Data breaches in Canada are becoming more costly and complex, with organizations paying an average of CA$6.98 million per breach in 2025, according to the latest IBM Cost of a Data Breach Report. This represents a 10.4% increase from CA$6.32 million in 2024, reflecting the growing financial impact of security incidents. Among the report's findings is the rise of unsanctioned AIâ??  known as Shadow AI â?? which amplify risks, escalate costs, and expose sensitive consumer data. Often introduced by employees using unapproved AI systems, shadow AI creates vulnerabilities and compliance issues for businesses.

The report emphasizes the critical role of security AI and automation in reducing breach costs and improving detection efficiency. Organizations extensively using security AI and autonomation report average breach costs of CA$5.19 million, compared to CA$8.53 million for those not using these tools. Additionally, these technologies helped organizations achieve faster detection and containment, shortening breach lifecycles by 59 days for those using them extensively.

"Cybersecurity isn't just about protecting data â?? it is about protecting your business's bottom line and reputation," said Daina Proctor, Security Delivery Leader, IBM Canada. "This report shows that organizations using AI and automation are saving millions and detecting breaches much faster, but gaps in AI security and governance, like the use of shadow AI, are leaving businesses exposed to unnecessary risks. By investing in AI tools and building clear AI policies, companies can take control of their security and stay ahead of emerging threats."

Key Findings in Canada for 2025

How AI is Transforming Cybersecurity Operations

The report highlights that organizations extensively adopting AI and automation across their security operations centre (SOC) see significant financial benefits. AI tools automate manual cybersecurity tasks, including across threat detection and response, allowing security teams to focus on higher-priority initiatives.

Security automation accelerates response times and reduces the impact of breaches. Organizations using these tools extensively reported faster breach identification, with the Mean Time to Identify (MTTI) reduced to 118 days, compared to 162 days for organizations not using these technologies.

What It Means for Canadians

Data breaches are not just a corporate issue â?? they affect everyone. When organizations lose millions to cyberattacks, it impacts Canadians through:

Recommendations for Canadian Businesses

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Media Contact

Lorraine BaldwinIBM Canada Communicationslorraine@ca.ibm.com

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SOURCE IBM

SOURCE: IBM

COMTEX_467668688/2197/2025-07-30T06:00:00