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Shadow AI adds $670K to breach costs while 97% of enterprises skip basic access controls, IBM reports

Shadow AI adds $670K to breach costs while 97% of enterprises skip basic access controls, IBM reports

July 30, 2025: Shadow AI Costs Soar Amid Lax Security - IBM's 2025 report reveals a $670K increase in breach costs due to shadow AI, with 97% of enterprises lacking adequate AI access controls. Data breaches often involve compromised information, and 65% include customer PII. Weaponized AI is accelerating, with incidents frequently involving supply chain compromises.

Poor governance and oversight leave organizations vulnerable, yet AI-driven security can save $1.9 million per breach. As U.S. cybersecurity costs rise, the report stresses the urgent need for robust AI governance, security measures, and cross-functional collaboration to manage risks in an AI-dominated environment.

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