The financial toll of data breaches continues to skyrocket, with the average incident costing companies $4.88 million in 2024, according to the Ponemon Institute’s Cost of Data Breach Report. This represents a worrying trend, with costs ballooning over $1 million in just the past six years.
Several factors contribute to the rising financial toll of data breaches. One key driver is the increasing volume and complexity of sensitive data that companies handle. This includes personal information, financial records, intellectual property and other valuable assets that are highly attractive to cybercriminals.
Additionally, the development of more sophisticated hacking techniques and the emergence of new attack vectors (such as ransomware and supply chain attacks) have made it easier for malicious actors to breach security defenses and exfiltrate sensitive data.
Even though companies are spending big (i.e. investments in security solutions), there is a silver lining. Companies using AI and automation are generally seeing lower breach costs.
Data from AltIndex.com supports this statement. Companies using AI and automation for security experienced an average data breach cost of $3.84 million in 2024, $1.8 million less than organizations without these tools. This translates to a cost reduction of 31%.
Regarding this contrast, the Ponemon Institute’s Cost of Data Breach Report reveals that organizations not utilizing AI faced an average cost of $5.72 million in data breaches, a rise from $5.36 million in 2023.
That said, those making extensive use of AI and automation had a 31% lower cost of $3.84 million, saving more than $1.8 million per single data breach. Even the limited use of AI and automation in cyber threat detection made a huge difference, bringing one million dollars lower average data breach cost.
So, should your company use security AI and automation based on these reports? Well, the answer is probably simple: AI and automation offer powerful tools that can enhance cybersecurity and mitigate the financial risks associated with data breaches.
But let's look just a bit more into the details:
AI-powered systems excel at analyzing vast amounts of data to identify and respond to threats in real time. These systems process information from various sources, including network traffic, user behavior and security logs, to detect anomalies and potential security incidents that might evade human detection. By identifying threats early on, AI reduces the time it takes to detect and contain breaches.
AI algorithms continuously learn and adapt to improve their ability to recognize new and emerging threats. This enables AI-powered security systems to stay ahead of cybercriminals who are constantly evolving their tactics. Additionally, AI is used to prioritize threats based on their potential impact.
Automation streamlines routine security tasks to free up human resources to focus on more complex and strategic initiatives. For example, automation is used to patch vulnerabilities, update security software and perform routine backups. This reduces the workload on security teams and minimizes the risk of human error. Security professionals are then allowed to devote more time to analyzing threats.
AI-powered systems provide real-time threat detection and response capabilities, while automation streamlines routine tasks. Organizations then improve their ability to prevent, detect and respond to cyberattacks, reducing their exposure to financial risks and protecting their valuable data.
So yes, organizations should look at the trends in these reports and to determine what security AI and automation solutions may be best for them.
Edited by
Alex Passett
