Australian organisations are accelerating AI‑enabled cybersecurity, with three in four planning budget increases over the next 12 months as AI becomes their top priority, according to new research released by PwC Australia.
Surveying over 100 Australian businesses and tech leaders, the 2026 Digital Trusts Insights report found organisations are increasingly concerned about AI-powered cyberattacks.
AI investment drives cybersecurity innovation
Over half of Australian organisations expressed concern about AI-driven malware and supply chain attacks, reflecting the global escalation in malicious AI use. This is leading to AI being the largest priority in cyber budgets over the next 12 months, with 37% of organisations saying AI is their top priority.
The research found organisations have been challenged by a lack of knowledge in the application of AI for cyber defence, prompting organisations to prioritise training in AI and machine learning, and to upskill and reskill cyber teams to address cyber talent gaps over the next 12 months.
PwC Australia Cybersecurity and Privacy Partner Robert Di Pietro said that AI has brought a new dimension to cybersecurity across the globe: “AI is transforming cybersecurity across the world. The integration of AI into cybersecurity is a double-edged sword with adversaries experimenting with AI-powered cyberattacks, while Australian organisations are leaning in and investing in skills and responsible AI to strengthen defences and build digital trust.”
“It is important Australian companies stay vigilant and proactive in leveraging AI to strengthen their security systems, while also understanding the new risks brought about by AI technology.”
Addressing Cyber Skills Shortages and Rising Budgets Signal Commitment
Cyber skills deficits remain a concern for tech leaders, with a lack of knowledge in the application of AI for cyber defence and lack of relevant skills being the top two challenges for organisations over the last 12 months when implementing AI for cyber defence.
Mr Di Pietro added: “The survey found 50% of organisations will focus on upskilling and re-skilling over the next 12 months to fill critical cyber skills gaps, and over half of respondents will prioritise AI event detection and behavioural analytics. This differs from the global trend, where companies are prioritising AI threat hunting.”
Nearly 75% say their cyber budget will increase over the next 12 months, and only 13% of organisations are expecting their cyber budgets to decrease in 2026 – more than double the global average of 6%.
The survey revealed that while nearly half of Australian leaders are prioritising spending on improvements in preparedness, only 35% are prioritising data protection and trust, compared to 44% globally.
“Sustained and strategic investment in cyber capabilities is essential to defend against emerging threats, especially as we see an increased prevalence of threats caused by artificial intelligence and quantum computing,” said Mr Di Pietro.
“As companies continue to deal with a growing list of cyber risks, the findings underscore the need for Australian organisations to accelerate their investment in data protection strategies to keep pace with global security standards and reduce vulnerabilities.”
A Unique Australian Concern: Quantum Computing
Australian organisations are uniquely concerned about the growing risks associated with quantum computing, with 33% identifying it as a major threat – higher than the 26% global average. While only 19% of local business and tech leaders are worried about data poisoning, a critical vulnerability amplified by the integration of enterprise AI tools into business operations.
Mr Di Pietro concluded: “The 2026 Digital Trust Insights survey underscores the critical need for Australian organisations to elevate their cybersecurity strategies by strengthening the foundations – including data governance and digital identities – to enable safe and secure adoption of emerging technological threats such as quantum computing and AI-driven attacks.”
You can read the full report here.
