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Most customers don't trust organisations over their data use in AI

Despite a difficult economic environment, organisations continue to invest in privacy, with spending up significantly from $1.2 million just three years ago to $2.7 million on average this year

Topics
Artificial intelligence | Data centre | mobile application

IANS  |  Bengaluru 



data protection bill
Photo: Bloomberg

More than nine in 10 organisations think they need to do more to reassure customers about how their data is used in (AI), clearly stating the lack of trust the people have regarding their data use for AI, new research revealed on Monday.

Despite a difficult economic environment, organisations continue to invest in privacy, with spending up significantly from $1.2 million just three years ago to $2.7 million on average this year, according to Cisco's '2023 Data Privacy Benchmark Study'.

However, the research found a significant disconnect between data privacy measures by and what consumers expect from organisations, especially when it relates to how they apply and use AI.

"When it comes to earning and building trust, compliance is not enough," said Harvey Jang, Cisco Vice President and Chief Privacy Officer.

Transparency was the top priority for consumers (39 per cent) to trust companies, whilst organisations surveyed felt compliance was the number one priority for building customer trust (30 per cent).

Even though 96 per cent of organisations believe they have processes in place to meet the responsible and ethical standards that customers expect for AI-based solutions and services, 92 per cent of respondents believe their organisation needs to do more to reassure customers about their data.

Over 70 per cent of organisations surveyed indicated they were getting "significant" or "very significant" benefits from privacy investments, such as building trust with customers, reducing sales delays, or mitigating losses from data breaches.

On average, organisations are getting benefits estimated to be 1.8 times spending, and 94 per cent of all respondents indicated they believe the benefits of privacy outweigh the costs overall.

Although 88 per cent of respondents believe their data would be safer if stored only within their country or region, research indicates this does not hold up once costs, security and other trade-offs are considered.

--IANS

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(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)


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First Published: Mon, January 30 2023. 11:57 IST

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