Cisco's 2025 Data Privacy Benchmark Study: Navigating AI and Privacy in the Digital Age

Want AI to work for your business? Then privacy needs to come first

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. Also: The best free AI courses and certificates in 2025 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. Also: Why the 'Bring Your Own AI' trend could mean big trouble for business leaders 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. Also: Gartner to CIOs: Prepare to spend more money on generative AI Nearly all businesses (99%) plan to allocate some privacy funding toward AI over the next year. Cisco said its "2024 AI Readiness Index" shows that companies expect to nearly double their AI-related IT budgets, underscoring their serious attitude to AI safety. 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. Also: Is your business AI-ready? 5 ways to avoid falling behind 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.

Unlocking the Privacy Advantage to Build Trust in the Age of AI

In our interconnected world, data privacy has become increasingly important. The Cisco 2025 Data Privacy Benchmark Study, which gathered perspectives from 2,600+ privacy and security professionals across 12 countries, paints a dynamic picture of the state of privacy today. Ninety percent of organizations believe local data storage is inherently safer than globally distributed storage despite higher operational costs. However, 91% -- a five-percentage point increase from the past year -- recognize global providers are better positioned to safeguard their data. This reflects the compromise that businesses face when deciding where to store data: balancing the desire to store data locally with the extensive capabilities, enhanced security, and availability offered by global providers. Privacy legislation continues to be a pillar of trust for businesses and customers alike. Ever since the European Union introduced the General Data Protection Regulation (GDPR), we've seen more than 160 countries leverage the GDPR as a template for creating their own privacy laws. An overwhelming 86% of respondents recognized the positive impact of privacy laws on their organizations, reflecting a 6% increase from previous years. While compliance does come at a cost, 96% of organizations report that the returns on privacy investments outweigh the expense. This growing appreciation for privacy laws is also evident among consumers. According to the Cisco 2024 Consumer Privacy Survey, more than half of global consumers are now aware of their country's privacy regulations, and among them, a significant 81% express confidence in their ability to protect their data. This is a testament to how awareness of laws can significantly boost consumer confidence and spending. Regulation brings confidence, but also complexity. Without consistency across jurisdictions, the regulatory patchwork poses challenges for global businesses -- often hindering efficient operations and requiring bespoke compliance solutions across borders. Consequently, there is significant consensus among industry leaders on the business value of interoperability, emphasizing the need for streamlined data governance frameworks. Initiatives such as Data Free Flow with Trust (DFFT) are gaining traction, advocating for international collaboration and the seamless exchange of data across nations while ensuring robust, consistent privacy safeguards. Artificial Intelligence offers substantial business value while also introducing novel privacy and security risks. Our study reveals that 64% of respondents are concerned about inadvertently sharing sensitive information through public AI tools. Despite these concerns, nearly half admit to using these tools with personal and non-public data. This underscores the urgent need for robust AI security and privacy frameworks and controls to protect non-public data during development, deployment, and use of AI. Forward-thinking organizations understand privacy and AI governance are complementary and interdependent. Ninety-nine percent of respondents are planning to reallocate resources from privacy to AI initiatives, highlighting a shift in focus. However, it is crucial that these investments remain grounded in privacy principles. At Cisco, we view privacy as a fundamental human right and business imperative, integral to our approach to Responsible AI. By embedding privacy into AI risk assessments and strategies, businesses can create a framework that serves as a guiding North Star, ensuring they adapt and evolve responsibly while prioritizing the interests of their customers and stakeholders. As businesses navigate the intricate balance between local data storage, global expertise, and AI integration, it's imperative to view privacy not just as a "check-the-box" compliance exercise, but as a strategic investment and business imperative. We've only just scratched the surface when it comes to the potential AI holds for innovation and efficiency. As we enter this next chapter of the digital economy, privacy will continue to be a trust driver for customers, business, and society at large. Explore these trends and more in the Cisco 2025 Data Privacy Benchmark Study.

Cisco's 2025 Data Privacy Report Highlights AI's Growing Impact on Security

Cisco 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.

Cisco's 2025 Data Privacy Benchmark Study: Privacy landscape grows increasingly complex in the age of AI

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 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 percent 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 on The Newsroom and follow us on X at @Cisco.