Data privacy is essential to building confidence and business value, and is foundational to responsible artificial intelligence. However, there remains a complicated environment where there is a need for local data storage and, at the same time, reliance on the expertise of global providers.
A study by Cisco shows that despite increased operational costs of data localisation, 90% of organisations find local storage safer, while 91% (up 5% year-over-year) trust global providers for better data protection. These dual data points reveal today's complex privacy landscape: global providers are valued for their capabilities, but local storage is perceived as safer.
Conducted across 12 countries with insights from 2,600 privacy and security professionals, the Cisco study demonstrates the growing importance of establishing solid data privacy foundations to unleash the full potential of AI.
Privacy: Cornerstone Of Responsible AI
Even as familiarity with AI increases — with 63% of respondents now very familiar with generative AI — concerns remain steady year-over-year. Despite many organisations reporting significant business gains from gen AI, data privacy is still a major risk.
Notably, 64% of respondents worry about inadvertently sharing sensitive information publicly or with competitors, yet nearly half admit to inputting personal employee or non-public data into gen AI tools.
There is an increased focus on investing in AI governance processes, with almost all (99%) respondents anticipate reallocating resources from privacy budgets to AI initiatives in the future. The 2024 Cisco AI Readiness Index Emphasises this trend, showing that IT budget allocations are anticipated to nearly double in 2025 as companies work to safely deploy AI technology.
Privacy Laws: Building Trust Through Compliance
Privacy legislation remains a cornerstone of customer trust, with 86% of respondents noting a positive impact on their organisations, up from 80% last year. Despite the costs associated with compliance, 96% of organisations report that the returns significantly outweigh the investments.
This sentiment is echoed by the increasing consumer awareness and confidence in privacy laws mentioned in another Cisco survey, where most global consumers (53%) said they are aware of their country's privacy laws. Among those aware, 81% feel confident in their ability to protect their data, compared to just 44% of those unaware of such laws.
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