Artificial intelligence (AI) comes with a sky-high business upside — and privacy pitfalls.
That is the general takeaway from Cisco Systems Inc.’s annual 2025 Data Privacy Benchmark Study that assesses the upside, and challenges, integrating AI into enterprises
“Privacy and proper data governance are foundational to Responsible AI,” Cisco Chief Legal Officer Dev Stahlkopf said in a statement announcing the study. “For organizations working toward AI readiness, privacy investments establish essential groundwork, helping to accelerate effective AI governance.”
The study, based on opinions of 2,600 privacy and security professionals across a dozen countries, found that while 63% were “very familiar” with Generative AI, they remain concerned about unintended risks. Notably, 64% of respondents admitted they worry about inadvertently sharing sensitive information publicly or with competitors, yet nearly half admit to inputting personal employee or non-public data into GenAI tools.
To that end, 99% of respondents anticipate reallocating resources from privacy budgets to AI initiatives in the future to address AI governance processes.
This is because privacy legislation remains a cornerstone of customer trust, with 86% of respondents noting a positive impact on their organizations, compared with 80% last year. Despite costs associated with compliance, a resounding 96% of organizations report that returns significantly outweigh investments.
All told, the study illustrates good privacy practices aren’t just about legal compliance: They are a crucial piece of business success — especially as AI becomes more popular, necessitating companies more adroitly handle data responsibly not only for their sake but for their customers.
Cisco said its study “highlights the need for organizations to balance local data storage, global expertise, and privacy in an AI-driven world.”
Indeed, Guy Diedrich, Cisco’s global innovation officer, says AI skilling is essential among employees and is a major goal within Cisco. The company plans an ambitious program to familiarize and train its thousands of workers with the technology.
“The market has changed so quickly. There is historic comparison between what is happening now and what occurred in the industrial age, information age, and the rise of the internet,” Diedrich said in an interview. “We are in an AI micro moment.”
“In the next three to four years, AI will be so ingrained and ubiquitous as part of our everyday lives, which includes work,” he said. “The old notion about a job description is passe. Pretty soon, we will have access to every bit of information ever known on planet Earth.”
