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Yes, your business can prepare—but readiness is not a product you buy or a prediction that every breach will involve AI. AI can help attackers work faster, and it can expose models, applications, or training data. But vulnerable software, compromised accounts, ransomware, and a slow response remain important risks. Build defenses around the information and systems you need to protect, then make sure your team knows how to contain an incident and meet any notification duties.
What do the latest breach figures actually show?
Two 2026 reports point to a growing AI-related risk, but their figures describe different studies and should not be treated as a forecast for an individual business.
- IBM and the Ponemon Institute: Their study covered breaches experienced by 602 organizations globally between March 2025 and February 2026. IBM reported that one in four malicious breaches were AI-enabled, a 56% increase from the prior year, and that AI-enabled malicious breaches averaged $6 million in cost. These are results from the study’s organizations and period, not a universal breach rate or guaranteed cost.
- Verizon’s 2026 Data Breach Investigations Report: The report analyzed more than 22,000 breaches across 145 countries. It found that software vulnerability exploitation was an initial access vector in 31% of breaches, ransomware was involved in 48%, and generative AI bolstered 15 distinct attack techniques. These figures describe the report’s breach dataset; they do not mean every incident used AI or ransomware.
Together, the findings argue for taking AI-enabled attacks seriously without treating AI as the only threat. A business that secures its accounts, patches exposed software, limits access to sensitive data, and rehearses its response is addressing risks that can matter whether or not an attacker uses AI.
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What should a business protect first?
Start with the paths into your business and the information whose loss would cause the greatest harm. The FTC’s small-business guidance recommends multifactor authentication, need-to-know access, encryption, staff training, vendor access controls, and an incident-response plan. Assign an owner and a review date to each control so gaps do not remain nobody’s responsibility.
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Secure sign-ins and reduce unnecessary access
- Require multifactor authentication, prioritizing sensitive accounts and systems. The FTC gives authenticator apps, unique passcodes, tokens, and PIV cards as examples of additional login steps. A hardware security key can be one option where the identity provider and systems support it; confirm compatibility before deployment.
- Give employees and vendors only the access they need, and remove or reduce it when the work ends or their role changes. Review vendor access as part of the same process rather than treating it as a separate, permanent exception.
- Check who can access administrator accounts and sensitive systems, and make sure the business knows how to regain access if a key account is unavailable during an incident.
Protect data and keep systems in view
- Encrypt sensitive information both in transit and at rest, as the FTC recommends. Identify where important data is stored and which systems or vendors handle it so responders can determine the scope of a suspected exposure.
- Include software and third-party services in risk reviews. Verizon’s 2026 finding that vulnerability exploitation was an initial access vector in 31% of breaches is a reason to treat exposed software as a material attack path, not to assume the figure predicts your organization’s risk.
- Train staff on the security practices relevant to their work, and make sure they know how to report a suspicious message, account activity, or possible data exposure quickly.
Include AI systems where your business uses them
If your organization develops or uses AI systems, include the model, the surrounding application, and training data in the risk assessment where relevant. Consider what sensitive information those components can access and what could be exposed if an account or system is compromised. The available IBM report material discusses AI security themes such as model inversion attacks, but it does not establish that every business using AI faces the same level or type of risk. Scope controls to the system and data you actually have.
How can you tell whether your response plan is ready?
A plan is useful only if people can act on it under pressure. It should identify who leads, who can make containment decisions, who contacts counsel and technical responders, and who communicates with affected people. The FTC recommends keeping incident-response plans current. For businesses covered by the FTC Safeguards Rule, FTC guidance also discusses a written incident-response plan and maintaining the information-security program as risks change; the rule does not apply to every business.
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Before an incident, check that your plan answers these practical questions:
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- Who is authorized to isolate a system or suspend access to stop further loss?
- Which forensic expertise and legal counsel can the business call, and who has authority to engage them?
- How will the team identify affected systems, data, people, and vendors?
- Who reviews notification obligations and approves clear communications to affected parties?
- How will the business preserve potentially relevant evidence while containing the incident?
Review vendor arrangements alongside the plan. Clarify what access each vendor has, how quickly it will notify you about a suspected incident, what assistance it can provide, and who is responsible for coordinating the response. Do not assume a contract or security service automatically covers every system, loss, or notification task.
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- WORKS WITH 1000+ ACCOUNTS: Compatible with popular accounts like Google, Microsoft, and Apple. A single YubiKey 5C NFC secures 100+ of your favorite accounts, including email, password managers, and more
- FAST & CONVENIENT LOGIN: Plug in your YubiKey 5C NFC via USB and tap it, or tap it against your phone (NFC), to authenticate. No batteries, no internet connection, and no extra fees required
- MOST SECURE PASSKEY: Supports FIDO2/WebAuthn, FIDO U2F, Yubico OTP, OATH-TOTP/HOTP, Smart card (PIV), and OpenPGP. That means it’s versatile, working almost anywhere you need it
- PRIMARY & SPARE KEYS: Just like having a spare house key, we recommend buying two YubiKeys - one for daily use and one as a spare. That way you’ll never get locked out of your accounts
What should you do when a breach is suspected?
Move quickly to prevent further loss, but coordinate containment with evidence preservation. The FTC recommends mobilizing a response team, using forensic expertise where appropriate, consulting counsel, determining what information and whose data were affected, and communicating clearly.
- Activate the response plan. Notify the designated lead and assemble the people responsible for technical response, business decisions, legal review, and communications.
- Contain further loss. Take steps to stop ongoing access or data loss. Where practicable, coordinate with forensic experts before altering potentially relevant systems, so actions do not unnecessarily compromise evidence.
- Establish what happened and what is affected. Work to identify the systems and vendors involved, what information may have been exposed, and how many people may be affected. Keep a record of key decisions and actions.
- Get legal advice on obligations. Notification duties depend on the affected information, the business, and the applicable jurisdictions. Counsel can help assess which requirements apply to the facts.
- Notify and communicate as required. Contact appropriate authorities and affected people when required. Explain what is known plainly, avoid misleading assurances, and do not disclose details that could expose people to further risk.
- Consider relevant information sharing. CISA’s JCDC AI Cybersecurity Collaboration Playbook describes voluntary sharing of incident and vulnerability information and recommends integrating its processes into incident response. Consider whether those processes apply to your organization.
Who must be notified after a breach?
There is no single notification deadline that applies to every U.S. business and every breach. The FTC says all U.S. states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands have laws requiring notification of security breaches involving personal information. Requirements can vary with the information involved and the business. Identify the affected data and relevant jurisdictions, then get legal advice on the rules and deadlines that apply to the incident rather than relying on a generic nationwide timetable.
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- WORKS WITH 1000+ ACCOUNTS: Compatible with Google, Microsoft, and Apple. A single Security Key NFC secures 100 of your favorite accounts, including email, password managers, and more.
- FAST & CONVENIENT LOGIN: Plug in your Security Key NFC via USB-A and tap it, or tap it against your phone (NFC) to authenticate. No batteries, no internet connection, and no extra fees required.
- TRUSTED PASSKEY TECHNOLOGY: Uses the latest passkey standards (FIDO2/WebAuthn & FIDO U2F) but does not support One-Time Passwords. For complex needs, check out the YubiKey 5 Series.
- BUILT TO LAST: Made from tough, waterproof, and crush-resistant materials. Manufactured in Sweden and programmed in the USA with the highest security standards.
How should you weigh financial resilience?
Prevention and response planning reduce exposure; they do not make every loss avoidable. Verizon’s 2026 Breach Impact Study material analyzed approximately 70,000 cyber-insurance claims and reported that insurable losses rose from roughly $60,000 in 2019 to around $100,000 in 2024. Those are approximate figures for the study’s claims and period, not a promise about what a particular business would recover or lose.
If you assess cyber insurance or outside response services, look beyond the product label. Check what incidents and losses are covered, what exclusions and limits apply, whether forensic or legal assistance is included, and what support is available for notification and recovery. Compare those terms with the risks and response duties in your own plan.
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