News Summary
- The Cisco 2025 Data Privacy Benchmark Study reveals increasing
trust in global providers to protect and secure data
- 86% of respondents support privacy legislation, recognizing its
positive impact on business operations
- While 96% confirm that privacy investments provide returns
exceeding costs, organizations anticipate resources and spending
will likely shift to AI in the coming year
- AI familiarity is rising, with 63% being very familiar with
Generative AI, but concern for unintended risks continue
SAN
JOSE, Calif., April 2,
2025 /PRNewswire/ -- Cisco (NASDAQ: CSCO)
today unveiled its 2025 Data Privacy Benchmark Study, offering a
comprehensive analysis of privacy trends and their profound
implications for businesses worldwide. As data privacy remains
critical to establishing business value and trust, the study
uncovers a complex landscape where the 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 demonstrates the growing importance of establishing
solid data privacy foundations to unleash the full potential of
AI.
"Privacy and proper data governance are foundational to
Responsible AI," said Dev Stahlkopf, Cisco Chief Legal Officer.
"For organizations working toward AI readiness, privacy investments
establish essential groundwork, helping to accelerate effective AI
governance."
Concerns around safety and security drive data residency
decisions
Despite increased operational costs of data localization, 90% of
organizations see local storage as inherently safer, while 91% (up
five percentage points 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.
"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 such as the Global Cross-Border Privacy Rules Forum will
play a vital role in enabling growth while effectively 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 the costs associated
with compliance, a resounding 96% of organizations report that the
returns significantly outweigh the investments.
This sentiment is echoed by the increasing consumer awareness
and confidence in privacy laws 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 many organizations reporting 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 like Cisco's AI
Defense which safeguard against the misuse of AI tools and
data leakage.
In turn, there is an increased focus on investing in AI
governance processes among respondents, where an overwhelming 99%
of respondents 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. Cisco will continue
to monitor this shift in future research, 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
Cisco's annual study highlights the need for organizations to
balance local data storage, global expertise, and privacy in an
AI-driven world. It emphasizes the need to view data governance as
an essential strategic investment for aligning AI strategies with
privacy, ensuring sustainable growth and consumer trust.
Additional Resources:
-
Report: https://www.cisco.com/c/dam/en_us/about/doing_business/trust-center/docs/cisco-privacy-benchmark-study-2025.pdf
- Infographic:
https://www.cisco.com/c/dam/en_us/about/doing_business/trust-center/docs/cisco-privacy-benchmark-study-infographic-2025.pdf
- Blog:
https://blogs.cisco.com/security/unlocking-the-privacy-advantage-to-build-trust-in-the-age-of-ai
- Trust Center Landing Page:
https://www.cisco.com/c/en/us/about/trust-center/data-privacy-benchmark-study.html
About Cisco
Cisco (NASDAQ: CSCO) is the worldwide technology leader that is
revolutionizing the way organizations connect and protect in the AI
era. For more than 40 years, Cisco has securely connected the
world. With its industry leading AI-powered solutions and services,
Cisco enables its customers, partners and communities to unlock
innovation, enhance productivity and strengthen digital resilience.
With purpose at its core, Cisco remains committed to creating a
more connected and inclusive future for all. Discover more
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