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Global Breach Costs Fall for First Time in Five Years as U.S. and Canada Diverge

AI-driven detection, automation, accelerated containment have slashed breach lifecycles to a nine-year low of 241 days.

IBM
IBM office.
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Overview

  • Worldwide average breach cost declined 9% to $4.44 million in 2025, marking the first drop since 2020
  • U.S. breach expenses rose 9% to a record $10.22 million, driven by higher regulatory fines and detection costs
  • Canadian companies saw costs increase 10.4% to $6.98 million amid slower AI defense adoption and governance gaps
  • Healthcare remained the costliest sector at $7.42 million per breach with the longest resolution time of 279 days
  • Organizations using AI and automation saved an average $1.9 million and cut breach lifecycles by 80 days, though 13% reported AI-related breaches and 97% lacked AI access controls