Shadow AI: The rise of a cybersecurity threat from unauthorised AI use

Global data breach costs in 2025 declined for the first time in five years, dropping to an average $4.44 million due to containment driven by AI-powered defences, according to a new report.  In India, such costs increased from $2.35 million last year to $2.51 million in 2025. Shadow AI, the unauthorised use of artificial intelligence tools, models, or platforms, is emerging as a new threat, according to IBM’s annual ‘Cost of Data Breach’ report. It studied 600 organisations impacted by data breaches between March 2024 and February 2025.