A recent report has revealed that nearly 60 per cent of Indian organisations either do not have an artificial intelligence governance policy or are still in the process of creating one. The report, titled Cost of a Data Breach Report 2025, highlights a growing disconnect between the rapid adoption of AI tools and the slow implementation of necessary security measures.
The report points to rising concerns about how prepared Indian enterprises are to handle cyber threats that come with increased AI usage. It notes that as AI becomes more widespread, the absence of governance structures and access controls is leaving organisations vulnerable.
According to the findings, the average cost of a data breach in India has surged to ₹220 million in 2025, a 13 per cent rise compared to ₹195 million the previous year. This increase reflects the growing cyber risks faced by businesses, especially those integrating AI without investing in proper safeguards.
Globally, the report observes a similar trend. While the use of AI is expanding quickly, security protocols are struggling to keep pace. This gap is making ungoverned AI systems a preferred target for cyber attackers.
In India, only 37 per cent of organisations surveyed have implemented access controls for AI tools. Furthermore, just 42 per cent reported having policies to identify or manage “shadow AI” — the use of unauthorised AI tools and applications within an organisation. Despite its serious risks, shadow AI remains largely unaddressed.
The report identifies shadow AI as one of the top three drivers of increased breach costs. On average, it adds ₹17.9 million to the total financial impact of a data breach. Still, most companies have not taken steps to monitor or contain these hidden vulnerabilities.
When it comes to causes of data breaches, phishing remains the most common in India, responsible for 18 per cent of incidents. It is followed by third-party and supply chain compromises at 17 per cent, and exploitation of known vulnerabilities at 13 per cent.
Industry-wise, the research sector reported the highest average cost of data breaches at ₹289 million. Transportation followed closely with ₹288 million, and industrial organisations recorded an average of ₹264 million.
Despite strong evidence that AI-powered security tools can significantly reduce breach-related costs, the report found that 73 per cent of Indian organisations are using little to no AI-based security automation.
This data underlines the urgent need for Indian enterprises to match their AI adoption with adequate governance policies, security controls and automated defences to avoid costly breaches in the future.
Also read: Viksit Workforce for a Viksit Bharat
Do Follow: The Mainstream formerly known as CIO News LinkedIn Account | The Mainstream formerly known as CIO News Facebook | The Mainstream formerly known as CIO News Youtube | The Mainstream formerly known as CIO News Twitter |The Mainstream formerly known as CIO News Whatsapp Channel | The Mainstream formerly known as CIO News Instagram
About us:
The Mainstream formerly known as CIO News is a premier platform dedicated to delivering latest news, updates, and insights from the tech industry. With its strong foundation of intellectual property and thought leadership, the platform is well-positioned to stay ahead of the curve and lead conversations about how technology shapes our world. From its early days as CIO News to its rebranding as The Mainstream on November 28, 2024, it has been expanding its global reach, targeting key markets in the Middle East & Africa, ASEAN, the USA, and the UK. The Mainstream is a vision to put technology at the center of every conversation, inspiring professionals and organizations to embrace the future of tech.
