The
48% admit entering non-public company information into GenAI tools.
91% of businesses recognize they need to do more to reassure customers that their data is used for intended and legitimate purposes in AI.
98% said that external privacy certifications are an important factor in their buying decisions, the highest level in years.
Growing Privacy Concerns with Generative AI
'Organizations see GenAI as a fundamentally different technology with novel challenges to consider,' said
Among the top concerns, businesses cited the threats to an organization's legal and Intellectual Property rights (69%), and the risk of disclosure of information to the public or competitors (68%).
Concerns with GenAI
Most organizations are aware of these risks and are putting in place controls to limit exposure: 63% have established limitations on what data can be entered, 61% have limits on which GenAI tools can be used by employees, and 27% said their organization had banned GenAI applications altogether for the time being. Nonetheless, many individuals have entered information that could be problematic, including employee information (45%) or non-public information about the company (48%).
Slow Progress on AI and Transparency
Consumers are concerned about AI use involving their data today, and yet 91% of organizations recognize they need to do more to reassure their customers that their data is being used only for intended and legitimate purposes in AI. This is similar to last year's levels, suggesting that not much progress has been achieved.
Organizations' priorities to build consumer trust differ from those of individuals. Consumers identified their top priorities as getting clear information on exactly how their data is being used, and not having their data sold for marketing purposes. When asked the same question, businesses identified their top priorities as complying with privacy laws (25%) and avoiding data breaches (23%). It suggests additional attention on transparency would be helpful - especially with AI applications where it may be difficult to understand how the algorithms make their decisions.
Organizations recognize the need to reassure their customers about how their data is being used, and 98% said that external privacy certifications are an important factor in their buying decisions. This is the highest we've seen over the years.
'94% of respondents said their customers would not buy from them if they did not adequately protect data,' explains
Despite the costs and requirements privacy laws may impose on organizations, 80% of respondents said privacy laws have had a positive impact on them, and only 6% said the impact has been negative. Strong privacy regulation boosts consumer confidence and trust in the organizations they choose to share their data with.
Further, many governments and organizations are putting in place data localization requirements to keep certain data within country or region. Whilst most businesses (91%) believe that their data would be inherently safer if stored within their country or region, 86% also said that a global provider, operating at scale, can better protect their data compared to a local provider.
Privacy: a
Over the past five years, privacy spending has more than doubled, benefits have trended up, and returns have remained strong. This year, 95% indicated that privacy's benefits exceed its costs, and the average organization reports getting privacy benefits of 1.6 times their spending. Further, 80% indicated getting significant 'Loyalty and Trust' benefits from their privacy investments, and this is even higher (92%) for the most privacy-mature organizations.
In 2023, largest organizations (10,000+ employees) increased their privacy spending by seven to eight percent since last year. However, smaller organizations saw lower investment, for example, businesses with 50-249 employees decreased their privacy investment by a fourth on average.
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