AI Breaches Costlier: Ungoverned AI Risks & Costs Soar

Data breaches now cost businesses an average of $5 million, a 12% increase from the previous year. What's interesting is that some attacks on AI tools are even more expensive, with inversion and prompt-injection attacks costing roughly $6 million on average. The majority of organizations, 92%, that suffered attacks on their AI models did not properly control access to these tools. This is happening even though businesses say identity management is a top defense against costly breaches. Only four out of ten organizations limited access to their AI systems. Here's the thing: governance is a missing piece when it comes to AI. The share of security incidents involving shadow AI more than doubled, now at 43%, and the average cost of these breaches also increased. More than two-thirds of organizations said they lack governance processes to limit shadow AI. This suggests that businesses are adopting AI before they know how to manage it, creating expanded attack paths and higher financial impact.