The Data Security Risks of AI

Author: Yogi Muthuswamy (February, 2026)

According to a McKinsey 2024 survey, 78% of organizations use AI in at least one business function and this is likely an understatement. According to IBM, the average cost of a data breach was $4.5M in 2025, and this rises to $4.92M for malicious insider incidents.

To mitigate risks and damages from sensitive data leakages, insider risks, improper data use, Project leaders and managers must address the following: