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Enterprises Cautious of GenAI : Data Privacy and Security Concerns Prevail

Sunny by Sunny
January 30, 2024
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GenAI : Organizations are confronting increasing privacy challenges associated with the adoption of generative artificial intelligence (GenAI), even as they experience positive returns on privacy-focused investments, according to Cisco’s latest Data Privacy Benchmark Study. The study, which surveyed 2,600 privacy and security professionals across 12 regions, provides an annual overview of key privacy issues impacting businesses.

Enterprises Wary of GenAI

In the current digital landscape, data holds significant value, and protecting it goes beyond mere compliance—it is now a crucial business necessity. The study emphasizes a crucial aspect: 92 percent of respondents recognize that customer trust and loyalty are jeopardized if data protection measures are inadequate, as stated by Samir Kumar Mishra, Director of Security Business at Cisco India and SAARC.

This highlights the pivotal role robust privacy practices play in influencing customers’ purchasing decisions and signals a notable shift in how companies are addressing these concerns. Cisco’s Chief Legal Officer, Dev Stahlkopf, points out that organizations perceive GenAI as a fundamentally different technology presenting novel challenges. Over 90 percent of respondents believe that managing data and risks associated with GenAI requires new techniques, underlining the importance of thoughtful governance.

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The study also sheds light on the privacy landscape in India, revealing that 92 percent of respondents acknowledge that customers are unlikely to buy from them if their data protection measures are insufficient the highest level recorded in recent years. External privacy certifications are deemed important in purchasing decisions by all respondents.

Ethical data use is a responsibility, according to 98 percent of Indian respondents, while 96 percent see privacy not just as a compliance obligation but as a business imperative. The study indicates that the benefits of privacy outweigh the associated costs, with 95 percent of respondents in India expressing the need to reassure customers about the intended and legitimate use of their data in AI processes.

Data localization emerges as a prominent theme, with 97 percent of respondents believing that storing data within their country or region inherently enhances its safety. However, 96 percent also acknowledge that data localization introduces additional costs to businesses. In conclusion, organizations are navigating the complex landscape of privacy concerns, recognizing the need for ethical data practices and the challenges posed by emerging technologies like GenAI.

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