AI has emerged as the top agenda item for cybersecurity leaders in India when it comes to budget allocation, addressing cyber talent shortages, and strengthening defence capabilities over the next 12 months, according to PwC’s 2026 Global Digital Trust Insights survey. The India edition is based on responses from 138 executives out of a global pool of 3,887 business and technology leaders surveyed between May and July 2025.

Less than or roughly half of organisations say they are “very capable” of addressing critical vulnerabilities such as unpatched software updates (57 per cent), weak authentication and access controls (55 per cent), lack of visibility into endpoints (55 per cent) and supply chain risks (52 per cent). Vulnerable connected products and devices (49 per cent), insufficient network architecture (48 per cent) and legacy systems (45 per cent) remain among the weakest areas identified.

Cyber budgets are set to rise, though at a more measured pace. This year, 87 per cent of leaders of Indian organisations expect their cyber budgets to grow, with nearly one-third planning to increase spending by more than 10 per cent. While this is a slight dip from last year’s 93 per cent, it reflects continued emphasis on strengthening security capabilities amid an expanding threat landscape. Just over one-third (38 per cent) expect budgets to rise by 6–10 per cent.

Investment in AI (46 per cent) is the top budget priority for the next 12 months, ahead of cloud security (33 per cent) and cyber managed services (28 per cent), as rapid advances in AI reshape digital defence. Among AI-linked capabilities, 60 per cent of security leaders are prioritising AI threat-hunting tools, while nearly 47 per cent are focusing on agentic AI.

More organisations are quantifying cyber risk, with half reporting they now measure financial impact to a significant or large extent. Nearly 25 per cent of businesses say their most damaging data breach in the past three years cost them at least US$1 million, with exposure highest among enterprises generating US$5 billion or more in revenue (45 per cent).

Talent shortages continue to weigh on cyber readiness. Over half (60 per cent) cite lack of knowledge in applying AI for cyber defence, and 50 per cent point to skill shortages as the biggest internal challenges in implementing AI-led safeguards over the past 12 months.

Business responses include prioritising AI and machine learning tools (61 per cent), cyber tool consolidation (51 per cent), security automation (49 per cent) and employee upskilling or reskilling (49 per cent).

The skills challenge extends into operational technology and industrial IoT, where 55 per cent of leaders cite a lack of qualified personnel as a top barrier.

Quantum threats also remain a concern. While quantum technologies are among the least-prepared-for risks, trailing only third-party breaches (18 per cent), ransomware (13 per cent), cloud-related threats (12 per cent) and attacks on connected products (8 per cent), nearly 40 per cent of organisations have not considered or begun implementing quantum-resistant security measures due to limited understanding, internal constraints and competing priorities.

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