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

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The Deloitte Center for Technology, Media & Telecommunications surveyed nearly 4,000 US consumers in June 2024, asking them about their tech-device and -services spending, online activities, perspectives on digital life, digital boundaries, data privacy and security concerns, use of generative AI, and trust in tech companies.

Deloitte

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Deloitte

Deloitte’s annual 5th Connected Consumer study continues to be a deep well of knowledge on US consumers’ digital lives.

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Source: Deloitte

The Deloitte Center for Technology, Media & Telecommunications surveyed nearly 4,000 US consumers in June 2024, asking them about their tech-device and -services spending, online activities, perspectives on digital life, digital boundaries, data privacy and security concerns, use of generative AI, and trust in tech companies (see “Methodology”).

Key takeaway from 2023  report was that consumers were struggling to find the right balance between their digital and physical lives. Respondents were streamlining their household devices and cutting back on device purchases in the face of economic uncertainty.

In 2024 Deloitte is seeing greater awareness of the potential harms of digital life. Since 2023, consumers have grown more worried about data-security risks and location- and behavior-tracking. More are experiencing security failures, and more are taking protective actions. They’re also setting more boundaries on their digital use—and that of their children. Consumers are increasingly looking to tech companies to help them find the right balance, give them more control over their devices and data, and ensure that digital life is worth the effort. According to our analysis, tech companies that prioritize transparent data privacy and security policies along with ease of control may be able to earn greater consumer trust and affinity.

Digital spending plans show signs of optimism

Digital activities occupy a significant part of daily life, with US consumers spending an average of eight hours online daily. Younger generations lead the charge, with Gen Zs and millennials averaging nine hours. Streaming entertainment, social media, and online shopping remain top activities.

Tech spending is rebounding. Households spent an average of $760 on connected devices in the past year, a slight drop from $800 in 2023. However, 28% plan to increase device spending in 2024—up from 9% last year—while 43% plan to maintain their spending. Device-refresh cycles are accelerating, fueled by AI-enabled features embedded in new devices.

Monthly spending on digital services averages $175, with 14% of consumers planning to increase subscriptions and software spending in the coming year. This signals growing optimism despite lingering financial pressures in some households.

Key findings:

  • On average, they spend eight hours engaging in online activities daily—about half of their waking hours.
  • Gen Zs and millennials report spending even more time online—9 hours each day, on average—while Gen X, boomers, and matures spend 7, 6, and 4 hours online, respectively.
  • About 7 in 10 respondents say they go online every day for general web browsing, communicating with friends and family, and using social media.
  • 74% of Gen Zs and 68% of millennials say they check their social media feeds at least several times a day—as do 57% of Gen Xers and 39% of boomers.
  • 20% of Gen Zs say they check their feeds at least hourly, and other research has revealed that Americans check their smartphones 144 times a day, on average.
  • 61% percent of consumers surveyed say they watch entertainment (movies, TV, sports) on a streaming service daily, and 48% say they listen to music or podcasts daily.
  • US households, on average, spent approximately US$760 on acquiring connected devices in the past year—a slight drop from US$800 in 2023. An additional 4.4% increase in spending is expected in 2025.
  • 28% of respondents plan to increase their device spending in 2025, up significantly from 9% in 2023, while 43% expect spending to stay the same, compared with 63% in 2023. 
  • More people are looking to cut back on device purchases (23% compared with 7% last year), indicating ongoing financial pressures in some US households.
 

Consumers enjoy their digital lives but are realistic about potential drawbacks

83% percent of consumers believe digital experiences positively impact their lives, up from 78% in 2023. This sentiment is strongest among teens, with 86% reporting benefits. Across generations, consumers cite online shopping, maintaining social connections, and accessing entertainment as key advantages. However, the divide between digital and physical interaction persists: 59% of Gen Zs and 56% of millennials spend more time interacting online than in person.

Yet, concerns about digital drawbacks are rising. Forty-four percent struggle to limit screen time, and over 40% worry about the impact of digital activities on their physical and psychological health. Cybersecurity incidents are increasing, with 48% experiencing breaches in the past year—up from 34% in 2023—highlighting the need for robust protections.

Key Findings:

  • 44% of respondents overall and 56% of Gen Zs and millennials say they struggle to limit their screen time to levels they’re comfortable with—up six and four points, respectively, from last year.
  • 42% of respondents are concerned that their digital activities could negatively impact their physical condition, and 35% share the same concern about their psychological condition. Gen Zs and millennials worry more, with roughly half fearing potential negative effects on both their physical and psychological well-being.
  • 37% of respondents expressed worry that their digital activities could expose them to harmful content or people (up eight points since 2023)—and 43% of Gen Zs and millennials share this concern.
  • 31% percent of respondents worry that their online time could harm their social connections and engagement in the physical world (up four points since 2023)—and 41% of Gen Zs and millennials fear the same.
  • 83% have put at least one measure in place (up five points from last year), and each action we asked about shows an uptick. 50% say they put devices away during activities with family and friends, and the same number say they take regular breaks from screens.
  • 36% said they turn off notifications at select times, 35% said they take breaks from apps and accounts, and 30% keep their smartphone out of their bedrooms or set it to “do not disturb.” While they value the benefits of online engagement, consumers are taking more responsibility for their behavior and working to balance digital and offline lives.

Digital divide between parents and kids may be narrowing

Teens spend more time online than other age groups but also report the highest positivity toward digital activities. Parents and teens generally agree on the benefits of social media, such as learning new topics and maintaining friendships. However, 60% of teens admit to checking their feeds constantly, and half of parents struggle to manage their children’s screen time. Concerns about location tracking and data breaches have surged, with 67% of parents and 62% of teens worried about tracking risks.

Cyberbullying remains a pressing issue, with 26% of teens reporting incidents. Parents are taking action, with 83% enforcing digital boundaries such as limiting screen time and monitoring online activities. However, tech companies have more to do to ensure safer online environments for younger users.

Key findings: 

  • Nearly 90% say that digital activities have a positive impact on their lives and that their online experiences help them build meaningful connections.
  • Most parents also have favorable impressions of their children’s online activities: 60%said they have a positive impact and 67% said they help children build meaningful connections.
  • Significant majorities of each group agree that social media helps kids learn about topics of interest, maintain friendships, and connect with like-minded communities.
  • 60% of teens said they seem to check their feeds “constantly,” and 57% of parents said the same about their kids.
  • 51% of parents said they struggle to limit their children’s screen time to comfortable levels, and the same number of teens admitted to grappling with the issue—a seven-point jump from last year.
  • 2/3 of parents and teens alike worry about location tracking; for teens, this concern surged by 15 points in the past year. An increasing number of teens are worried about negative impacts on their physical condition and real-world social engagement, and more than half of teens and parents worry about security failures causing some leak of household data.
  • 43% of parents who took our survey admitted that they struggle to keep up with the social networks and apps that their children use.
  • 6 in 10 parents are concerned about their children being exposed to harmful ideas, images, videos, and people online.
  • 44% of teens surveyed say they worry about being exposed to harmful or inappropriate content or people online. 
  • 6 in 10 parents say they’re worried about their kids being misled by social media influencers, only about a quarter of teens share that concern.
  • while a majority of parents are concerned about the effects of digital activities on their kids’ psychological condition, only one-third of teens expressed the same worry—with both groups showing slight dips in concern from last year’s study.
  • 26% percent of teens report that they’ve experienced cyberbullying or online harassment, versus 18% of respondents over 18 years of age. Compared with those who have not experienced cyberbullying, respondents who have are more likely to worry that digital activities may harm their physical condition (56% versus 38%) and psychological condition (55% versus 30%).
  • Nearly all parents have set digital boundaries for their children, with many measures increasing since last year. Common strategies include setting screen time limits, restricting purchases, monitoring online activities, and using parental control apps for smartphones. Forty-one percent of parents surveyed said they enforce age restrictions on certain digital activities, as endorsed by health professionals,8 such as limiting social media use, smartphone access, and unsupervised internet use for younger children.

 

 
 

Generative AI gains fans and exceeds consumer expectations

Gen AI adoption has doubled since 2023, with 38% of respondents using it for personal or professional tasks. Younger generations are leading the charge, with half of Gen Zs and millennials experimenting with or using gen AI. Common applications include document editing, web searches, and research assistance. Eighty-three percent of users say gen AI boosts productivity, with 53% reporting substantial gains.

Despite high satisfaction, concerns persist. Consumers worry about data privacy, algorithmic biases, and misuse of the technology. Seventy percent of gen AI users find it harder to trust online information, emphasizing the need for clear labeling of AI-generated content. Tech companies can earn trust by ensuring transparency in data handling and addressing misuse concerns.

Key findings: 

  •  Adoption of gen AI has more than doubled in the last year—with 38% of respondents now saying they’ve experimented with gen AI or used it for projects or tasks beyond experimentation. Adoption is more pronounced among younger generations, with half of Gen Zs and millennials surveyed using or experimenting with gen AI, compared with 38% of Gen Xers and 22% of boomers. Further, 42% of Gen Zs and millennials who use gen AI for projects say they do so every day.
  • 85% utilize gen AI for personal purposes (up 13 points from 2023), 34% for job-related tasks (up 18 points), and 24% for educational projects (up three points).
  • The top four gen AI use cases for work and school are: document editing, web searches, summarizing materials, and research assistance. For personal use, document editing and web searches remain popular, while chatbot conversations and image generation round out the top four uses.
  • 24% of employed respondents saying they experiment with or use gen AI for work purposes, compared with just 6% of employed respondents in 2023. This jump could suggest that many employers are embracing the potential of gen AI in the workplace.
  • 75% of those who use gen AI for work report that their company encourages its use, and 68% say their company invests in gen AI training for employees.
  • A decisive majority (83%) of those who use gen AI on the job believe it boosts their productivity—with 53% reporting a “substantial” boost.
  • 2/3 of gen AI users said it exceeds their expectations, and one-third said it’s “significantly better” than expected. Gen Z and millennial users seem especially enthusiastic, with 70% saying gen AI exceeds their expectations and 39% calling it “significantly better” than expected. Overall, only 8% said gen AI is worse than they expected. The high satisfaction rate earned by gen AI underscores its potential to enhance productivity and innovation.
  • Consumers’ feelings toward gen AI appear to transform as they gain more experience with the technology (figure 8). Very few respondents feel “trust” toward gen AI before they use it, but for regular users, trust is the No. 3 emotion.
 
  • When it comes to engaging with gen AI-based chatbots for personal issues, Gen Zs and millennials are about twice as likely as older generations to say they’re interested in talking to a chatbot “friend” (44%, vs. 23%), relationship coach (42%, vs. 21%), or mental health counselor (44%, vs. 24%). 
  • For gen AI users across generations, their willingness to talk with gen AI chatbots about personal medical topics (62%) is nearly as high as their interest in talking with chatbots about less-sensitive travel plans (66%), and a majority expressed interest in talking with gen AI chatbots for mental health support, friendship, and relationship advice.
  • Nearly 2/3 of users are interested in using gen AI for personalized fitness and nutrition plans, shopping help, and financial guidance. The landscape seems to be shifting toward AI-enhanced solutions that are customized to meet individual preferences and needs.

Amid growing data privacy and security concerns, tech companies can work to earn trust through transparency

Key findings:

  • ‘Hacking and tracking’ worries are growing. Last year’s report highlighted consumers’ growing concerns that digital activities put them at risk of security incidents and tracking by organizations or individuals. In 2024 the worries seem to be intensifying. Tracking fears are increasing among both parents and teens. 67% of parents said they worry that their children may be tracked through their devices (up from 61% in 2023), and 62% of teens between ages 14 and 17 are concerned that they could be tracked (a jump from 47% in 2023).
 

Considerations for Tech Companies

To build trust and loyalty, tech companies should:

  • Enhance data security measures and communicate transparently about data usage.

  • Make it easier for consumers to control their data, with clear settings for customization.

  • Invest in anti-bullying technologies and content moderation to protect younger users.

  • Address consumer concerns about gen AI misuse and provide clear labeling for AI-generated content.

By prioritizing transparency, safety, and user control, tech companies can foster trust, encourage tech adoption, and drive long-term growth in the digital age.

 

 

There are notable generational differences around trust: Thirty-four percent of Gen Zs and millennials say they have high or very high trust that device makers will protect their data, compared with just 20% of older consumers. On average, 27% of Gen Zs and millennials report high or very high trust in application providers and online service providers. But just 12% of older consumers say the same. Convincing older consumers to purchase and make greater use of digital technologies (such as GPS tracker watches, fall detection, smart lights, home monitoring systems) could depend partly on earning greater trust. Gender differences are also significant: Thirty-one percent of men trust device makers, versus 22% of women. Twenty-four percent and 22% of men trust application providers and online service providers, respectively—compared with just 15% and 13% of women. With women controlling or influencing an estimated 85% of consumer spending, tech companies should work to builder greater trust among this powerful cohort.17

Methodology

To understand consumer attitudes toward digital life, the Deloitte Center for Technology, Media & Telecommunications conducted a survey of 3,857 US consumers in the second quarter of 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 to 2009), millennials (1983 to 1996), Generation X (1966 to 1982), boomers (1947 to 1965), and matures (1946 and prior). “Teens” refer to respondents between the ages of 14 and 17 years.

Source: Deloitte

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