68% of UK Firms to Boost Cyber Spending Amid AI Threats
▼ Summary
– 68% of UK business leaders plan to increase cybersecurity spending over the next 12 months, driven by AI adoption and geopolitical uncertainty.
– Fewer than 30% of businesses are confident in their ability to respond to a major cyber incident, and large firms have increased cybersecurity investment faster than small or micro businesses.
– Average cybersecurity spending among decision makers has reached £505,000 in 2026, with top concerns including loss of sensitive data (33%), customer trust damage (28%), and operational disruption (27%).
– 61% of UK businesses now proactively use agentic AI, and 52% report that AI and automation have improved productivity.
– Cloud, cyber, and AI account for 44% of planned technology budgets over the next year, but 26% of firms worry about AI output accuracy and 24% about data security risks.
A significant shift is underway in UK boardrooms, with 68% of businesses planning to boost cybersecurity spending over the next twelve months. This surge in investment is being driven by the rapid adoption of artificial intelligence and rising geopolitical tensions, which are fundamentally reshaping technology budgets across the country.
The Q1 2026 Barclays Business Prosperity Index reveals that nearly half of business leaders (46%) believe emerging technologies are heightening their exposure to cyber threats. Despite this urgency, confidence remains low: fewer than three in ten firms feel equipped to handle a major cyber incident. Barclays notes that recent global instability has forced resilience to the top of the corporate agenda, prompting firms to reassess their spending priorities amid intensifying geopolitical risk.
Large enterprises are leading the charge. Over a third of big businesses have increased their cybersecurity budgets since the start of 2026, compared to just 26% of small firms and a mere 4% of micro businesses. Average cybersecurity spending among decision-makers has reached £505,000 ($680,000) so far this year, with large companies averaging £1.3 million ($1.75 million). In contrast, small businesses spend around £134,000 ($180,000), and micro businesses allocate just £15,000 ($20,000).
When asked about their biggest cyber-related fears, businesses cited several critical concerns. The loss of sensitive data or intellectual property tops the list at 33%, followed closely by damage to customer trust and confidence (28%), operational disruption or downtime (27%), and loss of revenue (26%).
Matt Hammerstein, CEO of Barclays UK Corporate Bank, observed that UK businesses now operate in an environment where “uncertainty has become the norm.” However, he emphasized the resilience of the corporate response: “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 long-term competitiveness.”
The index also highlights a rapid expansion of agentic AI across UK operations. A majority of firms (52%) report that AI and automation have improved productivity, while 61% are now proactively using agentic AI. Combined, cloud, cybersecurity, and AI account for 44% of planned technology budgets over the next year. Looking ahead, companies intend to deploy AI for data analysis and forecasting (38%), administrative automation (31%), customer experience (29%), and cybersecurity (29%).
Adoption is not without its challenges. A quarter of businesses (26%) worry about the accuracy and reliability of AI outputs, while 24% flag data security and cybersecurity risks as major concerns. Abdul Qureshi, head of Barclays Business Banking, noted that AI is beginning to offer “tangible opportunities” for small and medium-sized enterprises, particularly by improving productivity and streamlining routine tasks.
The findings are drawn from research among 1,000 senior business decision-makers, conducted by Opinium Research between April 17 and May 5, 2026, alongside a separate survey of 500 B2B leaders by Focaldata from April 27 to May 1, 2026.
(Source: Infosecurity Magazine)