Artificial intelligence is creating new opportunities for software companies, but Dan Ives believes one sector could emerge as one of the biggest long-term winners: cybersecurity.

Speaking on The Real Eisman Playbook, the veteran tech analyst argued that AI is dramatically expanding the number of digital endpoints organizations must protect, setting the stage for a surge in cybersecurity spending over the next several years.

Every AI Agent Creates Risk

Ives said the rapid adoption of AI agents will fundamentally reshape enterprise security needs.

“Every agent creates another endpoint,” he said, adding that organizations deploying thousands — or eventually millions — of AI agents will need to secure each one.

As enterprises accelerate AI adoption, Ives believes cybersecurity will become an increasingly essential layer of the AI technology stack rather than a discretionary area of IT spending.

Cyber Budgets Could Double

That shift, he argued, will translate directly into higher spending.

“I believe cybersecurity spend could double over the next two to three years,” Ives said, calling the trend one of the most underappreciated consequences of the AI revolution.

Rather than replacing existing security infrastructure, AI is creating new attack surfaces that require additional investment as companies expand their use of autonomous software and intelligent digital workers.

Why Investors Should Watch Security Stocks

Ives highlighted cybersecurity leaders including CrowdStrike Holdings Inc. (CRWD) and Palo Alto Networks Inc. (PANW) as companies positioned to benefit from the AI-driven expansion in security spending.

For investors, the takeaway is that AI’s biggest winners may extend well beyond chipmakers and cloud providers. If enterprises deploy AI agents at the scale Ives expects, protecting those systems could become one of the fastest-growing areas of technology spending over the coming years.