New Deloitte Survey: Increasing Consumer Privacy and Security Concerns in the Generative AI Era

Key takeaways

• Digital Boundaries: While most consumers surveyed (78%)
  believe their digital experiences have a positive impact on their lives, they are increasingly grappling with the downsides of technology and setting more boundaries on their digital use—and that of their children.
• GenAI on the rise: GenAI usage has more than doubled over the past year. Almost 4 in 10 consumers (38%) are now experimenting with or using GenAI for personal, work-related, and educational tasks, and 83% of those using GenAI for work say it boosts their productivity.
• Privacy and security concerns increase: Security incidents have increased year-over-year among respondents, with 48% saying they experienced at least one kind of security failure in the past year (up from 34% in 2023). Meanwhile, 85% have actively taken steps to protect themselves from such incidents.
• Trust pays off: Trust is critical in a data-driven world. Consumers who trust their technology providers to protect their data spent 50% more on connected devices in the past year than those with low trust in their providers.

Why this matters

Deloitte's fifth annual 2024 “Connected Consumer” survey underscores a shift in consumer attitudes towards technology. With digital devices firmly integrated into their daily lives, consumers are seeking a balance between the benefits and drawbacks of technology. Concerns about data privacy and security continue to grow. To foster trust and encourage affinity, technology companies have an opportunity to prioritize clear privacy policies, easy-to-manage data controls, and responsible security practices. By addressing consumer concerns, they can help lead the way for a more secure and responsible digital future.

Consumers embrace technology while seeking balance
On average, survey respondents report spending eight hours online daily. US households spent approximately $760 on acquiring connected consumer devices in the past year, as well as approximately $175 monthly on technology subscriptions, services, and software. While 78% of consumers believe technology positively impacts their lives, there is also a rising awareness of the potential negative consequences of excessive screen time.

• Balancing screen time: Many consumers (44%) struggle to limit their screen time to a level they are comfortable with (up from 38% last year). Also, 56% of Gen Zs and Millennials say they struggle to limit screen time (up from 52% last year).
• Keeping device usage in check: More consumers surveyed are taking measures to keep their device usage in check (83% have taken at least one step to set digital boundaries, up from 78% last year). About half report putting their devices away when they’re with family or friends and taking regular breaks away from screens.
• Setting digital boundaries for children: While 67% of parents believe their children’s digital activities help them build meaningful connections, over half (51%) struggle to limit their children’s screen time. Almost all parents surveyed (94%) report setting digital boundaries for their children.
• Narrowing the generational digital divide: While teens have the most upbeat impressions of digital life (86% of teens reported that their digital experiences have a positive impact on their lives), they also show signs of concern about its negative effects. Most teens (62%) are worried about being tracked through their devices, and 44% worry they may be exposed to harmful or inappropriate content or people online.

Surge in GenAI adoption

Consumers are embracing GenAI; over 38% are using it for projects and tasks or experimenting with the technology. Younger generations, particularly Gen Zs and Millennials, are at the forefront of adoption, with half saying they use or experiment with GenAI. Further, 42% of Gen Zs and Millennials who use GenAI for projects say they use GenAI at least once a day.

• Familiarity with GenAI drives excitement: GenAI exceeds the expectations of 63% of users surveyed, and 76% of those who have used GenAI for projects and tasks feel it amplifies human creativity.
  
• On-device GenAI may catalyze spending: Of those surveyed, 37% said they’re more likely to upgrade their smartphone sooner to access new embedded AI technologies.
• Use of GenAI chatbots is on the rise: As consumers become more familiar with GenAI, they also become more comfortable with conversational AI. Younger consumers are about twice as likely as older generations to express interest in engaging with GenAI chatbots on personal issues, including turning to a chatbot “friend” (44%), conversing with a mental health chatbot (44%), or relationship coach (42%).
• GenAI also raises trust issues: Over half (51%) of consumers report they’re more skeptical of the information they see online compared to a year ago. GenAI may be a factor: 70% of those familiar with or using GenAI say the emergence of GenAI content makes it harder to trust what they see online, and over two-thirds (68%) are concerned they could be fooled or scammed by GenAI content.

Privacy and security concerns persist

Consumers are more worried than ever that their digital activities could open them up to security incidents and unauthorized access to their personal information. This concern seems warranted—48% of those surveyed experienced at least one security breach in the past year, a 14-point increase from 2023. Consumers are taking more steps to protect their data, but many feel it is an uphill battle.

• Gen Zs fall victim to scams at higher rates than Boomers: Almost one-third of Gen Z respondents reported having had a social media account hacked in the past year. Gen Zs surveyed were more than twice as likely as Boomers to have a social media account hacked, fall for an online scam, have their identity stolen, or have a device hacked over the past year.
• Security vigilance grows, but many feel powerless: An overwhelming majority (85%) of consumers are taking at least one step to address their privacy and security concerns. However, 75% feel they should be doing more, and many indicate they feel a sense of powerlessness: They believe that companies can track them no matter what they do (26%), don’t know what actions they can take (25%), and think hackers can access their data no matter what they do (21%).
• Consumers want more help on security: Nine in 10 people surveyed think they should be able to view and delete the data companies collect on them. 90% say technology companies should do more to protect their data, and 84% say the government should do more to regulate the way companies collect and use consumer data, as well.

Data security and transparency can be competitive advantages

Beyond malicious actors, consumers are increasingly concerned about tech companies' protection of personal data and its unauthorized use. As GenAI and digital technologies become more pervasive, companies that prioritize data security and transparency can differentiate themselves in the market. In an era where privacy breaches happen more frequently, consumers may reward businesses that commit to protecting their personal information. By investing in security measures and being transparent about their data practices, companies can build trust, enhance their reputation, and ultimately drive customer loyalty.

• Policies are unclear and data is hard to control: The majority (79%) of consumers surveyed believe technology providers are not very clear about their data privacy and security policies, and 79% also feel it’s not very easy to control the data their technology providers collect about them.
• Better transparency and control can promote higher trust: Around half (52%) of consumers who feel their technology providers have clear data privacy and security policies and provide easy control over user data report high levels of trust that providers will keep their data secure. Conversely, 52% of consumers who feel their technology providers have unclear privacy and security policies and make it difficult to control data report low trust.
• Breaches of trust come at a cost: If an incident affected their view of the provider’s trustworthiness, 64% of survey respondents said they would consider switching technology providers.
• Increased trust can lead to increased spending: Technology providers who earn consumers’ trust are rewarded with a larger share of their spending—consumers who trust their technology providers spent 50% more on connected devices last year.

About this survey

To understand consumer attitudes toward digital life, the Deloitte Center for Technology, Media & Telecommunications conducted a survey of 3,857 US consumers in Q2 2024. This is the fifth annual edition of the survey. All data was weighted to the most recent US Census to arrive at a representative view of US consumers’ opinions and behaviors. To gain a more detailed understanding of various consumer groups, we also segmented respondents into generational groups defined by their birth year: Generation Z (1997–2009), Millennials (1983–1996), Generation X (1966–1982), Boomers (1947–1965), and matures (1946 and prior). Teens represent respondents aged 14-17.

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