In 2025, Canadian businesses are paying an average of CA$6.98 million per data breach — a 10.4% increase from 2024, according to IBM’s latest Cost of a Data Breach Report. A major contributor to this rise is the spread of “Shadow AI” — unauthorized artificial intelligence tools used by employees without oversight. These ungoverned systems are adding an average of CA$308,000 to each breach, increasing risk exposure and complicating compliance.
The financial sector continues to face the highest costs, followed by pharmaceutical and industrial sectors. Beyond corporate losses, Canadians are directly impacted through higher service costs, the risk of stolen personal information, and critical service disruptions.
But there’s a way forward. Businesses that have invested heavily in AI-driven security and automation are seeing average breach costs drop to CA$5.19 million and are resolving incidents 59 days faster than those without such tools. These technologies improve detection and response, helping reduce both financial losses and reputational damage.
For Quebec- and Canada—based businesses, the message is clear: protecting consumer data requires more than firewalls. Organizations must implement AI governance policies, invest in security automation, and train staff to detect and prevent emerging threats. Cybersecurity is no longer optional — it’s business-critical.
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