Meeting customer expectations: Why privacy matters more than AI models

Blog article
Reading time
min read
Key takeaways:
  • AI companies must prioritize privacy to build and maintain customer trust. 81% of consumers care about privacy and want more control over their data, with 46% switching companies due to privacy concerns​. 
  • Companies that are transparent about their data practices can gain a competitive edge. 62% of customers are more likely to trust companies that clearly communicate how they use and protect data.
  • Adhering to regulations like GDPR and CCPA is crucial. Non-compliance can lead to severe penalties and damage to reputation. A strong focus on privacy helps mitigate risks and ensures legal protection
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In this article
The Rising Importance of Privacy
Building Trust Through Privacy of AI Solutions
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In today's age of AI, privacy has become one of the top concerns for customers. With data breaches and misuse of personal information making headlines, people are more worried than ever about how their data is handled. According to a survey by Cisco, 81% of consumers care about privacy and want more control over their data . 

Despite this, many AI companies still focus primarily on showcasing the capabilities of their AI models, often neglecting the critical aspect of data privacy. While advanced AI models are important, they are not enough to gain customer trust if privacy concerns are not addressed.

Regulations like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) have been implemented to protect consumer data, emphasizing the need for companies to prioritize privacy. Non-compliance with these regulations can result in hefty fines and damage to a company's reputation. For instance, GDPR violations can lead to fines of up to 4% of a company's annual global turnover or €20 million, whichever is greater.

In this blog post, we will explore why privacy matters more to customers than the technical details of AI models and how AI companies can meet these expectations by prioritizing data privacy.

The Rising Importance of Privacy

Customer Concerns

In recent years, data privacy has become a primary concern for consumers. The increasing number of high-profile data breaches and scandals involving misuse of personal information have made people more aware of the potential risks. A survey by Cisco found that 81% of consumers care about privacy and want more control over their data. Furthermore, 46% of respondents had switched companies or providers over data privacy concerns. This highlights that privacy is not just a regulatory requirement but a key factor in customer retention and trust.

Regulatory Landscape

The regulatory environment has also evolved significantly to address these privacy concerns. Regulations such as the General Data Protection Regulation (GDPR) in Europe and the California Consumer Privacy Act (CCPA) in the United States set stringent standards for data protection. Non-compliance with these regulations can result in severe penalties. For example, under GDPR, companies can be fined up to €20 million or 4% of their annual global turnover, whichever is higher . The CCPA also imposes fines, with penalties reaching up to $7,500 per intentional violation .

These regulations require companies to be transparent about their data collection and usage practices, obtain explicit consent from users, and ensure robust data security measures. The implementation of these regulations reflects the growing demand for stronger data privacy protections and the need for companies to prioritize these measures.

Additionally, new AI regulations, such as the EU AI Act, focus on privacy, making it a high priority for AI companies.

Case Studies

Several high-profile cases have underscored the importance of data privacy. For instance, Facebook's Cambridge Analytica scandal, where the personal data of millions of users was harvested without consent, resulted in a $5 billion fine from the Federal Trade Commission (FTC) . This incident not only led to financial penalties but also severely damaged Facebook's reputation, illustrating the high stakes of data privacy breaches.

By understanding and addressing these concerns, AI companies can not only comply with regulations but also build stronger, trust-based relationships with their customers. Prioritizing privacy helps in meeting customer expectations and securing a competitive edge in the market.

Building Trust Through Privacy of AI Solutions

Transparency and Communication

Transparency is crucial when it comes to building trust with your customers. AI companies must be open about how they collect, use, and protect data. According to a study by IBM, 75% of consumers will not buy a product from a company if they don’t trust how the company handles their data​​. By clearly communicating your data privacy policies and practices, you can alleviate customer concerns and foster a sense of security.

Privacy as a Competitive Advantage

Prioritizing privacy not only helps in meeting regulatory requirements but also serves as a competitive advantage. In a market where consumers are becoming increasingly privacy-conscious, companies that emphasize strong data protection measures can differentiate themselves. 

Best Practices for AI Companies

To effectively build trust through privacy, AI companies should adopt the following best practices:

  • Clear privacy policies - ensure your privacy policies are easy to understand and accessible to your customers. Avoid using jargon and be upfront about how data is collected, used, and stored.
  • Regular audits - conduct regular audits of your data privacy practices to identify and address any vulnerabilities. This proactive approach shows customers that you are committed to protecting their information.
  • Customer education - educate your customers about their data rights and how your company safeguards their privacy. Providing resources and answering their questions can help build trust and transparency.
  • Data minimization - collect only the data that is necessary for your operations. This reduces the risk of data breaches and shows customers that you respect their privacy.

By implementing these practices, AI companies can not only comply with privacy regulations but also create a trustworthy environment for their customers. Prioritizing privacy helps build long-term relationships based on trust and reliability, which is essential for sustained business success.


In the realm of AI, where technology and innovation are paramount, privacy often takes a back seat. However, meeting customer expectations means prioritizing their privacy over the technical details of AI models. Customers are increasingly aware of how their data is used and demand transparency and robust data protection measures.

For AI companies, this translates to more than just compliance with regulations like GDPR and CCPA. It means building trust through clear communication, strong data privacy practices, and proactive risk management. According to Cisco, 81% of consumers care about privacy and want more control over their data, and 46% have switched companies due to data privacy concerns.

At TrustPath, we understand the critical importance of privacy in building customer trust. Our solutions are designed to help AI companies navigate the complex landscape of data privacy, ensuring that they not only meet regulatory requirements but also exceed customer expectations. By prioritizing privacy, AI companies can differentiate themselves in a crowded market, build lasting customer relationships, and achieve sustainable growth.

Want to learn more about how TrustPath can help you prioritize privacy in your AI solutions? Get in touch with us today.