India's Data Breach Bill Hits All-Time High Amid Rise of AI-Generated Threats

The average total organisational cost of a data breach in India has reached an all-time high, according to IBM's 2026 Cost of a Data Breach Report. The report found that organisations in India suffer from AI-generated malicious code, with 26% of breaches being caused by artificial intelligence.

Globally, the average cost of a data breach rose to $4.99 million, while in India it stood at ₹255 million (around $2.7 million), representing a 15.9% annual increase. The report noted that organisations using AI and strong governance were significantly better positioned to fend off cyberattacks.

IBM's vice president, Gaurav Agarwal, said that 'India's accelerating AI adoption is creating immense opportunities for innovation, but it is also enabling cyber threats to evolve rapidly.' He added that the most expensive types of security incidents involving an organisation's AI model or applications were inversion and prompt injection attacks.