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IBM

India’s Average Data Breach Cost Reaches All-Time High In 2025: IBM

By Advanced AI EditorAugust 7, 2025No Comments1 Min Read
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AI Governance Policies: Nearly 60% of breached organisations either don’t have an AI governance policy or are still developing a policy. Of the organisations that have AI governance policies, only 34% use AI governance technology.

Cost Of Shadow AI: Shadow AI — the use of AI tools without oversight — was among the top three cost drivers of a breach in India, added Rs 17.9 million to the cost of a breach on average. Despite this, only 42% of organisations have policies to manage AI or detect shadow AI.

Phishing Remains Top Attack Vector: In India, the top three initial cause/attack vector for the data breaches were phishing (18%), third party vendor and supply chain compromise (17%), and vulnerability exploitation (13%).

Research Breaches Become Costliest: The research sector in India faced the highest impact from data breaches, with average cost reaching Rs 289 million, followed by the transportation industry at Rs 288 million and the industrial sector at Rs 264 million.

Security AI Investments Still Lacking: Data showed that using AI and security automation less than halved the cost of a data breach. Despite the proven benefit, 73% of those surveyed reported limited or no use of AI and security automation.



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