Cisco analysis finds shadow AI exposes gaps in enterprise cybersecurity

(AWP Alliance News) - Unapproved employee use of AI is increasing enterprise cybersecurity risk as adoption outpaces governance, according to an industry analysis. Organizations with high levels of shadow AI incurred average breach costs USD 670,000 higher than those with little or none; one in five organizations reported a breach linked to shadow AI. Among organizations experiencing an AI-related security incident, 97% lacked proper AI access controls.

Research for 2026 found AI-enabled malicious breaches rose 56% from the prior year, with average costs of about USD 6 million. Yet organizations making extensive use of AI and automation in security saved about USD 1.93 million in breach costs compared with those using neither.

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Disclaimer: This news brief was created using generative artificial intelligence. Cisco Systems Inc. published the original content used to generate this news brief on October 14, 2026, and is solely responsible for the information contained therein.