It has been a few issues since we have discussed a widespread trend in customer behavior that has impacted how companies do business; the importance of safeguarding consumers’ privacy. In the age of AI, it is more important than ever for companies to take proactive and intentional steps to protect the privacy of our personal data. There is publicly observable data to support this, including Google Trends: the term “cybersecurity” has seen a nearly 250% surge in popularity over the last five years. Research also shows that there has been a significant increase in the number of people who have experienced a cybersecurity breach in the last decade. Additionally, there is private company data that signals the extent of this shift, as well.
With the recent release of Cisco’s “2024 Consumer Privacy Survey,” the company’s chief privacy officer agreed that “privacy has grown from a compliance matter to a customer requirement.” This claim is bolstered by the survey’s findings: 75% of respondents indicated that trust in data practices influences their buying choices. This is perhaps a result of the fact that more than 50% of respondents are aware of public privacy laws, which represents a notable rise from past surveys. This increased awareness makes sense when one considers a correlated rise in data breaches, sales of customer data, and a collective back-of-the-mind concern that companies may steal data without customer awareness.
Regardless of whether customers understand the complexity of privacy laws (which can be chock-full of legalese), we all have a general opinion about what it means to ethically handle our own personal data. Other customer surveys, such as the PwC Voice of the Consumer Survey, suggest that consumers overwhelmingly (as high as 80%) require assurances from companies that their data will neither be shared improperly nor sold. This is roughly the same number of respondents who are concerned about the utilization of generative AI in complex industries, such as healthcare. The advent of generative AI represents a potential turning point for companies: if the privacy concerns surrounding AI are not carefully addressed, the backlash could be immense. Because if these end-of-year surveys prove one thing, it is that customer privacy is of critical importance.
