Security budgets rise while shadow AI escapes oversight

Companies are increasing cybersecurity spending without closing critical gaps in AI oversight, according to security vendor DNSFilter. Three-quarters of the 400 IT and cybersecurity workers surveyed said their budgets had increased over the past 12 months. Four in 10 respondents said their next dollar would go toward AI security and governance, making it the leading spending priority ahead of cloud security.

Unapproved AI connections remain a persistent risk. Nearly half (46%) of respondents said they were confident that unauthorized AI apps were connected to their companies’ systems, while one-fifth said an unapproved AI integration had caused a cybersecurity incident. Thirty-seven percent said they discover employees’ AI app connections only after they happen, and another seven percent said employees face no requirement to notify IT departments.

Security teams also lack confidence in their existing defenses. Sixty-two percent of respondents were unsure whether all their security tools were properly configured, and the same percentage could not confirm that every tool was actively monitored. DNSFilter warned that increased spending must be paired with stronger technical controls, employee policies and centralized management. Buying governance policies does not ensure organizations can see or control the tools connecting to corporate data.