Why Canada Can’t Afford to Lag Behind on AI-Driven Cybersecurity

IBM’s latest research with the Ponemon Institute delivered a surprising twist: the global average cost of a data breach has dropped for the first time in five years but Canada isn’t following the trend. While most countries are reducing the financial toll of cyber incidents, Canada’s average breach cost has climbed 10.4%, reaching $6.98 million. That’s well above the global average of $6.4 million.

The reason? It’s taking longer and costing more to detect and respond to incidents here. Detection and escalation costs covering everything from forensic investigators to legal counsel now average $470,000 in Canada, with post-breach recovery sitting at $270,000. But perhaps the bigger concern is the “why” behind those numbers: slower adoption of AI-powered defences and persistent governance gaps.

The stakes are high. In the past year alone, organizations such as Nova Scotia Power, the College of New Caledonia, and PowerSchool have faced cybersecurity incidents. When breaches occur, especially in critical sectors like healthcare, finance, and energy, the ripple effects can be costly not just financially but operationally. Delayed detection means attackers have more time to exploit systems, deepen their access, and cause lasting damage.

Adding to the complexity is the rise of “shadow AI” when employees use artificial intelligence tools without employer oversight. While these tools can boost productivity, they often process sensitive data and interact with uncontrolled external systems, creating significant vulnerabilities. The IBM study found that organizations with high shadow AI use added nearly $1 million to their average breach costs compared to those with better oversight. And the data at risk isn’t trivial: incidents often involve personally identifiable information and valuable intellectual property.

The takeaway for Canadian organizations is clear: better governance and faster adoption of secure, approved AI tools aren’t optional they’re urgent priorities. That means giving employees safe, sanctioned AI solutions, running regular audits, and building security protocols that keep pace with innovation.

This is where experienced cybersecurity partners can make a measurable difference. Directpath Global Technologies (DGT) helps organizations bridge the gap between innovation and protection. As a Managed Security Service Provider, we offer advanced capabilities such as MTD, XDR, VAPT, SOC2 compliance, VRMaaS, WAF, and vCISO services. Our dedicated AI Division tailors solutions not only for cyber defence but also for operational optimization, helping businesses leverage AI securely and strategically.

The message from the latest numbers is urgent: the longer organizations wait to modernize their defences especially with AI-driven tools the more it will cost in the long run. In cybersecurity, speed and foresight aren’t just advantages; they’re necessities. Source: Yahoo Finance Canada