Will Privacy & Security Concerns Stall the Adoption of - - PowerPoint PPT Presentation

• Dr. Larry Ponemon

November 27, 2017

Will Privacy & Security Concerns Stall the Adoption of Autonomous Automobiles?

November 27, 2017 Ponemon Institute Presentation Private and Confidential 1

We want to learn what adult-aged consumers think about the autonomous automobile. Specifically . . .

• Do consumers have concerns about their security and privacy?
• Do consumers feel enough trust to buy an autonomous vehicle?
• Do consumers feel enough trust to ride in an autonomous vehicle?
• Do consumers believe that OEMs will take appropriate steps to

secure the autonomous vehicle?

• Do consumers recognize the safety and convenience implications?
• Are consumers worried about hackers seizing control of the

autonomous automobile?

• Do consumers think autonomous automobiles will make their life

better or worse?

Purpose of the study

Consumer survey response Freq Pct% Total sampling frame 28,700 100.0% Total returns 1,081 3.8% Rejected surveys 68 0.2% Final sample 1,013 3.5%

Ponemon Institute Presentation Private and Confidential 2 November 27, 2017

Adult-aged consumers located in the United States were surveyed in November 2017.

Page 3

Privacy persona and the autonomous automobile

Ponemon Institute Presentation Private and Confidential

Privacy centric - Events that minimize your sense of privacy or diminish the safety of your sensitive personal information will have a significant impact on your behavior. Privacy sensitive - While you say that privacy is important to you, it does not affect your behaviors or information sharing practices. Privacy complacent - You really don’t care very much about the sharing or selling of your sensitive personal information.

November 27, 2017 Ponemon Institute Presentation Private and Confidential 4

Three Personas*

*These personas or privacy profiles were developed by Ponemon Institute more than a decade ago based on privacy trust research.

Privacy profile today and five years ago

November 27, 2017 Ponemon Institute Presentation Private and Confidential 5

19% 58% 23% 26% 52% 22% 0% 10% 20% 30% 40% 50% 60% 70% Privacy centric Privacy sensitive Privacy complacent Privacy profile today Privacy profile five years ago

If you became more concerned about the privacy and security of your personal data over the past five years, why?

More than one response allowed

November 27, 2017 Ponemon Institute Presentation Private and Confidential 6

15% 18% 21% 27% 33% 49% 50% 58% 65% 0% 10% 20% 30% 40% 50% 60% 70% I became a victim of identity theft I have growing concerns about government surveillance I know someone who became a victim of an identity theft I use mobile payment methods including mobile wallet I am using location tracking devices more often I am using my mobile devices such as smartphones and tablets more often More of my personal information including medical records is being shared I use social media more often I became a victim of a data breach

Privacy in an autonomous automobile

For instance, the ability to prevent the car manufacturer, government or

• ther companies from listening in or recording your private conversations

while riding in the car.

Security in an autonomous automobile

For instance, the ability to prevent hackers from remotely seizing control

• f your car.

Safety in an autonomous automobile

For instance, the ability to brake before a cash.

November 27, 2017 Ponemon Institute Presentation Private and Confidential 7

The survey addressed three areas of possible concern among consumers

Concern about security, safety and privacy in an autonomous automobile

1 = not concerned to 10 = very concerned Extrapolated average values reported

November 27, 2017 Ponemon Institute Presentation Private and Confidential 8

6.68 6.50 4.88 1.00 2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 10.00 Security in an autonomous automobile Safety in an autonomous automobile Privacy in an autonomous automobile

Concern about security, safety and privacy by persona

1 = not concerned to 10 = very concerned Extrapolated values reported

November 27, 2017 Ponemon Institute Presentation Private and Confidential 9

6.23 8.05 7.56 4.94 6.52 6.33 3.51 5.53 5.65

• 1.00

2.00 3.00 4.00 5.00 6.00 7.00 8.00 9.00 Privacy Security Safety Centric Sensitive Complacent

Level of trust in the idea of turning control of driving to an autonomous automobile

1 = low trust to 10 = high trust Extrapolated average value = 5.22

November 27, 2017 Ponemon Institute Presentation Private and Confidential 10

19% 14% 38% 20% 9% 0% 5% 10% 15% 20% 25% 30% 35% 40% 1 or 2 (low trust) 3 or 4 5 or 6 7 or 8 9 or 10 (high trust)

Do you believe the benefits of an autonomous automobile will outweigh your concerns about privacy or security?

November 27, 2017 Ponemon Institute Presentation Private and Confidential 11

40% 39% 21% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Yes No Unsure

I believe manufacturers of autonomous automobiles should provide the following:

November 27, 2017 Ponemon Institute Presentation Private and Confidential 12

8% 12% 19% 26% 32% 46% 56% 65% 77% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% Don’t know None of the above Provide assurance that my privacy and security is safeguarded Tell me when my personal information is shared with businesses and government Tell me what information is collected about me and how it is used Compensate me if my information is misused or stolen Allow me to control what information is collected within the automobile Let me know how I can protect my privacy and security within the automobile Tell me what security precautions are taken to prevent the automobile from being hacked

Page 13

Safety & security in today’s cars

Ponemon Institute Presentation Private and Confidential

How much time do you spend driving each day?

November 27, 2017 Ponemon Institute Presentation Private and Confidential 14

34% 21% 22% 23% 0% 5% 10% 15% 20% 25% 30% 35% 40% Less than 1 hour 1 hour to 2 hours 3 hours to 4 hours More than 4 hours

How safe do you feel when you are driving in your car?

November 27, 2017 Ponemon Institute Presentation Private and Confidential 15

30% 53% 17% 0% 10% 20% 30% 40% 50% 60% Very safe Safe Not safe

Have innovations in safety features, such as air bags, roll cages and rear cameras, made you feel safer in your car?

November 27, 2017 Ponemon Institute Presentation Private and Confidential 16

67% 33% 0% 10% 20% 30% 40% 50% 60% 70% 80% Yes No

Do you feel less safe in your car when driving in certain locations and times?

November 27, 2017 Ponemon Institute Presentation Private and Confidential 17

55% 45% 0% 10% 20% 30% 40% 50% 60% Yes No

If yes, where and when do you feel less safe?

More than one response allowed

November 27, 2017 Ponemon Institute Presentation Private and Confidential 18

65% 56% 47% 32% 10% 0% 10% 20% 30% 40% 50% 60% 70% During rush hour In high crime areas Late at night On crowded city streets On state highways

Does the type of vehicle you drive make you feel safer on the road?

November 27, 2017 Ponemon Institute Presentation Private and Confidential 19

59% 41% 0% 10% 20% 30% 40% 50% 60% 70% Yes No

If yes, in which vehicles do you feel safest?

November 27, 2017 Ponemon Institute Presentation Private and Confidential 20

32% 26% 23% 17% 2% 0% 5% 10% 15% 20% 25% 30% 35% SUVs Light trucks Vans Sedans Other

Page 21

Perceptions about the autonomous automobile

Ponemon Institute Presentation Private and Confidential

Do you plan to purchase an autonomous automobile?

November 27, 2017 Ponemon Institute Presentation Private and Confidential 22

25% 11% 21% 26% 17% 0% 5% 10% 15% 20% 25% 30% Never Unsure Maybe, if it is affordable Maybe, after I see them on the road and they look safe Yes, as soon as it is available

If yes or maybe, what is the most important reason for purchasing an autonomous automobile?

November 27, 2017 Ponemon Institute Presentation Private and Confidential 23

2% 6% 10% 12% 19% 24% 27% 0% 5% 10% 15% 20% 25% 30%

Other Automatically finds the shortest and fastest route to my destination Will have a positive impact on the environment Ensures I have transportation when I can no longer drive Reduces traffic accidents Relieves the stress of having to drive Enables me to multi-task when commuting to work

If never, what is the most important reason for not purchasing an autonomous automobile?

November 27, 2017 Ponemon Institute Presentation Private and Confidential 24

8% 13% 15% 30% 34% 0% 5% 10% 15% 20% 25% 30% 35% 40% I am concerned about my personal data that the automobile will collect and use I do not want to give up control to technology I do not think they are safe I am concerned about the risk of hacking I enjoy driving

If you do not want to purchase an autonomous automobile, would you ride in one?

November 27, 2017 Ponemon Institute Presentation Private and Confidential 25

60% 24% 16% 0% 10% 20% 30% 40% 50% 60% 70% Yes No Unsure

Perceptions about autonomous automobiles

Strongly agree and Agree responses combined

November 27, 2017 Ponemon Institute Presentation Private and Confidential 26

42% 45% 49% 53% 56% 57% 0% 10% 20% 30% 40% 50% 60% Autonomous automobiles will make my life easier and make traveling more fun Autonomous automobiles will make driving safer Autonomous automobiles will make commuting to work and running errands less stressful I would rather manually drive my car than use an autonomous automobile I believe automobile manufacturers will only make autonomous vehicles that are safe and secure I would prefer to have a partial autonomous automobile so I can drive when I want to

What impact will autonomous automobiles have on traffic accidents?

November 27, 2017 Ponemon Institute Presentation Private and Confidential 27

17% 23% 37% 15% 8% 0% 5% 10% 15% 20% 25% 30% 35% 40% Significantly decrease traffic accidents Decrease traffic accidents No change in traffic accidents Increase traffic accidents Significantly increase traffic accidents

In your lifetime, which of the following advances in technologies have changed

• r will change your life the most?

Three responses allowed

November 27, 2017 Ponemon Institute Presentation Private and Confidential 28

7% 11% 13% 15% 23% 31% 40% 47% 49% 64% 0% 10% 20% 30% 40% 50% 60% 70% Drones Space travel Internet of Things Microwave ovens Online shopping Laptop computers Autonomous automobiles Social media (Facebook, Twitter, Linked-in) Mobile phones Internet

How will autonomous automobiles change your life?

November 27, 2017 Ponemon Institute Presentation Private and Confidential 29

41% 19% 40% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% For the better For the worse No change

Page 30

Demographics

Ponemon Institute Presentation Private and Confidential

Gender and Age Range

November 27, 2017 Ponemon Institute Presentation Private and Confidential 31

Female, 53% Male, 47% 16% 23% 23% 17% 13% 8% 18 to 25 26 to 35 36 to 45 46 to 55 56 to 65 65+

Adult-aged consumers located in the United States were surveyed in November 2017.

Highest Level of Education

November 27, 2017 Ponemon Institute Presentation Private and Confidential 32

18% 15% 27% 30% 8% 2% High School Vocational College (attended, no degree) College (4 year degree) Graduate School Post Graduate / Doctorate

Adult-aged consumers located in the United States were surveyed in November 2017.

Household income

November 27, 2017 Ponemon Institute Presentation Private and Confidential 33

7% 23% 31% 12% 9% 6% 6% 4% 2% Less than $25,000 $25,000 to $40,000 $40,001 to $60,000 $60,001 to $80,000 $80,001 to $100,000 $100,001 to $150,000 $150,001 to $250,000 $250,001 to $500,000 More than $500,000

Adult-aged consumers located in the United States were surveyed in November 2017.

United States regional location

November 27, 2017 Ponemon Institute Presentation Private and Confidential 34

20% 20% 19% 16% 13% 12% Northeast Pacific-West Mid-Atlantic Midwest Southeast Southwest

Adult-aged consumers located in the United States were surveyed in November 2017.

There are inherent limitations to survey research that need to be carefully considered before drawing inferences from findings. The following items are specific limitations that are germane to most web-based surveys.

• Non-response bias: The current findings are based on a sample of survey returns. We sent

surveys to a representative sample of individuals, resulting in a large number of usable returned responses. Despite non-response tests, it is always possible that individuals who did not participate are substantially different in terms of underlying beliefs from those who completed the instrument.

• Sampling-frame bias: The accuracy is based on contact information and the degree to

which the list is representative of adult-aged individuals who drive automobiles. We also acknowledge that the results may be biased by external events such as media coverage. Finally, because we used a Web-based collection method, it is possible that non-web responses by mailed survey or telephone call would result in a different pattern of findings.

• Self-reported results: The quality of survey research is based on the integrity of confidential

responses received from subjects. While certain checks and balances can be incorporated into the survey process, there is always the possibility that a subject did not provide a truthful response.

November 27, 2017 Ponemon Institute Presentation Private and Confidential 35

Caveats

Page 36

Questions?

Ponemon Institute Toll Free: 800.887.3118 Michigan HQ: 2308 US 31 N. Traverse City, MI 49686 USA research@ponemon.org

Ponemon Institute Presentation Private and Confidential