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

Shadow AI: The Hidden Tech That’s Costing Companies a Fortune in Breaches

  • Unapproved AI tools in workplaces add $670K extra to data breach bills, says IBM.
  • 97% of firms lack basic controls, letting “shadow” AI run wild.
  • From chatbots to analytics, these rogue apps are a ticking time bomb for security.

IBM’s 2025 Cost of a Data Breach Report, released in partnership with the Ponemon Institute, reveals that breaches involving employees’ unauthorized use of AI tools cost organizations an average of $4.63 million. That’s nearly 16% more than the global average of $4.44 million.

Ever heard of “shadow AI”? It’s when employees sneak in AI tools without IT’s okay, and it’s blowing up as a massive risk. IBM’s latest report is going viral because it shows how this sneaky stuff jacks up breach costs – think unauthorized ChatGPT sessions spilling company secrets.

For beginners, imagine AI as a helpful intern who sometimes shares too much. Businesses love the speed, but without rules, it’s chaos. The fix? Simple policies and training to keep the good vibes without the hacks. This trend is hitting headlines as more firms wake up to the double-edged sword of easy AI access.

Source: IBM