Indian Companies Face Exponential Rise in Data Breach Costs Amidst AI-Driven Cyber Threats

The financial toll of data breaches in India has increased to ₹25.5 crore in 2026, according to IBM's Cost of a Data Breach Report.

This represents a 15.9% year-over-year increase from ₹22 crore in 2025, with the average number of compromised records rising to 39,500.

The report highlights the growing threat posed by AI-driven attacks, which accounted for 26% of malicious breaches investigated in India.

Gaurav Agarwal, Vice President of Technology for IBM India & South Asia, noted that 'the rapid proliferation of AI in India offers substantial opportunities for innovation; however, it concurrently accelerates the evolution of cyber threats.'