Hospitals raise cybersecurity spend amid rising attacks, AI adoption

As cyber threats grow more advanced, hospitals are raising cybersecurity budgets, adopting AI-driven tools and preparing for stricter healthcare data regulations

With rising cyberattacks, major hospitals are now allocating 8–10 per cent of their information technology (IT) budgets to cybersecurity, nearly double the 4–7 per cent allocation in 2021, sector watchers said. These allocations are expected to rise further to 12–15 per cent by 2027, said Vineet Dhawan, chief executive officer of DCT Inc and dcafé. DCT Inc is an IT services company.

Dhawan added that the demand for artificial intelligence (AI)-driven cybersecurity tools, particularly AI-powered security information and event management platforms, has increased by 40 per cent year-on-year since 2023. 

“Nearly half of this demand is now coming from Tier-II and