New Delhi, Jan 26 : As artificial intelligence rapidly becomes part of everyday business, 97 per cent of companies have already expanded their privacy programmes, a new report said on Monday.

Data compiled by Cisco showed that nearly 96 per cent organisations plan to invest even more -- underlining how critical data protection has become in the AI era.

The study, which surveyed over 5,200 IT, technology, and security professionals across 12 countries, highlights that AI is the main force behind this transformation.

In India, nearly all organisations reported expanding their privacy programmes to keep up with the growing complexity of AI systems.

Globally too, spending on privacy initiatives has increased sharply, with many companies now investing millions of dollars annually to strengthen data protection frameworks.

The report showed that businesses clearly see the link between strong privacy practices and successful AI use.

A large majority believe that robust privacy frameworks help them innovate faster and build trust in AI-powered services.

In India, every organization surveyed said they experienced at least one business benefit from their privacy efforts, such as improved agility, better innovation, or stronger customer loyalty.

Many also pointed out that being transparent about how data is collected and used plays a major role in gaining customer confidence.

However, while privacy investments are rising, data governance is still evolving. Many companies are struggling with managing and accessing high-quality data needed to run AI systems effectively.

Around 70 per cent of organisations in India said they face challenges in efficiently using relevant and reliable data.

Although several companies have set up AI governance bodies, only a small number feel these structures are fully mature.

Cisco leaders emphasised that AI requires a more holistic approach to managing all types of data, not just personal information.

They noted that organizations must clearly understand and structure their data so that AI-driven decisions can be explained and trusted, making governance a critical part of scaling AI responsibly.

The report also highlights growing concerns around cross-border data flows. While there is increasing demand for data localisation in India, many organisations feel these requirements add cost and complexity and make it harder to deliver seamless services across countries.

A large number of companies support the idea of harmonised international data transfer rules to ensure secure and efficient global operations, as per the report.

/IANS