Cybersecurity is on the rise not because it’s trendy, but because AI-threats are becoming increasingly harder to spot and defend against. CISO, security firms and analysts are all saying the same thing right now “AI is switching things up and nobody can afford to sit back and do nothing”.
By the end of 2025, AI threats had risen over 47% compared to the year before. Security leaders have witnessed AI reshape cyberattacks from manual operations to automated systems. Hackers are now using generative AI to write phishing emails, scan networks and continuously adapt attacks if detected.
This recent development has pushed executives to invest more in cybersecurity. Against systems that are constantly evolving, traditional systems won’t cut it anymore and companies should be more intentional with their security.
How AI is Reshaping Cybersecurity
Since 2024, AI has completely changed the speed and precision of cyberattacks. Attackers are using AI to generate hyper-realistic phishing content, clone voices and identities, hunt for vulnerable systems and impersonate people on live video.
Boston Consulting Group (BCG), wrote in their 2025 year end report that AI-driven threats are growing faster than traditional systems are equipped to handle. BCG also reported that about 60% of executives believe they have fallen victim to AI attacks with only 7% deploying defenses.
Furthermore, AI-enabled security breaches have caused multi-million dollar losses, operational disruptions, fines from regulatory bodies and are expected to evolve rapidly over the next two to three years.
A notable case is the Red Hat GitLab breach in October 2025. Hackers called the “Crimson Collective” stole 570GB of data from 28,000 repositories with APIs, VPN configurations and sensitive client data. AI tools were likely used to scan for weak setups in hours. This further proves BCG’s point that attacks are evolving faster than traditional systems can handle.
To strengthen their defense, executives are now employing the help of AI-powered defense tools like SentinelOne and DarkTrace to close the gap. DarkTrace uses machine learning to flag suspicious behaviour in real-time, spot AI-generated phishing or storage scan before the damage spreads while SentinelOne takes it further with autonomous threat detection and cutting breach response times by over 60%.
Even with all this, executives need to constantly evolve their defense if they want to stay ahead.
The Rise in Cybersecurity Funding and What Comes Next
In 2025, cybersecurity funding significantly increased as AI-driven threats forced company executives to take preventive measures. The world spent a record amount of $212 billion, which is about a 15% increase from 2024.
AI security startups raised more than $12 billion in venture capital with leading investors like Sequoia taking the charge by funding tools that detect threats in real-time. This surge is pushing CISOs and CEOs to allocate about 20-30% of IT spending to fighting the breaches causing millions of dollars in damages.
In addition, the increase in key acquisitions further emphasize this boom. SentinelOne raised $400M on a $9B valuation on autonomous defenses and Palo Alto Networks acquired five AI-based companies to create thorough platforms. Regulatory bodies are also increasing the strain on enterprises, forcing leaders to focus on adaptive systems, rather than rely on the old ones.
In order to close the 7% gap, hybrid solutions that involve human supervision and pair AI devices like Darktrace and zero-trust networks are essential. For a start, execute quarterly AI-simulated assaults, conduct vulnerability audits, and train personnel on deepfake techniques.
As AI threats increase, anticipate AI powering 80% of breaches by 2027. Organizations prioritizing funding, governance, and proactive defenses now will be able to secure their operations long-term.
