Privacy concerns are increasing due to AI, companies are becoming cautious

Many companies are facing increasing privacy concerns over the use of Generative Artificial Intelligence (GenAI). According to Cisco’s latest Data Privacy Benchmark Study, privacy certainly offers attractive returns on investment, but privacy concerns over the use of GenAI are also growing.

This conclusion has been drawn based on conversations with 2,600 privacy and security professionals from 12 countries during the study. Dev Stalkoff, Cisco’s chief legal officer, said, ‘Companies view GenAI as a fundamentally different technology, which requires consideration of a number of new challenges.’

He said, ‘More than 90 percent of the participants believe that GenAI requires new technology to manage data and risk. This needs to be considered because maintaining customer trust depends on it.

The findings of this report about India revealed that 92 per cent of the participants believed that they would not purchase from their customers if they did not keep their data adequately protected.

Data security is receiving increasing attention in recent years. 100% of participants said that external privacy certification is an important factor influencing customers’ purchasing decisions.

In India, 98 percent of the participants said that it is the responsibility of companies to use data ethically. Similarly, 96 percent of the participants agreed that privacy is a business imperative and not just a compliance burden. Nearly 95 percent of participants indicated that the benefits of privacy outweigh its costs.

In India, 95 per cent of respondents agreed that they needed to do more to reassure their customers. Customers should be assured that their data is being used in AI only for intended and lawful purposes. 69 per cent of respondents in India said companies are ensuring that humans are involved in the process of using data and re-assuring customers about AI.

As far as data localization is concerned, 97 percent of the participants said that if the data is stored in its own country or region, it will be much safer. But 96 percent of the participants said that data localization will increase the cost of business.

88 percent of respondents in India said that privacy laws have had a positive impact on their business. Only 6 percent of respondents said the privacy law had a negative impact on their business.

Sameer Kumar Mishra, Director (Security Business – India and SAARC), Cisco, said, “Data is a very valuable asset in today’s digital-first world. Therefore, its security is not just a matter of compliance but also a business imperative.

This study highlights an important reality. About 92 percent of the participants believed that customer trust could be at stake if data security measures fall short. “This shows that strong privacy practices play an important role in influencing customers’ purchasing decisions.”

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