Want AI to work for your business? Then privacy needs to come first
The study by Cisco highlights the growing importance of strong privacy practices in AI adoption. Businesses are recognizing privacy as a competitive advantage in the evolving landscape. As a result, companies are reallocating budgets to prioritize privacy measures in AI initiatives. This shift underscores the critical role of data protection in maintaining consumer trust and compliance with regulations. Overall, organizations are increasingly prioritizing privacy to stay ahead in the AI-driven market.
Cisco has released a "2025 Data Privacy Benchmark Study" that looks at the privacy challenges companies face with the rise of artificial intelligence. It offers practical insights for businesses that want to integrate AI while keeping privacy front and center.
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The study gathered opinions from 2,600 privacy and security professionals across 12 countries. A key finding is that most companies (86%) support privacy laws, citing a "positive" impact on their business operations. Although compliance can be costly, 96% of organizations reported that the benefits significantly outweigh the investment.
One major issue companies face today is deciding where to store their data. Many businesses (90%) prefer to store data locally, believing it's safer, even though it can be more expensive and complicated. At the same time, more businesses are trusting large global providers -- companies like Cisco itself -- to handle their data securely. As many as 91% of companies now believe global providers offer better protection, up from 86% the previous year.
As AI technologies, particularly generative AI tools like ChatGPT, have become more common, the study found that 63% of respondents say they now understand these technologies well. However, professionals' growing use of AI has introduced new risks.
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Almost two-thirds (64%) of professionals worry about accidentally sharing sensitive or confidential information through AI tools. Surprisingly, nearly half said they've already put private or employee data into AI systems, showing a real gap between knowing the risks and taking action.
Dev Stahlkopf, Cisco's chief legal officer, said strong privacy practices are essential for the safe use of AI: "For businesses moving towards using AI, privacy measures form the necessary groundwork to manage AI responsibly."
Cisco's study found that companies are shifting budgets from general privacy spending to AI-related efforts. Nearly all businesses (99%) plan to allocate some privacy funding toward AI over the next year.
Cisco wrapped up its findings by looking at consumer views on privacy. According to its "2024 Consumer Privacy Survey," over half of global consumers (53%) are aware of privacy laws in their countries. Among these respondents, 81% feel confident in their ability to protect their data -- compared to just 44% who are unaware of such laws.
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Overall, the study shows that good privacy practices aren't just about legal compliance -- they're a key part of business success. As AI becomes more popular, companies that handle data responsibly are more likely to earn customer trust and stay competitive.