Legislative updates. At least eight new state laws come online in the United States in 2025; six went into effect on January 1. Additionally, the EU AI Act will become enforceable in 2025, and various countries will introduce updates and new provisions to existing AI regulations. Along with new regulations, several privacy laws that went into effect in 2023 and 2024 will be enforced for the first time in 2025, including India’s and Vietnam’s personal data protection legislation.

Regulatory concerns. Stricter enforcement of privacy regulations have long seemed inevitable. Since the emergence of AI, global data-protection authorities have been concerned about the potential for misuse of personal data, more sophisticated cybersecurity threats, and a lack of transparency around data collection and use. In addition, regulators have focused on algorithmic bias, lack of transparency in automated AI decision-making, and the inability of individuals to control their personal data within AI systems. To combat these and other concerns, authorities have developed more rigorous enforcement strategies, giving regulators weightier enforcement authority and the ability to impose higher maximum fines and penalties.

Privacy-related enforcement actions have consistently and significantly increased internationally. In the coming years, data-privacy authorities plan to introduce stronger enforcement mechanisms, including automated solutions and AI-powered processes to continuously monitor compliance. With no significant changes to European privacy rules anticipated, European regulators may focus on further safeguarding the personal data of EU citizens and providing them with more control over their personal data. In recent years, data protection authorities have formed partnerships and have regularly collaborated with foreign government agencies for a more global approach to enforcing data privacy rights. Additionally, individual countries are coming together to develop regional legislation, such as the African Union’s Convention on Cyber Security and Personal Data Protection.

As global data protection laws are revised and updated, they are becoming increasingly similar, and organizations operating in multiple global locations are finding benefits in adopting comprehensive privacy frameworks that align with various regulations. This harmonization of global privacy standards will also streamline privacy enforcement, making it easier for regulators to detect and penalize companies for regulatory violations. Thus, as the focus on data privacy continues to grow, companies may find it more and more difficult to avoid penalties for noncompliance. In 2023, noncompliance with the EU’s General Data Protection Regulation (GDPR) cost companies more than €2 billion—more than in 2019, 2020, and 2021 combined. In the coming years, penalties for noncompliance with global data protection laws are expected to be even more severe.

How Organizations Can Prepare to Comply

Current privacy compliance protocols focus on consent, notice, and data security. The center of attention is expected to shift in the coming year to transparency, accountability, and preemptive risk mitigation; regulators are moving from a reactive to a proactive, risk-based approach. Privacy experts predict that companies will be required to conduct more rigorous privacy impact assessments (PIAs); implement stricter controls to limit collection and use of data; and provide expanded consumer rights, including real-time access to personal data and opt-outs for AI-related data processing.

Companies are more compelled than ever before to incorporate data privacy protections into their processes, operations, governance structure, and policies. The International Association of Privacy Professionals (IAPP) reports that 64 percent of organizations have a formal privacy risk management program. Organizations that have already established privacy risk and compliance frameworks can build on their existing programs to meet enhanced obligations and requirements. Companies that have failed to implement a privacy risk framework have an opportunity to design their program from the ground up with the most up-to-date compliance obligations.

Best practices that organizations should consider, for achieving optimal compliance with enhanced privacy obligations and regulatory enforcement, include:

1. Data mapping. Identify what personal data is collected, where it is stored, who has access to it, and how it is used.
2. Implementation of security measures. Protect personal data from unauthorized access or breaches through encryption, access controls, and regular security audits.
3. Development and regular updating of privacy policies. Create transparent privacy policies that outline how personal data is collected, used, and protected. Review and update these policies regularly.
4. Implementation of a strong data governance program. Establish clear data governance policies that outline data protection responsibilities across the enterprise.
5. Employee training. Educate employees on data privacy best practices and on their responsibilities in maintaining compliance within the organization.

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From: Cybersecurity Law & Strategy