Data Breach Cost in India Rises 16% to Record, IBM Report Finds

The average cost of a data breach in India has climbed to a record Rs 25.5 crore in 2026, according to a new IBM report. That is a 16% increase from the Rs 22 crore average recorded in 2025, highlighting the growing financial impact of cyberattacks on Indian businesses.

The size of breaches is also increasing. On average, around 39,500 records were compromised in each breach in India during 2026, compared with approximately 38,200 records the previous year.

IBM said the rapid adoption of artificial intelligence (AI) is making the cybersecurity landscape more challenging. Attackers can use AI to identify weaknesses, automate parts of an attack and carry out malicious activities more quickly. Gaurav Agarwal, vice president of technology at IBM India and South Asia, stated businesses need to use AI across the wider security process. This includes identifying threats, analysing attacks, prioritising risks and responding to security incidents.

The growing use of AI agents adds another layer of complexity. As businesses adopt more AI-powered systems, they are also turning to AI-based cybersecurity tools to identify and respond to threats more quickly.

IBM’s findings also show a significant difference in breach costs depending on how much organisations use AI and automation for security.

Companies with no AI or automation in their security operations recorded an average breach cost of Rs 31.6 crore. By comparison, organisations with extensive use of AI and automation reported an average cost of around Rs 21.3 crore per breach. Businesses with limited use of AI and automation recorded an average cost of Rs 23.1 crore.

The figures suggest that AI cybersecurity and security automation can help organisations detect threats faster, respond more efficiently and potentially reduce the financial damage caused by a breach.

As Indian businesses handle increasing amounts of digital information, the cost of security failures is becoming harder to ignore. Stronger threat detection, faster response and wider use of AI-powered security tools could help organisations reduce both the likelihood and financial impact of future data breaches.

Information referenced in this article if from The Economic Times