AI Drives Surge in Corporate Data Privacy Spending, Calls for Global Data Transfer Harmony
January 26, 2026
There is growing support for harmonised international data transfer rules, with 83% of respondents backing greater jurisdictional alignment, even as confidence in locally stored data security declines.
Key voices emphasize holistic data governance and the explainability of automated decisions, alongside calls for global consistency in cross-border data flows while maintaining protections.
AI adoption is accelerating corporate data privacy and governance spending, with Cisco’s 2026 Data and Privacy Benchmark showing 90% of surveyed organisations expanding privacy programmes and 93% planning additional investment.
Governance structures for responsible AI at scale are still maturing: about two-thirds of Indian organizations have a dedicated AI governance body, but only around 12% consider these structures mature, and 70% report challenges accessing high-quality data efficiently.
Experts urge holistic governance of all data, insist on explainable automated decisions, and advocate embedding privacy and security across AI initiatives as foundations for trust and scalable innovation.
Leaders stress harmonised international standards for secure, seamless data flows across borders to support scalable AI.
Cisco’s privacy chief notes that 83% of organizations want harmonised international standards to enable secure data flow while preserving protections.
Data localization is increasingly demanded (about 81%), but it raises costs and complexity and 77% say it hampers seamless cross-border service delivery; 83% advocate harmonised international data transfer rules.
Globally, 87% of respondents believe large-scale providers are better at managing cross-border data flows, underscoring the push for harmonised standards.
The report highlights concerns about cross-border data flows and supports harmonised data transfer rules, noting that localization demands in India add cost and complexity but aim to balance secure, efficient global operations.
India features among the studied markets, reflecting expanding AI deployment alongside evolving data protection and governance requirements.
Historically, AI-related news from platform launches and partner programs has evolved into quantified benchmarks on data privacy and governance that influence investor outlook and product strategy.
Summary based on 11 sources
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Sources

Cision PR Newswire • Jan 26, 2026
AI Fuels Surge in Data Privacy Investments and Redefines Governance, Cisco Reports
The Hans India • Jan 26, 2026
97 pc firms in India upgrade privacy frameworks to support responsible AI use: Report
The Newsroom • Jan 26, 2026
AI Fuels Surge in Data Privacy Investments and Redefines Governance, Cisco reports
Express Computer • Jan 26, 2026
AI is fueling surge in data privacy investments: Cisco report