India's Data Breach Costs Reach Record High Amid Rising AI-Generated Threats

India has recorded its highest-ever data breach cost at ₹25.5 crore (approximately $3.2 million USD), according to a recent study by IBM. The report found that the average total organizational cost of a data breach in India reached an all-time high, with a 15.9% increase over last year's ₹22 crore. This growth is not only in terms of financial costs but also in scale, with an average of 39,500 records compromised on average, up from 38,200 in 2025.

The study highlighted the rising threat of AI-generated attacks, which now account for 26% of malicious breaches in India. This shift has made cyber threats more sophisticated and scalable. However, organizations that extensively deployed AI and security automation experienced significantly lower breach costs and faster breach response times. In fact, nearly 73% of organizations plan to strengthen their investments in security tools and governance following a breach.

Gaurav Agarwal, Vice President of Technology at IBM India & South Asia, emphasized the need for organizations to integrate AI across the full security lifecycle, from detection and analysis to prioritization and remediation. He noted that most organizations currently apply AI in limited ways, often focused on detection, and must adapt quickly to keep pace with evolving threats.