ForceNow Blog

Shadow AI: Why AI-Powered Cyber Attacks Are Getting Faster and Costlier

Written by Clay Macdonald | Aug 8, 2025 1:00:00 PM

The cybersecurity landscape is in constant flux, but a significant paradigm shift is underway. Artificial intelligence (AI), once primarily viewed as a potent defensive tool, is increasingly being weaponized by threat actors. This evolution is not just theoretical; recent data from IBM’s Cost of a Data Breach Report underscores the alarming financial implications of AI-powered cyberattacks, demonstrating a clear trend toward faster, more sophisticated, and ultimately costlier incidents. For business leaders, CISOs, and IT professionals, understanding this evolving threat landscape and implementing proactive defense strategies is no longer optional – it’s a business imperative.

 

 

What Is Shadow AI?

 

At the heart of this growing risk lies the concept of shadow AI. Similar to shadow IT, where employees utilize unapproved software and hardware, shadow AI refers to the unauthorized adoption and use of AI-powered tools and services within an organization without the knowledge or consent of the IT or security teams. The proliferation of readily available and user-friendly AI applications, ranging from sophisticated language models to code generation tools, makes shadow AI an increasingly prevalent challenge.

 

Employees, often with the best of intentions to enhance productivity or streamline tasks, might integrate these AI tools into their workflows without considering the potential security ramifications. This can create significant blind spots for security teams, rendering traditional monitoring and control mechanisms ineffective. When AI tools operate outside the purview of established security protocols, they introduce new and often unassessed vulnerabilities into the organizational ecosystem.

 

 

The Hidden Cost of Shadow AI

 

IBM’s 2024 Cost of a Data Breach Report paints a stark picture of the financial impact of shadow AI. The report highlights that a concerning 20% of recent data breaches involved shadow AI, contributing to an average additional cost of approximately $670,000 per incident. This significant financial burden arises from several factors.

 

Unauthorized AI tools often bypass internal security controls, such as data loss prevention (DLP) measures and access management policies. This lack of oversight increases the risk of sensitive data being inadvertently exposed, misused, or exfiltrated through these unmanaged channels. Furthermore, the security posture of these external, unvetted AI services is often unknown, making them potential entry points for attackers seeking to exploit vulnerabilities. The lack of visibility into shadow AI usage also hinders incident response efforts, as security teams may be unaware of the compromised tools or the extent of the data affected.

 

 

Legit AI Tools Can Be Dangerous Too

 

The threat isn't limited to just unauthorized AI. Even legitimate, sanctioned AI tools within an organization can present security risks if not properly managed and secured. IBM’s report indicates that 13% of data breaches involved the exploitation of legitimate AI services. These breaches often occur through API abuse or the exploitation of insecure third-party plugins integrated with these AI platforms.

 

APIs, which allow different software systems to communicate with each other, can be vulnerable if not properly secured with strong authentication and authorization mechanisms. Attackers can exploit these weaknesses to gain unauthorized access to data or functionalities within the AI service. Similarly, third-party plugins, while often adding valuable features, can introduce vulnerabilities if they contain security flaws or are not regularly updated. This highlights the critical need for rigorous security assessments and ongoing monitoring of all AI tools, even those officially sanctioned by the organization.

 

 

AI-Powered Attacks Are Getting Faster

 

One of the most concerning aspects of weaponized AI is its ability to dramatically accelerate the attack lifecycle. Threat actors are leveraging AI to automate and enhance various stages of their operations, leading to significantly faster and more efficient attacks.

 

IBM’s report reveals a staggering statistic: AI is drastically reducing the time attackers need to prepare for an attack. The average attack preparation time has plummeted from 16 hours to a mere 5 minutes in cases where AI was involved. This speed advantage provides attackers with a crucial edge, allowing them to launch sophisticated attacks with unprecedented efficiency.

 

AI is being used to craft highly convincing phishing emails and social engineering content at scale. Natural language processing (NLP) models can generate personalized and grammatically flawless emails that are far more likely to deceive recipients than traditional, often error-ridden phishing attempts. Similarly, AI-powered tools can rapidly create realistic deepfakes – manipulated videos or audio recordings – that can be used to impersonate executives or trusted individuals, making social engineering attacks significantly more believable and effective. This accelerated attack speed leaves defenders with less time to detect and respond, increasing the likelihood of a successful breach.

 

 

Actionable Recommendations for Businesses

 

Addressing the growing threat of shadow AI and weaponized automation requires a multi-faceted approach that combines technology, policies, and employee awareness. Here are some actionable recommendations for businesses:

  • Perform an AI Asset Inventory: The first step is to gain visibility into the AI tools being used within your organization. Conduct a comprehensive inventory to identify both sanctioned and unsanctioned AI applications. This can involve surveying employees, analyzing network traffic, and utilizing specialized discovery tools.

  • Deploy CASB or DLP Tools to Monitor AI Tool Usage: Cloud Access Security Brokers (CASB) and Data Loss Prevention (DLP) solutions can be configured to monitor and control the usage of cloud-based AI services. These tools can help identify shadow AI instances, enforce data security policies, and prevent sensitive information from being shared with unauthorized AI platforms.

  • Train Employees on AI-Specific Phishing and Impersonation Threats: Traditional cybersecurity awareness training needs to be updated to address the specific risks posed by AI-powered attacks. Educate employees on how to identify sophisticated phishing emails generated by AI, recognize deepfakes, and be wary of unusual requests, even if they appear to come from trusted sources.

  • Enforce Strict API Security and Third-Party Plugin Reviews: For all sanctioned AI tools, implement robust API security measures, including strong authentication, authorization, and rate limiting. Establish a rigorous process for reviewing and approving third-party plugins to ensure they do not introduce security vulnerabilities. Regularly audit API usage and plugin activity for any suspicious behavior.

  • Consider Adopting Zero Trust Models for AI Interaction: Implementing a Zero Trust security model can significantly enhance the security of AI interactions. This approach assumes that no user or device is inherently trustworthy and requires strict verification for every access request, regardless of location. Applying Zero Trust principles to how users and applications interact with AI services can limit the potential damage from compromised accounts or malicious AI tools.

 

The rise of shadow AI and the weaponization of automation represent a significant escalation in the cyber threat landscape. The speed and sophistication of AI-powered attacks are increasing rapidly, as evidenced by the alarming statistics from IBM’s recent report. Business leaders, CISOs, and IT professionals must recognize this evolving threat and take proactive steps to mitigate the risks. By gaining visibility into AI usage, implementing robust security controls, educating employees, and adopting a proactive security posture, organizations can better defend themselves against the faster and costlier cyberattacks of the AI era. Ignoring this emerging threat is no longer an option; the financial and reputational consequences are simply too high.