US SMBs keep cybersecurity automation despite budget strain

Tech.co found that 19% of US small and medium-sized businesses automate cybersecurity, even as 9% reassess their technology spending.

Use of automated cybersecurity slipped by one percentage point between February and March, a smaller decline than in several other business functions where automation fell more sharply.

Across the wider technology landscape, businesses appear to be taking a more cautious approach to new tools. In the survey, 45% of US SMBs said they regretted a technology shift made in the past 12 months, suggesting companies are becoming more selective about where they spend on automation and AI.

Cost pressure appears to be a central factor. Inflation was the main challenge for 28% of SMBs in March, adding pressure to operating budgets and forcing companies to weigh which technology investments deliver a measurable return.

That may help explain why cybersecurity has held up better than other uses of automation. Businesses often treat security as a core expense because of the potential financial damage from attacks and breaches, rather than as an optional productivity tool.

Tech.co cited industry data showing that AI can reduce the average cost of a data breach by USD $1.9 million. For smaller businesses with tighter resources, that potential saving may make automated defences easier to justify even as wider technology budgets come under review.

Selective spending

The survey also found that 31% of US SMBs identified optimisation as their main strategic focus in March. That points to an environment in which companies are not abandoning automation altogether, but concentrating investment on areas more directly tied to cost control, risk management, and operational resilience.

By contrast, other uses of automation recorded steeper declines over the same period. Data analysis dropped by eight percentage points, scheduling and calendar management fell by six points, and design tasks declined by five points.

The comparison suggests SMBs are drawing clearer distinctions between tools that improve convenience and those seen as necessary to protect the business. In that context, cybersecurity appears to be retaining support even as enthusiasm fades elsewhere.

A separate survey cited by Tech.co, from Expert Market, found that nearly half of US small to medium-sized businesses regretted changing technology in the past year. That adds to evidence that many companies are reassessing moves made during a period of rapid uptake in AI and automation tools.

Security priority

The Tech.co research was based on a survey of 300 US respondents. Participants were C-level, executive, and owner-level professionals at businesses with fewer than 500 employees.

The figures offer a snapshot of how smaller companies are balancing spending pressure against exposure to cyber risk. While broader AI adoption appears to be cooling in some day-to-day business functions, cybersecurity remains comparatively resilient.

Jack Turner, editor at Tech.co, said the intensity of the threat environment may help explain that resilience.

"It's reassuring to see that while Tech.co's latest data shows a decline in AI adoption in certain business areas, cybersecurity has remained constant. With the unrelenting security attacks that businesses face, especially in the age of AI, this is one aspect that firms literally cannot afford to neglect.

With inflation putting pressure on businesses to save money wherever possible, and leading to optimization, security spend must be seen as a priority, especially when the average cost of a data breach is $1.9 million," Turner said.