As businesses increasingly integrate artificial intelligence (AI) into their business operations, concerns about data security are also growing. IBM’s Cost of a Data Breach Report sheds light on the reality of AI security vulnerabilities. It reveals that a significant percentage of organizations are experiencing data breaches related to their AI models and applications.
Cost of a Data Breach
IBM’s report indicates that 13% of organizations reported incidents involving their AI systems, with an additional 8% uncertain whether they had been compromised.
The Dangers of Ignoring AI Security
The report found that 60% of data breaches caused by AI resulted in lost data, and 31% caused disruptions to how organizations operate. These events serve as a strong reminder for businesses to prioritize security to avoid serious issues in the future.
The Advantages of Using AI in Security
On the positive side, organizations that utilize AI and automation for security can significantly mitigate the impacts of data breaches. On average, these companies save about $1.9 million in expenses related to breaches and shorten the time to resolve a breach by around 80 days.
Understanding AI Governance
When we look at how organizations manage AI, there are some concerning findings: 63% of groups that had breaches did not have a solid policy in place for AI. Among those that do have policies, only 34% regularly check for unauthorized use of AI.
This shows a clear need for better management of AI to protect data and ensure responsible use.
The report also highlights a worrying issue of shadow AI. One in five organizations that took part in the survey reported breaches due to unauthorized or unregulated AI. Only 37% had policies to control or spot these applications. Organizations using shadow AI faced an average increase of $670,000 in costs related to breaches compared to those that managed AI more closely.
Additionally, problems linked to shadow AI often put sensitive data, like personal information and intellectual property, at risk.
The Financial Impact of Data Breaches
Data breaches are costly for organizations. The average cost of a data breach worldwide is now $4.44 million, the first drop in five years. However, in the U.S., this average rises to $10.22 million. The report also notes that the time it takes to identify and resolve a breach has decreased to an average of 241 days, primarily due to improved internal detection methods.
Sector-Specific Challenges
Some sectors, like healthcare, suffer the most from data breaches, with the average cost for these incidents reaching $7.42 million. These breaches also take the longest to detect and contain, usually around 279 days. As we move forward, prioritizing security in healthcare is very important for protecting patient privacy.
Organizations Stand Firm Against Ransomware
As security threats escalate, organizations are refining their approach to mitigating ransomware attacks. The report shows that 63% of companies now refuse to pay ransom demands, up from 59% the previous year. However, when ransoms are paid, costs can still be hefty, especially for breaches publicized by attackers, averaging $5.08 million.
Also Read: AI RIP: 5 Things Knowledge Workers Will Say ‘Sayonara’ to in the Next Decade
