"Privacy and security [are] essentially the ultimate shared responsibility between companies, government and the people who are actually using the tools," Cohen said. "More connectivity doesn't remove the importance of human judgment."
(Watch: Hacking America in the CNBC Digital Workshop)
He predicted that parents are going to have to educate their children about online privacy and security perhaps years before having "the talk" about the birds and bees.
Rise of the Machines?
"It'll be a long time before the machines take over the world," Schmidt said. "The core problem in society is not that the machines are taking over the world, but rather, automated machines are taking over some low-skilled jobs."
"The answer to that, of course, is education," he added.
—By CNBC's Matthew J. Belvedere; Follow him on Twitter