Cisco Report Links AI to Higher Data Privacy Investment

Organizations worldwide are expanding data privacy programs and increasing investments in data governance as artificial intelligence (AI) adoption accelerates, according to a new report released by Cisco.

The company released findings from its 2026 Data and Privacy Benchmark Study showing that 90% of surveyed organizations have expanded their privacy programs and 93% plan additional investments to address the growing complexity of AI systems and rising expectations from customers and regulators.

The survey was conducted among 5,200 IT, technology and security professionals with data privacy responsibilities across 12 global markets, highlighting a shift in how organizations approach data protection and governance in an AI-driven environment.

The study found that 38% of organizations spent at least $5 million on privacy initiatives in the past year, up from 14% in 2024. Most respondents said strong privacy frameworks help unlock agility and innovation while supporting trust in AI-enabled services.

Despite progress, the report found that governance structures remain a challenge. Only about 12% of surveyed organizations described their AI governance frameworks as mature, while approximately 65% said they struggle to efficiently access high-quality data needed to support AI systems.

The report also pointed to growing concerns around global data flows. A majority of respondents said increasing data localization requirements add cost, complexity and risk to cross-border operations, with many calling for more consistent international data transfer standards.

“To capture the potential of AI, organizations (83%) are advocating for a shift toward harmonized international standards,” stated Harvey Jang, Cisco Vice President and Chief Privacy Officer. “They recognize that global consistency is an economic necessity to ensure data can flow securely while maintaining the high standards of protection required for trust.”