IBM Security’s report reveals that severe staffing shortages are exacerbating the financial impact of data breaches while adopting AI is helping to mitigate these costs.
The report tagged “Cost of a Data Breach” highlights a significant rise in the cost of data breaches, marking the largest increase since the COVID-19 pandemic. According to IBM, the global average cost of a data breach in 2024 has surged to $4.88 million, a 10% increase from the previous year.
The report underscores the impact of staffing shortages on breach costs. Organizations facing severe staffing issues reported an average breach cost of €5.28 million, compared to €3.66 million for those with fewer staffing challenges. However, there is a positive trend, as more organizations plan to increase their security budgets this year.
Kevin Skapinetz, IBM Security VP of strategy and product design, said businesses are caught in a “continuous cycle of breaches, containment and fallout response”.
“This cycle now often includes investments in strengthening security defences and passing breach expenses on to consumers – making security the new cost of doing business,” Skapinetz said.
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Skapinetz said that generative AI is “expanding the attack surface” and will make security expenses “unsustainable, compelling business to reassess security measures and response strategies”.
“To get ahead, businesses should invest in new AI-driven defences and develop the skills needed to address the emerging risks and opportunities presented by generative AI,” he said.
AI and automation are playing a critical role in reducing breach costs. The report found that extensive use of these technologies resulted in a $2.2 million reduction in breach costs, the largest savings reported. Two-thirds of the organizations surveyed are now deploying AI and automation in their security operations.
The report concludes that while AI offers substantial benefits in breach identification and containment, it also poses new challenges for the cybersecurity sector. IBM continues to invest in AI technology, having launched its own AI-powered threat detection and response services last year.
