Vishal Salvi, the chief executive of the domestic cybersecurity firm Quick Heal Technologies, emphasized in an interview with Mint that, on average, “AI has the potential to reduce the manpower cost for a cybersecurity company by 30-40%. While the impact of this decrease in cost is not a straightforward 1:1 correlation, it is evident that AI is driving significant reductions in the per-unit cost of cybersecurity software as the technology continues to scale and mature.”
Businesses are already witnessing tangible advantages in this domain. Karon Shaiva, the managing director of the Mumbai-based micro, small, and medium enterprise (MSME) Idobro Impact Solutions, remarked, “For small companies, the cybersecurity outlay is less than 1% of net expenditure, but this is also reflective of the declining cost of security services. This scaling down is largely attributed to the efficiency enhancements provided by AI in cost management.”
This shift is crucial, Shaiva added, noting that “it becomes very difficult for small enterprises to withstand the financial, operational, and reputational fallout in the unfortunate event of a cyberattack.”
The significance of such disruptions became increasingly evident in July, when a faulty update from content distributor CrowdStrike resulted in a widespread outage of IT hardware, underscoring the pressing necessity for even small businesses to partner with managed cybersecurity service providers to safeguard against such risks.
In August, a comprehensive report by Gartner projected a notable increase in cyber expenditure in India, estimating a rise of 17%—from $2.9 billion this year to $3.4 billion next year. Managed cybersecurity providers, which are harnessing AI to streamline costs, are anticipated to experience dramatic growth, projected at 42% in India.
Managing costs
It is worth noting that cybersecurity firms have continually leveraged AI to identify new vulnerabilities and automate numerous services essential for security. Managed service providers, to whom businesses outsource their cybersecurity operations, have previously been high-cost ventures due to the expensive resource requirements of skilled cybersecurity engineers. The recent adoption of AI and automation in critical services, such as threat alert systems, is proving invaluable for cost-sensitive micro, small, and medium enterprises (MSMEs) looking to enhance their cyber resilience.
This aspect is particularly important because MSMEs play a vital role as vendors and suppliers to India’s larger industrial conglomerates. Akshat Jain, cofounder and chief technology officer of the cybersecurity firm Cyware, elucidated, “Large enterprises typically engage with hundreds of suppliers and vendors who have approved access to their systems, making MSMEs security-critical to safeguarding the broader ecosystem. Protecting MSMEs is not merely about their own resilience—it is also about averting potential compromises that could adversely affect larger enterprises.”
Apurva Gopinath, deputy vice-president of risk management at the insurance and consulting firm Aon, further emphasized that certain industries are more sensitive to these changes. “The BFSI sector faces stringent regulations, while the healthcare sector, due to rapid digitization, is another key industry where the adoption of cybersecurity is accelerating swiftly,” she stated.
Using cybersecurity for MSMEs
The initial uptake of heightened cybersecurity measures, propelled by lower costs, is increasingly on the rise. Ravindra Baviskar, director of sales engineering at the UK-based cybersecurity firm Sophos, noted that MSMEs are “implementing firewalls, adopting endpoint protection tools, and conducting regular hygiene checks to comply with industry standards.”
“While the adoption of cybersecurity platforms among MSMEs may not match the extent seen in larger enterprises, they are at least beginning to outsource the essential minimum today. After all, it is critical to recognize that cyberattacks do not discriminate by company size,” he added.
The global trend of AI-driven cybersecurity adoption also highlights affordability. IBM’s annual ‘Cost of a data breach’ report from July revealed that organizations employing AI in their cybersecurity strategies saved approximately $2.2 million annually, compared to those that did not implement such technologies.
Lalit Kalra, partner for cybersecurity at consultancy firm EY India, corroborated IBM’s findings, stating, “The price reduction of cybersecurity services, driven by AI, very much depends on the specific solutions incorporated. Organizations that traditionally expend over $500,000 (₹4 crore) annually on governance, risk, and compliance can experience a staggering 70% reduction in costs when they choose platforms enabling customized service selection.”
In overall terms, Kalra, who advises multiple enterprises on cybersecurity best practices, reported that MSMEs have markedly increased their cybersecurity spending by 60% this year compared to 2023.
Beyond just cost, AI technologies are also empowering businesses to respond to breaches in a timelier manner. “Organizations that employed security AI and automation extensively detected and contained incidents, on average, 98 days faster than organizations that did not utilize these transformative technologies,” the IBM report articulated.
Explaining the rationale behind AI’s profound impact on making cybersecurity accessible for small businesses, Katya Ivanova, chief sales officer of the Switzerland-based cybersecurity firm Acronis, explained, “Instead of relying on an engineer to manually analyze logs, comprehend the cyber threat, and devise a solution, AI automates this process. It generates a concise summary of the threat in the form of a report and compiles relevant data for future reference, thus enhancing the overall efficiency of cybersecurity measures.”
How does Quick Heal Technologies plan to adapt its services in response to the increasing reliance on AI in the cybersecurity industry?
**Interview with Vishal Salvi, CEO of Quick Heal Technologies**
**Interviewer:** Thank you for joining us today, Vishal. You’ve mentioned that AI can significantly reduce manpower costs for cybersecurity firms. Can you elaborate on how this reduction impacts your operations?
**Vishal Salvi:** Sure, happy to be here. AI has the potential to reduce manpower costs by 30-40%. This isn’t just about cutting jobs; it’s about reallocating resources to higher-level strategic tasks. The enhanced efficiency allows us to lower the per-unit cost of our cybersecurity software, which in turn benefits our clients through more affordable services.
**Interviewer:** That’s interesting. Karon Shaiva from Idobro Impact Solutions highlighted that small companies typically spend less than 1% of their net expenditure on cybersecurity. Why is this so low, and what does this mean for those businesses?
**Vishal Salvi:** That’s a crucial point. For many MSMEs, the limited spending reflects both their budget constraints and the declining costs of security services, largely due to AI enhancements. However, maintaining low expenditure can be a double-edged sword. If a cyberattack occurs, the financial and reputational damage can be devastating. Small enterprises must recognize that investing in cybersecurity is not just an expense but a necessary safeguard for their operations.
**Interviewer:** You referenced a significant cybersecurity crisis with CrowdStrike that highlighted the threat landscape. How can partnerships with managed cybersecurity service providers help small businesses mitigate these risks?
**Vishal Salvi:** Managed service providers bring specialized expertise and resources that tiny firms may not have in-house. These partnerships help businesses proactively manage threats and ensure compliance with industry standards, making them more resilient. The cost-effectiveness of AI-driven solutions means even smaller enterprises can access advanced cybersecurity measures.
**Interviewer:** Gartner’s projections indicate a substantial increase in cyber expenditure in India
