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RESEARCH, ANALYSIS & TRENDS

Consumers demand more transparency

when it comes to data privacy

Disconnect between business and consumers
when it comes to AI

Ever-evolving technologies make it difficult for
consumers to trust companies with their data. Most
respondents believe the potential benefits of AI
outweigh the risk, provided proper de-identification is in
place, with 54% willing to share their anonymized
personal data to help improve AI-based products and
decision-making.
Cisco just published its 2022 Consumer Privacy However, there is a disconnect between businesses
Survey, an annual global review of consumers' and consumers: while 87% of organizations believe
perceptions and behaviors on data privacy. they have processes in place to ensure automated
decision-making is done in accordance with customer
This year's survey highlights the critical need for further expectations, 60% of respondents expressed concern
transparency as consumers say their top priority is for about how organizations are using their personal data
organizations to be more transparent on how they use for AI.
their personal data. The survey also showed that while, Powerful steps organizations can take to address this
in theory, consumers are supportive of AI, with 54% include giving consumers the opportunity to opt-out of
willing to share their anonymized data to improve AI the AI application and explain how their AI application
products, many (65%) have lost trust in organizations works.
due to their use of AI.
Desire for government to play a primary role
"Organizations need to explain their data practices in
simple terms and make them readily available so that Finally, more than half said national or local
customers and users can understand what is going on government should play the primary role when it comes
with their data. It is not just legally required; trust to protecting consumers data. Many consumers do not
depends on it," says Harvey Jang, Cisco Vice trust private companies to be responsible with personal
President, Deputy General Counsel and Chief Privacy data on their own accord.
Officer.
As governments and organizations continue to demand
This year, 81% of respondents agreed that the way an protections on data transferred outside their national
organization treats personal data is indicative of how it borders, more are putting in place data localization
views and respects its customers – the highest requirements, demanding data to be physically stored
percentage since Cisco began tracking it in 2019.
in the country or region where it was collected.
Consumers are increasingly taking action Yet data localization comes at a price. The Cisco 2022
Data Privacy Benchmark Study reported that 88% of
In response to the erosion of trust in organizations' surveyed organizations experience significant
ability to protect data, many consumers are taking additional operational costs due to data localization.
action to better protect their data themselves, e.g.:
Consumers are evenly split on the value of data
localization (41% in favor, 41% against) if it adds cost
• 76% say they would not buy from a company who
they do not trust with their data to the products and services they buy.
"We hope that the insights from this survey will
• 37% indicated they had indeed switched providers motivate organizations to continue to prioritize their
over data privacy practices
customers' desire for security, privacy, and
transparency," said Brad Arkin, Cisco Senior Vice
• 53% say they manage their cookie settings from a
website before accepting President, Chief Security and Trust Officer. ◊
By MediaBUZZ
• 46% of those with a home listening device say they
turn it off regularly to protect their privacy
6 October 2022: Customer Journey & Experience Marketing