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- The Cisco 2025 Data Privacy Benchmark Study reveals growing trust in global providers for protecting and securing data.
- 86% of respondents support privacy legislation, acknowledging its positive impact on business operations.
- While 96% confirm that investments in privacy yield returns exceeding costs, organizations anticipate shifting resources and spending towards AI in the coming year.
- Familiarity with AI is increasing, with 63% being very familiar with Generative AI, yet concerns about unintended risks persist.
Cisco has unveiled its 2025 Data Privacy Benchmark Study, providing a comprehensive analysis of global privacy trends and their implications for businesses. With data privacy remaining crucial to establishing business value and trust, the study reveals a complex landscape where demand for local data storage intersects with reliance on global providers’ expertise. Conducted across 12 countries with insights from 2,600 privacy and security professionals, the eighth edition Data Privacy Benchmark Study explores the importance of solid data privacy foundations in supporting AI development. “Privacy and proper data governance are fundamental to Responsible AI,” said Dev Stahlkopf, Cisco Chief Legal Officer. “For organizations aiming for AI readiness, privacy investments lay essential groundwork, helping to accelerate effective AI governance.”
Concerns around safety and security drive data residency decisions
Despite the increased operational costs of data localization, 90% of organizations perceive local storage as inherently safer, while 91% (up five percent year-over-year) trust global providers for better data protection. These dual data points reflect the current privacy landscape: global providers are valued for their capabilities, but local storage is seen as safer.
“The drive for data localization reflects rising interest in data sovereignty,” said Harvey Jang, Cisco’s Chief Privacy Officer. “Yet, a thriving global digital economy relies on trusted cross-border data flows. Interoperable frameworks like the Global Cross-Border Privacy Rules Forum will play a vital role in enabling growth while addressing crucial privacy and security concerns.”
Building Trust Through Compliance: The Business Advantage of Privacy Laws
Privacy legislation remains a cornerstone of customer trust, with 86% of respondents noting a positive impact on their organizations, up from 80% last year. Despite compliance costs, a resounding 96% of organizations report that returns on privacy investments significantly outweigh the costs.
This sentiment is echoed by increasing consumer awareness and confidence in privacy laws, as mentioned in the 2024 Cisco Consumer Privacy 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.
Privacy: The Cornerstone of Responsible AI in the GenAI Era
As familiarity with AI increases—63% of respondents are now very familiar with Generative AI (GenAI)—concerns remain steady year-over-year. Despite significant business gains from GenAI, 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 GenAI tools. This gap highlights the need for tools that safeguard against AI tool misuse and data leakage.
In turn, there is an increased focus on investing in AI governance processes among respondents, where an overwhelming 99% anticipate reallocating resources from privacy budgets to AI initiatives in the future. The 2024 Cisco AI Readiness Index emphasizes this trend, revealing that IT budget allocations are anticipated to nearly double in the coming year as companies work to safely deploy AI technology. Future research will continue to monitor this shift, recognizing that both privacy and AI governance play a combined role in establishing safe and reliable AI systems.
AI and Privacy: Catalysts for Business Growth and Customer Loyalty
The study highlights the need for organizations to balance local data storage, global expertise, and privacy in an AI-driven world. It emphasizes the importance of viewing data governance as a strategic investment for aligning AI strategies with privacy, ensuring sustainable growth and consumer trust.
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