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

Cybersecurity ensures data protection on internet. Data encryption, firewall, encrypted network, VPN, secure access and authentication defend against malware, hacking, cyber crime and digital threat — (Image credit: Shutterstock)

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.

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."

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.

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With several years’ experience freelancing in tech and automotive circles, Craig’s specific interests lie in technology that is designed to better our lives, including AI and ML, productivity aids, and smart fitness. He is also passionate about cars and the decarbonisation of personal transportation. As an avid bargain-hunter, you can be sure that any deal Craig finds is top value!

AI investments continue despite ongoing concerns

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