Cisco’s Benchmark Study: Privacy Landscape Complicated by AI

The rapid evolution of Artificial Intelligence has caused shifts in data privacy and the approaches to protecting it, according to recent research by Cisco.

The San Jose-based company recently unveiled its 2025 Data Privacy Benchmark Study, offering an analysis of privacy trends and implications, exploring a complex landscape where the demand for local data storage intersects with reliance on global providers’ expertise.

“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.”

Despite increased operational costs of data localization, 90% of organizations see local storage as inherently safer, while 91% (up five percentage points year-over-year) trust global providers for better data protection, according to the report. 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.”

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, 96% of organizations report that the returns significantly outweigh the investments.

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. In turn, the data show 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.

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.

Channel Impact^®
Partners need to balance local data storage, global expertise, and privacy in an AI-driven world, viewing data governance as an essential strategic investment for aligning AI strategies with privacy.