Riding the Wave of Surging Cybersecurity Stocks: Is it Worth Investing?

Amid the accelerated shift towards artificial intelligence and cloud computing in the technological revolution, cybersecurity stocks are worth paying attention to. Meanwhile, buzz surrounding artificial intelligence also is driving investor interest in cybersecurity stocks.

Research firm Gartner has updated its forecast for corporate spending on cybersecurity. The research firm sees a 14% rise in 2024 to $215 billion. That's up from its earlier forecast for 11% growth. And, that's better than most information-technology spending categories.

Here are the skyrocketing cybersecurity stocks to watch:

Consumers are increasingly concerned about the misuse of their personal data, with 42% expressing concerns in a 2022 Statista survey. Generative AI tools like chatbots are being widely adopted, with 73% of respondents using them for work according to a 2023 Statista marketing report. However, businesses must be aware of how generative AI impacts data privacy and take precautions to prevent exposing customer information unintentionally. Generative models can replicate copyrighted data, reveal confidential conversations, or propagate biases if not developed responsibly. Transparency and regulation around the use of generative AI in marketing and advertising are in high demand, with 94% of those polled indicating they want more in a 2023 StoryStream survey.

Amit Sood, CTO and head of product at US-based Simplr, a customer service outsourcing platform provider, highlights the importance of protecting customer data for AI practitioners. He emphasizes that while chatbots can enhance customer experiences, exposing customer data should never be an option. There are no standards or protocols in place when feeding personal data into chatbots, heightening the risk of privacy issues or potential phishing schemes. Effective guardrails protect both companies and customers from these incidents.

Therefore, as organizations continue to rely more heavily on AI and digital platforms, investing in robust AI cybersecurity measures has become essential for strategic business success. This is because cybersecurity underpins customer trust, which is crucial for online interactions and transactions in an AI-driven digital ecosystem. However, effective AI cybersecurity must balance user experience with robust security measures in order to enhance both customer satisfaction and safety. In sum, investing in AI cybersecurity is key to building customer trust and achieving strategic success in today's digital landscape.