Privacy is a key to customer trust, stydy reveals
The recent Cisco 2024 Data Privacy Benchmark Study, unveiled on January 25th, reveals critical insights into the intersection of customer trust and data privacy. The study, which surveyed over 2,600 security and privacy professionals across 12 regions, highlights that a staggering 94% of organizations believe their customers would hesitate to make purchases if data protection was inadequate. Moreover, 98% of customers consider external privacy certifications, such as ISO 27701 and APEC Cross-Border Privacy Rules, vital in their purchasing decisions, emphasizing the need for businesses to provide clear evidence of their data privacy measures.
Despite the costs and demands that privacy laws impose on organizations, such as data cataloging, implementing controls, and handling user requests, there is a strong consensus on the benefits of these regulations. A significant 80% of respondents viewed privacy laws positively, with only 6% perceiving a negative impact. Economically, privacy investments are seen as lucrative, with a 1.6 times return on investment reported in the study. This translates to an average benefit of €144 for every €90 spent on privacy, based on the average privacy budget of €2.43 million in 2023.
However, the study indicates a lag in progress regarding artificial intelligence (AI) and transparency. Sixty percent of consumers have lost trust in organizations due to their AI practices, and 91% of professionals believe more should be done to assure customers of the legitimate use of their data in AI. Efforts to bolster confidence include involving humans in AI processes, enhancing transparency, and establishing AI ethics management programs, each initiative supported by roughly half of the organizations.
Generative AI, capable of swiftly creating new content, is seen as valuable by 79% of respondents, yet it also poses risks, particularly in safeguarding personal or confidential data. Over two-thirds express concern over potential data leaks to competitors or the public. To mitigate these risks, many organizations are implementing control mechanisms and educating employees about the challenges associated with generative AI tools.
Via: Study: Privacy is a key to customer trust
