Cisco's 2025 Data Privacy Benchmark Study reveals key insights that highlight the evolving landscape influenced by artificial intelligence (AI) and shifting regulatory frameworks.
Amid rising operational costs associated with data localization, 90% of organisations believe that storing data locally is inherently safer. This perception drives a growing demand for data sovereignty, even as 91% of respondents express trust in global providers for superior data protection.
“The drive for data localization reflects rising interest in data sovereignty,” notes Harvey Jang, Cisco’s Chief Privacy Officer. This duality underscores a critical tension: while local storage is perceived as safer, the expertise of global providers is invaluable.
Harvey Jang at a Cisco Live interview
The study also highlights that 86% of respondents support privacy legislation, recognising its positive impact on business operations. Compliance with these regulations is increasingly seen as a cornerstone of customer trust.
“Privacy legislation remains a cornerstone of customer trust,” comments Jang. This sentiment is echoed by a significant 96% of organisations, who report that their privacy investments yield returns far exceeding their costs.
As digital transformation accelerates, the integration of AI into business processes raises fresh concerns about data privacy. Familiarity with Generative AI is rising, with 63% of respondents indicating they are very familiar with it. However, 64% express worries about inadvertently sharing sensitive information. This gap highlights a pressing need for robust governance frameworks.
“Privacy and proper data governance are foundational to Responsible AI,” asserts Dev Stahlkopf, Cisco's Chief Legal Officer, emphasising the importance of a solid privacy foundation for effective AI governance.
Looking ahead, organisations are expected to shift resources from privacy budgets to AI initiatives, with 99% of respondents anticipating reallocations in the coming year. The Cisco AI Readiness Index supports this trend, predicting that IT budget allocations for AI will nearly double as companies strive to implement AI technology safely.
For CISOs and security leaders in Asia, these findings underline the necessity of balancing local data storage and global expertise while ensuring compliance with evolving privacy laws. The ability to navigate this complex landscape will not only enhance operational resilience but also foster greater customer trust and loyalty in an increasingly AI-driven world. As businesses adapt to these changes, strategic investments in privacy and AI governance will be crucial for sustainable growth.