By now, the Artificial Intelligence (AI) Boom is known to all. While the success of OpenAI's GPT-4 – the advanced AI language model – has made the AI boom possible, it has both positive and negative cybersecurity implications. ChatGPT poses a new cybersecurity threat, particularly in the form of AI-generated phishing scams.

Hence, Cybersecurity leaders need to equip their IT teams with tools to detect AI-generated emails and train employees on cybersecurity prevention skills, while advocating for advanced detection tools and government oversight of AI usage in cybersecurity, per Harvard Business Review.

Recent cyberattacks on MGM Resorts and Caesars Entertainment have raised concerns about generative AI's potential to fuel ransomware attacks.No wonder, despite economic uncertainty, investment in cyber-resilience remains a top priority.

The global cybersecurity technology market grew by 11.6% year over year to $19.0 billion in Q2 of 2023. Palo Alto Networks led the market, followed by Fortinet, Cisco, CrowdStrike, Check Point, Okta, and Microsoft.

This alongwith a less-hawkish Fed made cybersecurity ETFs winners lately. Wisdomtree Cybersecurity Fund (WCBR Quick QuoteWCBR - Free Report) , Global X Cybersecurity ETF (BUG Quick QuoteBUG - Free Report) , Nasdaq Cybersecurity ETF (CIBR Quick QuoteCIBR - Free Report) and ETFMG Prime Cyber Security ETF (HACK Quick QuoteHACK - Free Report) – all touched a 52-week high on Nov 14, 2023.

Cybersecurity Spending to Grow in 2024?

Gartner has recently updated its forecast for corporate spending on cybersecurity, and the numbers are significant. In 2024, Gartner predicts a substantial 14% increase, pushing the total spending on cybersecurity to an impressive $215 billion.

This upward revision is more robust than previously anticipated, with an initial forecast projecting an 11% growth rate. This growth surpasses most other categories of information technology spending.

Cloud Security on the Rise

One notable area of growth in cybersecurity spending is in cloud security products and services. Gartner predicts a whopping 25% jump in spending in this category for 2024, reaching a total of $7 billion. This increase underscores the growing importance of securing cloud-based systems and data.

Gartner anticipates increased spending on cybersecurity services in 2024 to combat evolving threats effectively. CIOs are increasingly prioritizing cybersecurity, with 80% planning to boost spending on cyber/information security in 2024.

ETFs in Focus

Against this backdrop, below we highlight a few cybersecurity ETFs that could be tapped for further gains.

WisdomTree Cybersecurity Fund (WCBR Quick QuoteWCBR - Free Report) – Up 3.8% on Nov 14, 2023

Global X Cybersecurity ETF (BUG Quick QuoteBUG - Free Report) – Up 3.7%

First Trust NASDAQ Cybersecurity ETF (CIBR Quick QuoteCIBR - Free Report) – Up 3.2%

iShares Cybersecurity and Tech ETF (IHAK Quick QuoteIHAK - Free Report) – Up 3.1%

ETFMG Prime Cyber Security ETF (HACK Quick QuoteHACK - Free Report) – Up 2.6%