How AI Puts Company Data at Risk
Artificial intelligence helps defend against data breaches of all types. But AI is also increasing cyber threats in a growing arms race.
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AI security tools can bolster defenses against phishing, deepfakes and other cyberattacks. But there’s a problem that’s getting worse: AI is making companies and individuals more vulnerable to new digital attacks.
“AI models are now being used to perform sophisticated cyberattacks, not just advise on how to carry them out,” says a recent threat report by leading AI company Anthropic. AI chatbots, such as Anthropic’s Claude, can help cybercriminals profile victims, analyze stolen data, steal credit card information and more. One case study showed an attacker targeting at least 17 organizations in health care, emergency services, government and religious institutions for ransomware attacks.
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The AI tool helped automate the attacks, from reconnaissance to extortion demands. Anthropic banned the accounts when they were discovered and is now trying to preemptively detect such criminal activity. But that’s not much solace. “We expect attacks like this to become more common,” the report notes.
Meanwhile, the way a lot of businesses are using AI is increasing the risk. The rapid adoption of AI by businesses raises issues, since AI tools are often put in place with weak security settings, leaving the systems vulnerable to a breach. There’s also “shadow AI,” the tools used by workers that aren’t sanctioned by the company, which creates a hidden security risk. Many firms don’t have adequate policies to stop the practice.
The cost of a data breach has surged to more than $10 million in the U.S., on average, according to IBM’s recent Cost of a Data Breach Report 2025. The cat-and-mouse game is escalating. “While businesses scramble to adopt AI for competitive advantage, cybercriminals are just as rapidly incorporating these technologies into their attack arsenals,” writes Limor Kessem, cyber crisis global lead at IBM.
“Security incidents involving shadow AI accounted for 20% of breaches,” according to the report. Shoddy AI company policies, such as ignoring unsanctioned AI tools being used on company networks, significantly raise the cost of a data breach. Note that regulatory fines in the U.S. for data breaches are higher than in other countries, driving up the cost.
On the bright side, investing in AI for security led organizations to detect breaches much faster and save money, according to IBM. New policies can help mitigate the risk, such as oversight of shadow AI, having a solid data breach response plan and regular security training for workers.
A big focus should be on preventing phishing attacks, one of the top causes of data breaches. The attacks happen when fraudulent emails or other messages are used to trick someone into clicking on a malicious link or downloading a malicious file.
Businesses should also regularly take an inventory of all the software in use and ditch underused tools, which are susceptible to attacks. Other factors that help include encrypting data and using advanced threat monitoring tools.
But even detection tools are under threat. Cybercriminals’ use of AI tools “can adapt to defensive measures, like malware detection systems, in real time,” notes Anthropic.
This forecast first appeared in The Kiplinger Letter, which has been running since 1923 and is a collection of concise weekly forecasts on business and economic trends, as well as what to expect from Washington, to help you understand what’s coming up to make the most of your investments and your money. Subscribe to The Kiplinger Letter.
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