News Summary
- Cisco's 2023 Data Privacy Benchmark Study reveals that to build
trust, organizations focus primarily on compliance, whereas
consumers value transparency most. 92% of respondents say their
organization needs to do more to reassure customers about how their
data is used in AI.
- Organizations are getting a strong 1.8 times return on their
privacy investments, with estimated benefits up significantly in
the past year.
- 90% of respondents believe global providers can better protect
their data compared to local providers.
- The benchmark is an anonymous survey across 26 geographies* of
more than 3100 security professionals familiar with data
privacy.
SAN
JOSE, Calif., Jan. 24,
2023 /CNW/ -- Today, Cisco published its
2023 Data Privacy Benchmark Study. The sixth annual global
survey investigates professionals' perspectives on data privacy
strategies. This year's study finds that despite a difficult
economic environment, organizations continue to invest in privacy,
with spending up significantly from $1.2
million just three years ago to $2.7
million this year. Yet, 92 percent of respondents believe
their organization needs to do more to reassure customers about
their data. The survey also finds that organizations' privacy
priorities differ from those expressed by consumers.
Disconnect between consumers' expectations and
organizations' privacy strategies
The study finds a
significant disconnect between data privacy measures by companies
and what consumers expect from organizations, especially when it
relates to how organizations apply and use Artificial Intelligence
(AI).
The Cisco 2022 Consumer Privacy Survey showed 60 percent of
consumers are concerned about how organizations apply and use AI
today, and 65 percent already have lost trust in organizations over
their AI practices. Consumers also said the top approach for making
them more comfortable would be to provide opportunities for them to
opt out of AI-based solutions. Yet, the privacy benchmark shows
providing opt-out opportunities was selected least (22 percent)
among the options organizations would put in place to reassure
consumers.
"When it comes to earning and building trust, compliance is not
enough," said Harvey Jang, Cisco
Vice President and Chief Privacy Officer. Transparency was the top
priority for consumers (39 percent) to trust companies, whilst
organizations surveyed felt compliance was the number one priority
for building customer trust (30 percent).
Even though 96 percent of organizations believe they have
processes in place to meet the responsible and ethical standards
that customers expect for AI-based solutions and services, 92
percent of respondents believe their organization needs to do more
to reassure customers about their data.
Privacy's return on investment
Despite a
difficult economic environment, organizations continue to invest in
privacy, with spending up from $1.2
million three years ago to $2.7
million this year. Over 70 percent of organizations surveyed
indicated they were getting "significant" or "very significant"
benefits from privacy investments, such as building trust with
customers, reducing sales delays, or mitigating losses from data
breaches. On average, organizations are getting benefits estimated
to be 1.8 times spending, and 94 percent of all respondents
indicated they believe the benefits of privacy outweigh the costs
overall.
With privacy as a critical business priority, more organizations
recognize that everyone across their organization plays a vital
role in protecting data. This year, 95 percent of respondents said
that "all of their employees" need to know how to protect data
privacy.
"An organization's approach to privacy impacts more than
compliance," said Dev Stahlkopf, Cisco Executive Vice President and
Chief Legal Officer. "Investment in privacy drives business value
across sales, security, operations, and most importantly,
trust."
Costs of data localization and greater trust in global
providers
Privacy legislation plays an important role in
enabling governments to hold organizations accountable for how they
manage personal data, and 157 countries (up from 145 last year) now
have privacy laws in place. Even though complying with these laws
involves significant effort and cost, 79 percent of all corporate
respondents said privacy laws have had a positive impact.
Although 88 percent of respondents believe their data would be
safer if stored only within their country or region, research
indicates this does not hold up once costs, security and other
trade-offs are considered. Remarkably, 90 percent also said that a
global provider, operating at scale, can better protect the data
compared to local providers.
Additional resources
- Cisco 2023 Data Privacy Benchmark Study
- Infographic
- Blog - Privacy's impact continues to grow but more remains to
be done
- Cisco 2022 Consumer Privacy Survey
*Australia, Brazil, Canada, Chile, China,
Columbia, France, Germany, Hong
Kong, India, Indonesia, Italy, Japan,
Malaysia, Mexico, Philippines, Saudi
Arabia, Singapore,
South Korea, Spain, Taiwan, Thailand, The
Netherlands, UK, US, and Vietnam.
About Cisco
Cisco (NASDAQ: CSCO) is the worldwide leader in technology that
powers the Internet. Cisco inspires new possibilities by
reimagining your applications, securing your data, transforming
your infrastructure, and empowering your teams for a global and
inclusive future. Discover more on The Newsroom and follow us
on Twitter at @Cisco.
Cisco and the Cisco logo are trademarks or registered trademarks
of Cisco and/or its affiliates in the U.S. and other countries. A
listing of Cisco's trademarks can be found at
www.cisco.com/go/trademarks.
View original content to download
multimedia:https://www.prnewswire.com/news-releases/ninety-two-percent-of-organizations-think-they-need-to-do-more-to-reassure-customers-about-how-their-data-is-used-in-ai-new-cisco-research-finds-301729137.html
SOURCE Cisco Systems, Inc.