AI, machine learning, and automation are helping South African organizations detect and contain data breaches faster, driving down costs significantly, according to IBM’s 2025 Cost of a Data Breach Report.
The average cost of a data breach in South Africa dropped to R44.1 million (US$2.45 million) in 2025 — down 17% from R53.1 million ($2.95 million) in 2024. Globally, breach costs fell 9%, marking the first decline in five years.
IBM credited the improvement to increased adoption of data protection tools, AI-driven threat insights, and DevSecOps practices. However, the number of breached records rose to 23,445, up from 22,600 in 2024.
“Despite a rise in breached records, the decline in breach costs shows AI tools are working,” said Ria Pinto, GM and tech leader at IBM South Africa. “Faster threat detection is making a real impact.”
Where Costs Still Hit Hard
Detection and escalation: R17.5 million ($971,000)Lost business: R13.1 million ($727,000)Post-breach response: R12.54 million ($696,000)Notification: R950,000 ($52,700)
The financial sector had the highest average breach cost at R70.2 million ($3.9 million), followed by hospitality and services.
Top Breach Causes
Third-party vendor or supply chain compromise: 17% of casesCompromised credentials, phishing, DDoS attacks: Each at 13%
AI: Both a Tool and a Threat
While AI reduced breach costs by 32% for those using it extensively, attackers are also leveraging GenAI, especially for phishing (37%) and deepfake impersonation (35%).
About 47% of South African firms have formal AI governance policies, while another 14% are developing them. Common controls include:
AI deployment approval processes (45%)Governance tech (41%)Employee training on AI risks (37%)
IBM’s annual report, based on breaches from March 2024 to February 2025, analyzed over 600 global cases, with South Africa accounting for 4% of the sample. The study is conducted by the Ponemon Institute and sponsored by IBM.