Cisco’s 2026 Data and Privacy Benchmark Study surveyed 5,200 IT, technology and security leaders across 12 global markets and found that 90% of organizations have already expanded their privacy programs in response to AI adoption, while 93% plan to increase investment further. Notably, 38% of respondents reported spending at least $5 million on privacy initiatives in the past year—up from 14% in 2024—underscoring the rapid escalation of budgets to address AI’s data demands and regulatory expectations.

Although three-quarters of organizations now have a dedicated AI governance body, only 12% describe these structures as mature. As AI systems draw on increasingly complex and distributed datasets, 65% of respondents struggle to efficiently access high-quality data, highlighting urgent needs for improved data hygiene, transparency and oversight. Cisco’s findings reveal that 96% view robust privacy frameworks as key enablers of AI agility and innovation, and 95% believe they are essential for securing customer trust in AI-powered services.

The study shows that 81% of organizations face rising demand for data localization, yet 85% say such requirements add cost, complexity and risk to cross-border service delivery, and 77% report they hamper seamless global operations. In response, 83% of companies are calling for more harmonized international data transfer rules, and 82% prefer global-scale technology providers to manage cross-border flows. Cisco’s Vice President and Chief Privacy Officer noted that these trends reflect an economic imperative for consistent standards to secure data mobility and maintain protection levels worldwide.