As AI adoption accelerates and Big Tech ramps up spending on AI infrastructure, demand for cybersecurity solutions is expected to rise alongside it. Greater AI integration increases the need for robust digital protection, positioning cybersecurity as a critical pillar of the expanding AI investment cycle.

In many ways, AI and cybersecurity are inseparable components of the modern digital economy as one cannot scale securely without the other. Moreover, cyber threats persist regardless of market conditions, making cybersecurity a relatively resilient investment theme across both bull and bear markets.

The S&P Kensho Cyber Security Index, which tracks companies with significant exposure to cybersecurity-related activities, has gained 19.13% so far this quarter, 8.4% year to date and 10.52% in this month alone. The strong performance reflects growing investor interest and sustained capital flows into the cybersecurity space.

With AI-related capital spending projected to surpass $1 trillion by 2027, the risk and sophistication of cyberattacks are expected to rise in parallel. As companies accelerate AI integration, hackers are increasingly leveraging AI to develop more advanced and scalable cyberattack strategies, making AI expansion and cybersecurity demand two sides of the same coin. This growing need for digital defense could create compelling long-term opportunities for investors seeking exposure to the sector.

Accelerating Threat of AI-Driven Cybercrime

According to Lee Klarich, the tech chief of Palo Alto Networks, companies are rapidly running out of time to strengthen their software defenses as cybercriminals increasingly use AI to identify and exploit vulnerabilities at scale, as quoted on a CNBC article. The cybersecurity firm now estimates that companies have just a three-to-five-month window to strengthen defenses before AI-driven cyberattacks become commonplace, reinforcing the urgency around cybersecurity preparedness.

As per the abovementioned article, Klarich emphasized the need for a coordinated industry effort to combat evolving cyber threats, including broader adoption of virtual patching solutions. The rapid advancement of AI models like Anthropic’s Mythos is raising concerns across the cybersecurity industry, with experts warning of a potential surge in attacks exploiting undiscovered software vulnerabilities.

Google Sounds Alarm on the Rise of AI-Driven Cybercrime

The rising danger of AI-enabled cybercrime came into focus after Google disclosed that it had prevented hackers from using AI models to coordinate a mass vulnerability exploitation effort. As quoted on another CNBC article,  findings from Google’s Threat Intelligence Group suggest cybercriminals are increasingly turning to AI tools like OpenClaw to exploit software flaws more efficiently and at greater scale.

Google also warned that hackers are rapidly advancing AI-enabled cyberattack techniques. According to the company, as quoted on Reuters, cybercriminals recently used artificial intelligence to identify a previously unknown software vulnerability and develop an exploit for it, marking a significant escalation in AI-assisted hacking capabilities. Google warned that hackers are increasingly using AI to automate cyber operations, uncover software vulnerabilities and assist in malware creation.

As quoted on the abovementioned Reuters article, according to Google Threat Intelligence Group, cybercriminals and state-linked hacking groups are already experimenting with AI-driven attack workflows, a trend that could accelerate sophisticated cyber campaigns by reducing the time and expertise needed to launch them.

Anthropic’s Mythos Shows Why AI and Cybersecurity Go Together

Concerns surrounding Anthropic’s Claude Mythos underscore the risks accompanying the rapid rise in AI investment and adoption. According to CNBC, governments, financial institutions and technology giants are increasingly scrutinizing the risks linked to Mythos, an AI model said to be powerful enough to uncover hidden vulnerabilities across global software infrastructure.

The development underscores a growing cybersecurity gap, as AI accelerates the discovery of software flaws far faster than companies can patch them. Per researchers quoted on the abovementioned CNBC article, although companies such as Anthropic and OpenAI are working to build stronger AI-driven cyber defense capabilities, offensive applications currently appear to hold the upper hand. Echoing these concerns, Jamie Dimon recently remarked that while AI could eventually strengthen cybersecurity defenses, it is currently increasing corporate vulnerability to cyberattacks in the near term.

ETFs to Invest in Cybersecurity

Demand for cybersecurity spending continues to rise, reinforcing the sector’s appeal as a compelling long-term investment opportunity. The sector’s long-term outlook is also being reinforced by the rising importance of cyberwarfare in an increasingly fragile geopolitical environment, as conflicts extend beyond traditional battlefields into the digital domain.

Below, we have highlighted a few ETFs that offer investors an opportunity to tap into this fast-growing sector.

First Trust NASDAQ Cybersecurity ETF(CIBR Quick QuoteCIBR - Free Report) , Amplify Cybersecurity ETF (HACK Quick QuoteHACK - Free Report) , iShares Cybersecurity & Tech ETF (IHAK Quick QuoteIHAK - Free Report) , Global X Cybersecurity ETF (BUG Quick QuoteBUG - Free Report) , WisdomTree Cybersecurity Fund (WCBR Quick QuoteWCBR - Free Report) and Themes Cybersecurity ETF (SPAM Quick QuoteSPAM - Free Report) can be considered.

With a one-month average trading volume of about 1.51 million shares, CIBR is the most liquid option. CIBR has also gathered an asset base of $11.32 billion, the biggest among the mentioned options. Regarding charging annual fees, charging 0.35%, SPAM is the cheapest option and is more suitable for long-term investing.