A recent study conducted by Cisco reveals that organizations are taking measures to limit exposure to generative AI technology. Concerns over privacy and data security risks have led to temporary bans on the use of generative AI in 27% of organizations. Additionally, organizations are inputting non-public company information into generative AI tools [3] [4], raising concerns about legal and intellectual property rights [3] [5], as well as the sharing of sensitive and potentially incorrect information.
Description
The study highlights that 63% of organizations are implementing controls to limit exposure to generative AI technology. This aligns with the finding that 27% of organizations have temporarily banned the use of generative AI due to concerns over privacy and data security risks. Furthermore, 48% of organizations admit to inputting non-public company information into generative AI tools [4], raising concerns about potential harm to legal and intellectual property rights [2], as well as the public sharing of sensitive information and the possibility of incorrect information being returned to users.
The study also emphasizes the importance of privacy professionals reassuring customers about the use of data in AI. 91% of businesses acknowledge this need and understand the importance of using customer data for intended and legitimate purposes in AI. To address these concerns [5], organizations have invested $2.7 million in privacy spending to ensure data privacy [1]. Additionally, 98% of organizations consider external privacy certifications as an important factor in their purchasing decisions [4], highlighting the high level of importance placed on data privacy [4].
Conclusion
Customer trust depends on thoughtful governance and proper data protection. Data privacy has become a key boardroom issue [2], with privacy metrics such as audit results, data breaches [2], data subject requests [2], and incident response being reported to the board. The majority of respondents support the implementation of data privacy laws by governments [2], as they believe these laws have had a positive impact on their organizations [2]. Compliance with these laws provides evidence to consumers that their data is adequately protected [2], which is essential for building and maintaining customer trust and loyalty, especially in the era of AI [2].
References
[1] https://www.hrreporter.com/focus-areas/automation-ai/over-1-in-4-canadian-companies-ban-use-of-generative-ai-over-privacy-concerns/383176
[2] https://www.infosecurity-magazine.com/news/banning-generative-ai-privacy-risks/
[3] https://www.constellationr.com/blog-news/insights/privacy-data-concerns-abound-enterprise-says-cisco-study
[4] https://newsroom.cisco.com/c/r/newsroom/en/us/a/y2024/m01/organizations-ban-use-of-generative-ai-over-data-privacy-security-cisco-study.html
[5] https://betanews.com/2024/01/25/privacy-fears-lead-enterprises-to-ban-genai-use/
