The average data breach cost has snowballed over the years, causing companies more financial damage than ever. Despite considerable investments in security technology and solutions to prevent cybercrime, the average data breach cost has grown by more than one million over the past six years, reaching a whopping $4.88 million in 2024. Still, this figure significantly varied depending on the country and industry in which the data breach took place and whether the company used security AI and automation to identify breaches and reduce costs.
According to data presented by AltIndex.com, companies that used security AI and automation reported a $1.8 million lower average data breach cost in 2024.
Artificial intelligence and automation have transformed the cybersecurity world, making it easier for cyber criminals to launch attacks and for defenders to identify threats and automate responses.
However, the technologies have also significantly cut the average data breach cost, saving millions of dollars for companies and organizations that use them regularly. According to the latest Ponemon Institute`s Cost of Data Breach Report, the difference between the average data breach cost in a company using AI security and the one that doesn’t is striking.
Statistics show organizations that weren’t using security AI and automation had an average data breach cost of $5.72 million in 2024, up from $5.36 million last year. On the other hand, 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.
AI and automation in cyber threat detection not only lead to lower breach costs but also significantly faster response times. Statistics show that companies and organizations using these technologies identified and contained data breaches almost 100 days faster than those that didn’t.
Overall, using AI and machine learning insights was the second most crucial factor in reducing data breach costs, following employee training, which continues to be an essential element in cyber defense strategies, specifically when detecting and preventing phishing attacks.
The 2024 Cost of Data Breach Report also showed that the number of organizations that extensively used AI security and automation increased. In 2024, 31% of organizations used these technologies to prevent and identify a data breach, or 3% more than last year. The share of those using AI and automation on a limited basis also grew, rising from 33% in 2023 to 36% in 2024.
