Encryption plays a crucial role in cloud services by ensuring the confidentiality and integrity of data stored and transmitted in the cloud. When data is encrypted, unauthorized users cannot easily access or interpret it, significantly reducing the risk of data breaches. Enterprises often utilize encryption to comply with data protection regulations and build customer trust by safeguarding sensitive information. Techniques like encryption-at-rest and encryption-in-transit are common practices that protect data during its entire lifecycle in cloud environments, enhancing overall security postures for organizations.