Shadow AI, the unauthorised use of artificial intelligence tools, models, or platforms, is emerging as a new threat.
Kindly note the image has been posted only for representational purposes. Photograph: Kind courtesy Vilius Kukanauskas/Pixabay.com
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
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