Shadow AI Threat Rising

Shadow AI, the unauthorised use of artificial intelligence tools, models, or platforms, is emerging as a new threat.

Global data breach costs in 2025 declined for the first time in five years, dropping to an average $4.44 million due to containment driven by AI-powered defences, according to a new report.

In India, such costs increased from $2.35 million last year to $2.51 million in 2025.

Shadow AI, the unauthorised use of artificial intelligence tools, models, or platforms, is emerging as a new threat, according to IBM's annual Cost of Data Breach report.

It studied 600 organisations impacted by data breaches between March 2024 and February 2025.

Dropping their guard

• 1 in 5 organisations that suffered a cyberattack blame shadow AI for the breach
• 97% of organisations that suffered AI-related breach lacked proper AI access controls
• $670,000 added cost of shadow AI to avg breach price
• 49% of organisations investing in security post-breach
• 63% Organisations say they lack AI governance policies or are still developing one

Investing in safety

• $1.9 mn Average cost savings from use of AI in security
• $4.44 mn Global average cost of data breach in 2025
• 9% drop in cost of breach from last year ($4.88 mn)

Feature Presentation: Ashish Narsale/Rediff