AI data privacy a top concern for 36% of firms, report finds

Data privacy and security remain significant concerns for IT and telecom managers in the context of artificial intelligence (AI), according to new research published by Cavell.

The Cavell Q2 2024 AI in Comms Report surveyed more than 2,000 IT and telecom decision-makers across the UK, US, and Europe to offer insights into AI's role in communications and its effects on organisations.

Findings from the report indicate that issues of security and data privacy are compelling 36% of companies to intensify their focus on data security and compliance. This emphasis underscores AI's influence in shaping the overall technology strategies of 91% of the companies surveyed.

Concerns about the potential misuse of AI and the inadvertent violation of customer privacy regulations have triggered a rise in the implementation of AI policies. Currently, 79% of companies report having an AI usage policy, reflecting a 25% increase from the previous year.

Finbarr Begley, Senior Analyst at Cavell, remarked, "Like many industries, AI is starting to see increased adoption in the communications industry. The primary use cases now are automation of administration e.g. transcription. However, AI does not come without risks, and companies are rightly concerned about misuse, data privacy, and making sure they get the most from AI without endangering their current brand reputation."

The study highlights a variation in AI-related concerns across different markets. In the US, 34% cited AI misuse as their primary worry. Conversely, in the UK (33%) and Europe (27%), the privacy of company data emerged as the leading concern. This disparity is largely attributed to the rigorous data controls in place to protect customer information in these regions.

Despite regional differences in concerns, the expectation for AI to enhance efficiency and productivity remains consistent across all areas surveyed.

The report identifies AI's current use cases in communications as largely internal, with data analytics (34%) and internal communications functions (28%) such as note-taking, transcribing, and summarisation being the predominant applications.

Although only 18% of companies are currently employing AI for automated communications in customer service, the report suggests there is substantial untapped potential for AI to transform this sector, indicating a promising potential for growth.

The report also outlines opportunities for businesses to leverage AI more effectively by enhancing employee skills, reallocating IT budgets, and upgrading data collection and database technologies.