Cisco has released its 2025 Data Privacy Benchmark Study, offering an in-depth analysis of global privacy trends and their impact on businesses. As data privacy continues to be a cornerstone of trust and business value, the study explores the challenges organizations face in balancing local data storage with the expertise of global providers.

Based on insights from 2,600 privacy and security professionals across 12 countries, the study underscores the growing importance of strong data privacy foundations in maximizing AI’s potential. Cisco’s Chief Legal Officer, Dev Stahlkopf, emphasized the role of privacy in AI governance, stating, “Privacy and proper data governance are foundational to Responsible AI. Privacy investments establish essential groundwork for AI readiness and governance.”

Despite the higher operational costs of data localization, 90% of organizations perceive local storage as inherently safer, while 91% trust global providers for enhanced data protection—a five-percentage-point increase from the previous year. Cisco’s Chief Privacy Officer, Harvey Jang, noted that while data sovereignty is a growing priority, cross-border data flows remain vital for the global digital economy.

Privacy legislation continues to strengthen consumer trust, with 86% of organizations recognizing its positive impact, up from 80% last year. Additionally, Cisco’s 2024 Consumer Privacy Survey found that 53% of global consumers are aware of their country’s privacy laws, and among them, 81% feel confident in protecting their data—nearly double the confidence level of those unaware of such regulations.

With 63% of respondents now highly familiar with Generative AI (GenAI), concerns about data privacy risks remain consistent. While businesses report substantial gains from GenAI, 64% worry about inadvertently sharing sensitive information, yet nearly half admit to inputting non-public data into AI tools. This highlights the need for enhanced security measures, such as Cisco’s AI Defense, to mitigate risks of AI misuse and data leakage.

A striking 99% of organizations plan to reallocate privacy budgets to AI initiatives, reflecting a growing emphasis on responsible AI governance. According to the 2024 Cisco AI Readiness Index, IT budget allocations for AI governance are expected to nearly double in the coming year.

As AI adoption accelerates, Cisco’s latest study underscores the critical balance between data governance, privacy, and AI strategy. With businesses prioritizing both compliance and innovation, investing in robust AI governance frameworks will be essential for long-term growth and consumer trust.