How are you building trust with your consumers when processing their data?

5 Minutes

Individuals at all levels of an organisation, play an important role in protecting personal data. Cisco’s annual Privacy Benchmark Study 2023 highlights the importance for firms to re-evaluate their privacy practices to ensure investment is being made in all relevant areas.

Jackie Barlow, Senior Consultant Data Protection at Xcina Consulting reviews the key recommendations, including updates to the Data Protection and Digital Information Bill that were introduced last week, following several constructive discussions. It has been on quite a journey and there are specific aims that the new Bill sets out to achieve, but how far does it go in increasing public and business confidence and is this a welcome development for business leaders?

In other events, the ICO are adapting their stance to how enforcement action is applied following breaches and in addition, as part of a wider project reviewing the ICO’s employment code of practice, new guidance that will be provided to employers is expected to help them manage sensitive health information appropriately and proportionally.

Data Privacy: Addressing the disconnect with customers

What happened

Cisco has released its annual Privacy Benchmark Study. The 2023 report considers the importance of data privacy on organisations.

Research has shown that despite economic conditions being less certain, businesses did not reduce their spending on privacy in 2022.

Companies have found that investment in data privacy has led to greater customer trust, increased business attractiveness, increased innovation, operational efficiency and a reduction in data breaches. The study highlights that the way that an organisation handles individuals’ data strongly indicates how it respects its customers.

A real concern for customers is the use of Artificial Intelligence (AI), and many have lost trust in organisations where data has been used for this purpose.

Cisco’s study showed that 92% of respondents said organisations need to be doing more to reassure customers that their data is only being used for intended and legitimate purposes.

Their priorities in terms of handling personal data are not always in line with those of their clients, particularly where AI technology is in use and where automated decisions are being made that affect individuals.

Some suggested measures for firms to reassure consumers when AI is used include
(i) ensuring a human is involved in the process
(ii) explaining how the AI application works
(iii) adopting AI ethics principles
(iv) carrying out audits to check bias and
(v) giving customers the opportunity to opt out of AI.

Why it matters

The Cisco Study has found that 95% of companies consider data privacy to be crucial to their business.

It has shown that clients will share personal data with organisations but expect them to be transparent about their practices and treat the personal data appropriately. In the 2022 study 76% said they would not make a purchase from an organisation they don’t trust with their data.

As AI technology develops, customers are becoming more anxious around how their data could be exploited and until there is sufficient trust, they want the option and flexibility to withdraw their details from such systems.

Organisations know the importance of being transparent, but they are also aware of how difficult it will be to explain exactly how the complex mathematics of algorithmic decision-making works to the individuals that are affected by it.

The study has shown that investment in privacy compliance is crucial and organisations should focus on improving transparency and increasing trust, for data protection but also for AI. The task is not going to be simple.

The UK’s 10 year ‘AI Action Plan’ is still in its early stages. The Alan Turing Institute (the UK’s national institute for data science and artificial intelligence) is working together with the ICO on the action plan and a framework will be developed for explaining processes, services and decisions delivered by AI to improve transparency and accountability. Details can be found at National AI Strategy – AI Action Plan – GOV.UK (www.gov.uk)