In a striking shift observed in 2025, Chief Information Security Officers (CISOs) are now directing a full 40% of their cybersecurity budgets toward software-based defenses, surpassing both personnel and hardware spending, as enterprises grapple with AI‑driven threats that execute within milliseconds—far faster than traditional detection systems. This trend stems from the urgency to counter generative AI–powered phishing and deepfake attacks, which exploit speed and personalization at scale, prompting organizations to bolster real‑time AI protections to stay ahead of adversaries.
Sources: VentureBeat, BeamStart
Key Takeaways
– Real‑Time AI Defenses Are Vital: With cyberattacks using generative AI executing in mere milliseconds, enterprises must invest heavily in software solutions that can defend at that velocity.
– Inference‑Layer Vulnerabilities Are Costly: Many AI-based runtime attacks are inflating total cost of ownership by targeting the operational phase of AI systems, making defense more expensive than initially expected.
– Budget Priorities Are Shifting: The reallocation to software (40%) over traditional spending categories like personnel, hardware, and outsourcing underscores a broader rethinking of cybersecurity resource allocation.
In-Depth
As we roll into 2025, a clear and cautious recalibration of cybersecurity spending is under way. CISOs are now placing nearly half of their security budget—40%—into software-based defences. That’s a marked shift from previous years when hardware, personnel, or outsourcing dominated the ledger. This move reflects a pragmatic response to the realities of modern threats, notably the explosive rise of generative AI–mediated attacks that operate with breakneck speed beyond the reach of conventional security layers.
What’s especially noteworthy is the unfolding challenge at the AI inference layer—the stage where AI models serve real‑time outputs in production. Here, attackers exploit vulnerabilities that software–based solutions must now counteract in real-time—not minutes or hours, but in milliseconds. This dynamic has turned inference into a battlefield where defenses must be equally agile, or risk high operational and compliance costs. As reported, “runtime attacks… quietly inflating budgets, jeopardizing regulatory compliance and eroding customer trust,” underscoring the stark fiscal impact of emergent AI threats.
The uptick in software spending isn’t arbitrary. Organizations are doubling down on tooling that offers real-time alerting, automated response, and behavior-based defenses—fundamentally bolstering their resilience. It’s pragmatic to invest more in software capable of scaling defenses, especially in a landscape where attackers can launch deepfake frauds and personalized phishing at unprecedented rates.
There’s also a silent narrative here: as software spending eclipses traditional budget lines, the role of security professionals is evolving, placing more emphasis on strategic tool integration and policy governance. Ensuring that these tools are implemented with discipline—without multiplying complexity or introducing new attack surfaces—is a growing boardroom concern.
In short, the CISO playbook is revising itself. By elevating software as the backbone of defense, leaders are acknowledging that the speed of defense must now meet the speed of offense. It’s a measured and forward-looking pivot, one that may well determine resilience in an age defined by AI.

