Among AI-driven cybersecurity segments, network security saw the most significant expansion last year, accounting for nearly 40% of total AI security revenues. AI-enhanced intrusion prevention systems and next-generation firewalls leverage machine learning models to inspect vast streams of traffic, distinguishing malicious behavior from legitimate activity. These solutions can automatically quarantine suspicious connections, adapt to novel malware variants, and provide security teams with prioritized alerts—reducing mean time to detection from days to mere minutes. As more enterprises adopt zero-trust architectures, AI’s role in continuously verifying device and user behavior on the network has become a cornerstone of modern defensive strategies.
Endpoint security followed closely, representing roughly 25% of the AI cybersecurity market in 2024. AI-powered endpoint detection and response (EDR) platforms monitor processes, memory activity, and system calls on workstations and servers. By correlating telemetry across thousands of devices, these platforms can identify subtle indicators of compromise—such as unusual parent‑child process relationships or command‑line flags—before attackers achieve persistence. The rise of remote work has only heightened demand: with employees connecting from diverse locations and personal devices, AI’s context-aware threat hunting capabilities help maintain comprehensive visibility across decentralized environments.
Identity and access management (IAM) solutions incorporating AI now capture about 20% of the market. Behavioral analytics engines analyze login patterns, device characteristics, and geolocation data to detect risky authentication attempts. Rather than relying solely on static multi‑factor prompts, adaptive authentication methods adjust challenge levels based on real‑time risk scores, blocking illicit logins while minimizing friction for legitimate users. This dynamic approach addresses credential stuffing and account takeover attacks, which accounted for over 30% of cyber incidents in 2024.
Cloud security, covering roughly 15% of the AI cybersecurity spend, is another high‑growth area.
With workloads distributed across public, private, and hybrid clouds, AI-driven cloud security posture management (CSPM) tools continuously scan configurations and user activities for misconfigurations, vulnerable APIs, and data‑exfiltration attempts. Automated remediation workflows can instantly correct risky settings, enforce encryption policies, and isolate compromised workloads—ensuring compliance with evolving regulations such as GDPR and CCPA.
Looking ahead, analysts predict the AI in cybersecurity market will exceed $60 billion by 2028, as vendors integrate generative AI for automated playbook creation and incident response orchestration. Organizations that invest in AI‑powered defenses will gain a competitive edge, enabling proactive threat hunting and resilient operations against a backdrop of escalating cyber‑threat complexity.
