the need for more robust countermeasures. Smaller businesses that can’t afford to keep up may suffer. Canalys predicts global cybersecurity spending will rise 13% this year to nearly $224 billion. That’s up from an estimated $130 billion in 2019. And it compares to the 2.4% increase in worldwide IT spending to $4.5 trillion that Gartner forecasts for 2023.

Ball says generative artificial intelligence – algorithms that create something new based on existing knowledge – will potentially spawn more sophisticated malware while new, less-skilled threat actors emerge. In short, the arms race already in progress will escalate.