India's Data Breach Costs Hit Record High as AI-Generated Attacks Rise

The average cost of a data breach in India has reached a record high of Rs 25.5 crore, according to IBM's 2026 Cost of a Data Breach Report. This represents a 15.9 per cent increase from last year's figure of Rs 22 crore.

The report also found that the average number of compromised records per incident increased to nearly 39,500 in 2026, up from 38,200 in 2025.

AI-generated data breaches accounted for 26 per cent of malicious incidents in India, highlighting the growing role of artificial intelligence in cyberattacks.

Gaurav Agarwal, Vice President, Technology at IBM India & South Asia, noted that organisations using AI and strong governance were better positioned to fend off cyberattacks. However, he also warned that most organisations apply AI in limited ways, often focused on detection, and must embed it across the full security lifecycle.