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Global Data Breach Costs Fall 9% as U.S. Expenses Hit Record $10.22 Million

Faster identification coupled with AI-assisted containment has slashed average breach lifecycles to 241 days, driving the first cost decline since 2020.

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IBM
IBM office.
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Overview

  • The global average cost of a data breach dropped 9% to $4.44 million in 2025 on the strength of shorter detection and containment times.
  • In the United States, cost per breach climbed 9% to a record $10.22 million as labor expenses and regulatory penalties rose.
  • Healthcare data breaches remained the costliest at $7.42 million each, requiring a median 279 days to identify and contain.
  • Companies that embedded AI and automation in their security operations reduced costs by $1.9 million per breach and cut breach lifecycles by 80 days.
  • Breaches involving AI models or applications accounted for 13% of incidents, and 97% of those occurred without proper access controls, highlighting critical governance gaps.