Enterprises in the Asia Pacific region are swiftly embracing artificial intelligence (AI) technologies, but they are facing significant financial losses due to API security incidents. A recent report by Akamai Technologies revealed that the average estimated loss per incident has now surpassed $1 million. This marks a substantial increase from the previous year’s average cost of around $580,000, underscoring the escalating cyber risks associated with the rapid adoption of AI.
The report highlighted that a significant 81% of organizations in the region encountered at least one API security incident in the past year. The most common type of security incident involved attacks on APIs connected to AI technologies, including applications, AI agents, and large language models (LLMs), as reported by 43% of respondents. India and Singapore were particularly vulnerable, with 93% and 90% of organizations, respectively, experiencing API-related attacks.
Japan reported the highest average financial impact per breach at $1.59 million, followed closely by Singapore at $1.33 million per incident. Despite the increasing focus on API security, with 72% of organizations intensifying their efforts in the past year, only 19% reported fully integrating security testing into their API software development and deployment processes. This gap in security measures poses a significant challenge to the robustness of AI-powered services.
Reuben Koh, Director of Security Technology & Strategy at Akamai Technologies, Asia-Pacific & Japan, emphasized the critical role of APIs in supporting AI-powered services. He warned that inadequate security foundations could result in service disruptions, higher recovery costs, and a loss of consumer trust. The report also flagged the lack of visibility in enterprise security systems, with only 22% of respondents maintaining a complete inventory of APIs handling sensitive data.
The report underscored that weak API visibility not only poses cybersecurity risks but also presents compliance challenges, particularly as AI services become more deeply integrated into business operations. It is imperative for organizations to enhance their API security measures to mitigate the financial and reputational risks associated with AI adoption.
