AI-driven cybersecurity spending boom lifts software sector outlook

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AI-driven cybersecurity spending boom

Highlights

Attacks by AI-enabled adversaries surge 89% year over year according to CrowdStrike, with the average time to lateral movement dropping to 29 minutes.
Gartner forecasts the market for securing AI applications and infrastructure will grow 83% to $2.84 billion this year and reach nearly $7.7 billion in 2028.
The iShares Expanded Tech-Software Sector ETF (IGV) rises 5.2% on Monday as investor focus shifts from AI hardware to software and cybersecurity exposure.

AI threats drive defense demand

As reported by Weiss Ratings, AI is accelerating both the scale and speed of cyber threats, strengthening the case for higher spending on cybersecurity tools and services.

The commentary cites CrowdStrike's 2026 Global Threat Report, which says attacks by AI-enabled adversaries surge 89% year over year. It says the average time between an initial compromise and lateral movement into another system falls to 29 minutes, while the fastest attack observed takes 27 seconds.

The article also points to state-linked activity targeting U.S. telecommunications, critical infrastructure and water systems, arguing that AI-enhanced cyberwarfare is becoming a broader national and corporate security risk. That dynamic is likely to support demand for AI-powered defenses that can detect and respond faster than human operators can manage on their own.

Software and ETF exposure gain focus

Another growth area is emerging around the protection of AI systems themselves, including models, enterprise large-language model deployments and AI software supply chains. The article says companies increasingly need cybersecurity not only to defend existing networks, but also to secure newly deployed AI applications and infrastructure.

Gartner estimates the market for securing AI applications and infrastructure grows 83% this year to $2.84 billion, then rises another 69% to $4.78 billion in 2027 and reaches nearly $7.7 billion in 2028. That outlook suggests a rapid expansion phase for vendors exposed to AI governance, safety and enterprise software.

Weiss Ratings highlights the iShares Expanded Tech-Software Sector ETF, ticker IGV, as a broad way to capture that theme rather than selecting individual winners. It says the fund holds cybersecurity companies including Palo Alto Networks, CrowdStrike and Fortinet, alongside larger enterprise software groups, and notes IGV jumps 5.2% on Monday as investor interest rotates from AI hardware toward software tied to security and management.

Our earlier coverage of the late push for U.S. AI regulation ahead of Congress’s recess explained how warnings from leaders at Anthropic, OpenAI and xAI intensified bipartisan pressure for tighter guardrails, including calls for a coordinated slowdown in model releases. It also highlighted the unusual cross-party alignment around AI oversight, alongside a Republican split as Donald Trump resisted stricter rules while other lawmakers pressed for tougher limits despite no near-term consensus.

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