In today's digital landscape, data breaches pose a major threat to both organizations and individuals. The exposure of sensitive information can result in financial losses, reputational harm, and legal consequences. To address these risks, Cloud AI- Data Breach Detection offers a powerful solution by harnessing artificial intelligence and cloud computing to identify, mitigate, and prevent breaches effectively. This paper introduces Sky Vault, a cloud AI system designed to simulate a cloud storage platform. Sky Vault replicates core functionalities of popular storage services such as Google Drive and Google Cloud. The proposed approach demonstrates how behavioral analysis can monitor user activities, detect anomalies, and strengthen the security and integrity of cloud storage systems.