Rising Costs: Data Breaches in India Hit Record High as AI Targets Soar
Data breaches in India have reached a new high with costs soaring to Rs 220 million in 2025. The IBM report highlights the rapid adoption of AI without adequate security frameworks, making AI systems lucrative targets. Shadow AI and lack of governance policies amplify the risks and costs.
- Country:
- India
The cost of data breaches in India has surged to an unprecedented Rs 220 million in 2025, a notable 13% rise from the previous year's Rs 195 million, according to IBM's new Cost of a Data Breach Report. The report indicates a swift adoption of artificial intelligence (AI) globally, outpacing the creation of necessary security and governance frameworks.
Although AI-related breaches account for a small fraction of the incidents, the report has, for the first time, analyzed security, governance, and access controls related to AI. This underscores AI's emergence as a prime target for cybercriminals. In India, nearly 60% of impacted firms either lack a cohesive AI governance policy or are in the process of formulating one, with only 34% employing AI governance technology among those with existing policies.
The growing threat from 'Shadow AI', which refers to the deployment of AI applications without IT department oversight, was identified as a significant cost contributor, adding approximately Rs 17.9 million to average breach costs. Nonetheless, only 42% of organizations have implemented measures to manage AI use or identify Shadow AI activities.
Phishing stands as the most common breach cause in India at 18%, trailed by third-party vendor and supply chain compromises at 17%, and vulnerability exploitation at 13%. The average time to detect, contain, and remediate breaches improved to 263 days in 2025—a 15-day reduction from 2024, highlighting enhanced detection and containment strategies.
The research sector reported the highest breach costs in India, averaging Rs 289 million, with the transportation industry close behind at Rs 288 million. Although the industrial sector led with the highest costs in 2024, it recorded an average of Rs 264 million this year. The findings stressed that leveraging AI and security automation could potentially reduce breach costs by over 50%. However, a significant 73% of surveyed Indian organizations reported limited or no adoption of such technologies, despite evident financial advantages. (ANI)
(With inputs from agencies.)
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