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Shadow AI: The rise of a cybersecurity threat from unauthorised AI use

Shadow AI, the unauthorised use of artificial intelligence tools, models, or platforms, is emerging as a new threat, according to IBM's annual 'Cost of Data Breach' report Pallav Nayak New Delhi Listen to This Article Global data breach costs in 2025 declined for the first time in five years, dropping to an average $4.44 million due to containment driven by AI-powered defences, according to a new report. In India, such costs increased from $2.35 million last year to $2.51 million in 2025. Shadow AI, the unauthorised use of artificial intelligence tools, models, or platforms, is emerging as a new threat, according to IBM's annual 'Cost of Data Breach' report. It studied 600 organisations impacted by data breaches between March 2024 and February 2025.