UK businesses are spending heavily on AI and cybersecurity despite fear that new tech could expose new cyber risks

Date:
Mon, 01 Jun 2026 10:09:49 +0000

Description:
Businesses are worried about geopolitical tensions, so they're spending more on cybersecurity to protect themselves from cyberattacks.

FULL STORY ======================================================================Copy link Facebook X Whatsapp Reddit Pinterest Flipboard Threads Email Share this article 0 Join the conversation Follow us Add us as a preferred source on Google Newsletter Subscribe to our newsletter Most businesses plan to spend more on AI, cybersecurity and general investments AI and geopolitical
tensions are raising cyberattack concerns across the board Many businesses worry they may have to scale back investments One in five business leaders
now worry that they may have to pause investments amid geopolitical uncertainty, however for the time being, investment remains high.

In fact, the latest Barclays data shows that Britain's bigger firms have increased longer-term borrowing, suggesting that they plan to continue investing in technology. Around two-thirds (68%) plan to increase cybersecurity investments over the next year, with cloud, cyber and AI accounting for a joint 44% of planned tech budgets over the next 12 months. Latest Videos From You may like New study claims firms are ready to spend big on AI, but are afraid to take the first step AI-driven cyber discovery
signals a new era of systemic risk for banks Record number of UK businesses hit by nation state attacks as attackers weaponize AI AI investments continue despite ongoing concerns Barclays found that more than half (52%) of
companies have seen productivity benefits from AI, including administration, decision-making and affording more time to high-value work. This comes as three-fifths (61%) now use agentic AI in their workflows.

However, while the outlook remains generally positive, business leaders do have some concerns over ongoing geopolitical tensions four in five report a negative impact from the Middle East conflict already.

Barclays UK Corporate Bank CEO Matt Hammerstein explained that "uncertainty has become the norm" for businesses across the UK now, noting that the response has not been as expected:

"Rather than pulling back entirely, many are adapting to this new reality by tightening financial discipline, managing cash carefully and prioritising investment where it strengthens resilience, productivity and long-term competitiveness." Are you a pro? Subscribe to our newsletter Sign up to the TechRadar Pro newsletter to get all the top news, opinion, features and guidance your business needs to succeed! Contact me with news and offers from other Future brands Receive email from us on behalf of our trusted partners
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With larger companies already having gone in hard on AI, the banking giant also found that Britain's SMEs are now starting to invest in the tech. 24% of small businesses say they've increased cybersecurity budgets in 2026 compared with 36% of larger firms, and even some micro businesses (4%) are starting to see the importance.

Looking ahead, the bank is observing smaller companies building up cash buffers and reserves in order to start focusing investment in AI and
security. Follow TechRadar on Google News and add us as a preferred source to get our expert news, reviews, and opinion in your feeds.



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Link to news story: https://www.techradar.com/pro/uk-businesses-are-spending-heavily-on-ai-and-cyb ersecurity-despite-fear-that-new-tech-could-expose-new-cyber-risks


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