Australian cybersecurity spending to reach AUD $6.2bn by 2025

Australian organisations are predicted to spend nearly AUD $6.2 billion on information security and risk management in 2025, marking a 14.4% increase from the previous year, according to recent projections from Gartner.

The largest portion of this spending is expected to remain with security services, including consulting, professional, and managed security services, which are forecasted to reach close to AUD $2.9 billion in 2025. This represents a 16.1% rise compared to 2024, highlighting the crucial role that security service providers occupy as they assist Australian entities in navigating the latest cybersecurity challenges amidst a persistent skills shortage.

This projection coincides with Gartner's ongoing research into the impacts of AI and generative AI (GenAI) advancements within the Australian cybersecurity landscape. Richard Addiscott, VP Analyst at Gartner, stated, "Generative AI (GenAI), and AI more broadly, will continue to impact the strategic objectives of Australian security and risk management leaders this year as they navigate its impact on cybersecurity. Coupled with the enduring challenges of an ever-evolving threat landscape, widening talent gaps and increasing regulatory oversight, their efforts are predominantly focused on enabling transformation and embedding resilience this year."

With the ongoing implementation of AI and GenAI technologies, investments in areas such as application security, data security and privacy, and infrastructure protection are growing steadily. Addiscott commented on this trend, "More than two years after the release of ChatGPT, the impact of GenAI and broader AI capabilities for Australian security leaders is real. As these capabilities compel organisations to transform their digital ambitions, it requires security leaders to adapt their cybersecurity roadmaps, focus on securing their organisation's AI adoption and experiment with AI in cybersecurity."

A Gartner global survey, polling over 3,186 CIOs and technology executives including 109 from Australia and New Zealand, found that 88% of ANZ respondents view cybersecurity as the predominant technology investment for 2025 for the second year running. This aligns with Gartner's prediction that 90% of successful AI deployments in cybersecurity by 2027 will be tactical — prioritising task automation and process enhancements over the replacement of roles.

Gartner has recommended that security and risk management leaders in Australia brace for the rapid and ongoing evolution of GenAI. New disruptions are anticipated from emerging AI applications, business and cybersecurity offerings, and potential adversarial uses of GenAI.