Consumers want more transparency around how their personal data is used and protected according to the most recent survey of consumer perceptions conducted by Cisco.
The Cisco 2022 Consumer Privacy Survey also found that consumers are generally supportive when it comes to the use of artificial intelligence (AI) but remain concerned about how businesses use AI – 65 per cent say they have lost trust in organizations over their use of AI, despite the fact that, in theory, 54 per cent said they were willing to share their anonymized data to improve AI products.
The firm says organizations need to explain their data practices in simple terms and make those explanations readily available. The survey found that 81 per cent of respondents agreed that the way an organization treats personal data is indicative of how it views and respects its customers.
Of the 2,600 adults in 12 countries who responded to the fourth annual survey, 76 per cent said they would not buy from a company if they did not trust it with their data. Among those surveyed, 37 per cent said they have in the past switched providers over an organization’s data practices.
The firm also says there is a disconnect between companies and consumers. Although 87 per cent of organizations say they believe they have processes in place to ensure that AI decision making is done in accordance with customer expectations, 60 per cent of respondents expressed concern about how organizations were using their personal data to power AI applications. “Powerful steps organizations can take to address this include giving consumers the opportunity to opt-out of the AI application,” Cisco writes.
The report also breaks trust and loss of trust down by AI application: 48 per cent said they would trust a company less if it used AI to determine who qualifies for a job interview; 30 per cent said they would trust a company less if their information was used to automatically select a sales representative for them.
They continue, saying more than half said government should play the primary role when it comes to protecting consumer data. “Many consumers do not trust private companies to be responsible with personal data on their own accord,” they say, but add that awareness about existing privacy laws around the world remains low among survey respondents. Only 43 per cent of respondents in countries with national privacy laws were aware of their country’s laws.
To help, Cisco says companies can build consumer trust by complying with all applicable privacy laws and by refraining from selling personal information. They also recommend avoiding data breaches and investing in a way that allows customers to configure their own privacy settings. They also suggest companies invest in transparency and provide clear information about how the customer’s personal data is being used.
Among those surveyed, “43 per cent of respondents said they are unable to protect their data effectively. The main reason – cited by 79 per cent – is that it’s too hard for them to know and understand how companies are using their data,” the report states.
To conclude, the report also looks at how much consumers value data localization.
“As governments and organizations continue to demand protections on data transferred outside their national borders, more are putting in place data localization requirements, requiring data to be physically stored in the country where it was collected,” Cisco researchers write, adding that 78 per cent of respondents initially thought data localization was a good idea. Another survey, the Cisco 2022 Data Privacy Benchmark Study reported that 88 per cent of organizations were experiencing significant operational cost increases related to localization requirements.
“When respondents were asked the same question under the assumption that localization would make the products and services they buy more expensive, they were far less supportive with only 41 per cent in favour of localization.”
