The global average cost of a data breach soared to an all-time high of $4.45 million

AI and automation in security are major factors in reducing the amount of time it takes to contain hacks. Limor Kessem explains key findings of IBM's comprehensive annual cybersecurity report.

Hacks and data breaches are becoming more sophisticated and more expensive.

According to IBM's annual Cost of a Data Breach Report, the average data breach costs $4.45 million, up 15% over the past three years. Although 51% of organizations plan to increase security investments, Limor Kessem, a Cyber Crisis Management Lead at IBM Security, noted that many companies seem to be shifting these breach costs to their consumers.

"It started after the pandemic that we noticed companies are passing on the costs," Kessem told me in a recent interview. "We thought it was about, you know, supply chain costs are rising. Maybe they have no other way to balance the books. A lot of attackers started emerging during and after the pandemic. But we're seeing this now, three years later, that companies are admitting and saying 'we're not gonna grow our security investment. We're actually just gonna transfer the costs over.'"

The silver lining amidst this gloomy cyber landscape might just be artificial intelligence. Integrating AI into cybersecurity systems is proving to be an essential measure in combating threats. According to the report, companies that deployed AI and automation across their environments saw cost savings of 40%. The average breach lifecycle is 108 days. AI can shave about a million dollars over the cost of a breach.

Additional key insights about the global impact of data breaches:

Record High Costs: The global average cost of a data breach in 2023 has reached $4.45 million, a 15% increase over the past three years, marking an all-time high for the report.

Detection and Escalation Costs Surge: Costs for detecting and escalating breaches have jumped by 42%, reflecting a shift towards more complex investigations.

Division in Handling Breaches: Businesses differ in their responses to the increased frequency and costs of breaches. 57% pass incident costs onto consumers, while 51% invest more in security.

AI and Automation Make a Difference: Organizations using AI and automation extensively witnessed shorter data breach lifecycles (108 days less) and nearly $1.8 million lower breach costs than those not deploying these technologies.

Ransomware Dynamics: Victims involving law enforcement saved an average of $470,000, yet 37% opted not to engage them. Nearly half of the studied victims reportedly paid the ransom.