Implementing AI-powered Managed Detection and Response (MDR) services, such as those offered by AirMDR, provides organizations with a strategic approach to reducing the financial impact of data breaches, optimizing security operations, and enhancing overall efficiency. Understanding the potential return on investment (ROI) helps organizations make informed decisions about adopting these advanced security measures.
Data breaches are increasingly costly, with the global average total cost reaching $4.35 million in 2022, up from $3.86 million in 2020—a 12.7% increase. The cost per compromised record also rose, averaging $164 in 2022. For industries like healthcare and finance, breach costs are even higher, with average total costs of $9.23 million and $5.97 million, respectively.
Impact of AI on Breach Costs: By automating up to 80% of routine security tasks, AirMDR’s virtual analysts reduce response times, enabling rapid threat detection and containment. Early detection and intervention can lower the average financial damage from a breach, especially for SMBs handling sensitive data. Calculating potential cost avoidance by reducing breach likelihood and scope is key to evaluating ROI.
Traditional MDR services rely heavily on human analysts, resulting in substantial labor costs for 24/7 monitoring, alert triage, and threat investigation. AI-powered MDR services minimize these staffing requirements, allowing for round-the-clock monitoring at a fraction of the cost. AirMDR, for instance, offers services starting at $4 per employee per month—an affordable option for SMBs.
Efficiency Gains: Virtual analysts handle a significant volume of repetitive tasks, reducing the need for overtime or additional staffing. To calculate ROI, estimate the current cost of manual monitoring and analysis versus the cost of implementing AI-driven MDR, factoring in reduced labor costs and enhanced productivity from redirecting human analysts to high-value tasks.
In cybersecurity, every second counts. Faster response times directly correlate with lower containment costs. AirMDR’s virtual analysts prioritize critical threats, triaging alerts in under five minutes. According to industry data, organizations that contain breaches within 200 days save an average of $1 million in data breach costs.
Calculating Containment Savings: Estimate how improved response times reduce the potential for large-scale incidents and the associated containment costs. Factor in savings from early threat isolation and prevention of incident escalation, which can be particularly beneficial in high-risk environments like healthcare and finance.
Failing to secure sensitive data can result in costly regulatory fines and damage to an organization’s reputation. Industries such as finance and healthcare face strict regulations (e.g., HIPAA, GDPR), where non-compliance can lead to significant penalties. AI-driven MDR systems, like AirMDR, help maintain compliance by ensuring continuous monitoring, early threat detection, and streamlined reporting for audits.
Compliance ROI: Evaluate potential savings from avoided fines, enhanced compliance readiness, and faster audit processes. Additionally, consider the value of reputational protection, as maintaining strong security helps build customer trust and protect market position.
Using the components above, an SMB could calculate their ROI by:
Total Estimated ROI:
This ROI framework provides a clear view of the potential financial impact of adopting AirMDR’s AI-powered MDR services. By calculating potential cost avoidance, efficiency gains, and containment improvements, organizations can make a compelling case for investing in AI-driven cybersecurity, helping them stay secure while maximizing their operational budgets.
You can read the full paper on calculating ROI here.