Cisco analysis finds shadow AI exposes gaps in enterprise cybersecurity
CSCO•Cisco’s analysis found that organizations with extensive shadow AI had average breach costs $670,000 higher, and one in five reported a breach linked to it. Among organizations with AI-related security incidents, 97% lacked proper AI access controls.
1. Shadow AI risks
Organizations with extensive shadow AI incurred $670,000 more in average breach costs, and one in five reported a breach linked to it. Among organizations experiencing AI-related security incidents, 97% lacked proper AI access controls. AI-enabled attacks accounted for one in four malicious breaches in 2026, with average costs of about $6 million; extensive use of AI and automation in security reduced breach costs by about $1.93 million compared with using neither.
