AI sharpens cat-and-mouse hacking battle as companies strengthen defences
XLK•Reported software and computer-system vulnerabilities nearly tripled to almost 37,000 in the third quarter of 2026, as companies increased investment in AI-powered cybersecurity tools. McKinsey projects the global market for cybersecurity products and services sold by outside vendors will grow from $223 billion in 2025 to $346 billion by 2029.
1. More flaws, faster attacks
Nearly 37,000 security flaws in software or computer systems were reported in the third quarter of 2026, triple the number a year earlier. Executives said AI is accelerating cyber threats and increasing pressure on companies to find and patch vulnerabilities quickly.
2. Companies boost defences
Ionos said it deployed AI-based monitoring and AI-assisted patching after a spike in vulnerabilities in July. Booking.com said hundreds of engineers were building AI-powered defence systems. Binance said it would increase investment in AI-enhanced detection systems, while the Port of Rotterdam is working on an AI-powered cyber shield and Siemens is testing advanced AI models for defensive security.
3. Attacks hit retailers
Ahold Delhaize said an attack in mid-October caused more than €200 million ($225 million) in sales losses and prompted a profit warning; some of its stores in Belgium and Luxembourg were also among those hit by refrigerator hacks this week. McKinsey projects the global market for cybersecurity products and services sold by outside vendors will grow from $223 billion in 2025 to $346 billion by 2029.
