AI fuels surge in data privacy investments and redefines governance, Cisco report
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Cisco’s 2026 Data and Privacy Benchmark Study indicates that organizations are expanding privacy and data governance programs as AI adoption accelerates and the demand for high-quality data increases. Based on a survey of 5,200 IT, technology, and security professionals across 12 markets, the study shows that 90% of organizations have expanded their privacy programs, with 93% planning further investments to manage the growing complexity of AI systems and regulatory expectations. Global spending on privacy programs has also risen, with 38% of organizations reporting annual investments of $5 million or more, up from 14% in 2024.The findings highlight a growing link between privacy, AI innovation, and trust. Nearly all respondents said strong privacy frameworks support AI agility and are essential for building customer trust in AI-driven services. In India, while close to two-thirds of organizations report having an AI governance body, only 12% consider these structures mature. At the same time, 70% of organizations struggle to efficiently access relevant, high-quality data as datasets become more complex and distributed.
The study also points to increasing challenges around global data flows. In India, 91% of respondents said data localization requirements add cost, complexity, and risk to cross-border operations, and 87% said such requirements affect their ability to deliver seamless services across markets. A large majority of respondents supported the need for more harmonized international standards to enable secure cross-border data flows while maintaining strong data protection and trust in an AI-driven environment.
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