Innovation is accelerating, data is crossing borders, and AI is reshaping decisions while consumers demand greater control. The result? Compliance is now front and centre. With complex global privacy laws—from GDPR cookie rules to Google Consent Mode V2—and challenges like automated data processing and cross-border transfers, businesses must anticipate privacy trends. This article explores emerging data compliance regulations and offers strategies to stay ahead.
Key emerging data compliance regulations and recent trends
From enhanced enforcement of existing laws to ongoing updates, here’s what you need to know about emerging data compliance regulations.
#1 Enhanced GDPR enforcement: Key areas under scrutiny
The General Data Protection Regulation (GDPR) set a new standard for data protection laws globally, and its enforcement is only getting stricter. Recent years have seen increased fines for non-compliance, with regulators focusing on adherence to the principles of personal data processing.
Source: GDPR enforcement tracker (CMS)
Data breaches are also a major trigger for GDPR scrutiny. Ensure you have robust data security measures in place, and that your data governance framework is up to scratch.
Additionally, there is also a growing focus towards the use of cookies and other tracking technologies including the need for a clear cookie banner and cookie consent.
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#2 California Privacy Rights Act (CPRA)
The California Privacy Rights Act (CPRA) builds upon the foundation of the California Consumer Privacy Act (CCPA), giving California residents even greater control over their consumer data. This includes the right to correct inaccurate personal data and enhanced protections for sensitive data.
The CPRA has teeth, so understanding its nuances is vital, especially if you handle data of California residents, regardless of where your business is located. It’s like knowing the traffic rules, even when you’re visiting a new city.
#3 Global Privacy Control
The Global Privacy Control (GPC) is a technical specification that allows users to signal their privacy preferences to websites automatically. It essentially tells websites, “Do not track” or “Do not sell or share my personal data”.
Implementing GPC support is increasingly important, as it aligns with the broader movement toward giving individuals more control over their data privacy. This is also mandatory under most US states privacy laws including that of California, Virginia, Montana and Colorado.
Businesses that have adopted a system honouring the GPC demonstrate a proactive approach to privacy.
Think of it as the digital equivalent of putting a “Do Not Disturb” sign on your door.
#4 AI-specific regulations
Artificial intelligence (AI) is transforming industries, but it also raises significant data privacy concerns. As AI systems rely on vast amounts of data collection, regulators are starting to introduce AI-specific rules to ensure fairness, transparency, and accountability.
Expect to see more regulations governing the use of customer data in AI, including requirements for risk assessments, data erasure, and compliance standards.
Global AI regulation efforts
Several regions and countries are actively developing AI regulations:
European Union (EU)
The EU’s Artificial Intelligence Act (AI Act) is a comprehensive effort to regulate AI, including generative AI and other machine learning applications. The law takes a risk-based approach, categorising AI systems into four levels of risk: unacceptable, high, limited (transparency), and minimal or no risk.
It also bans certain AI practices that pose high risk to users and imposes transparency obligations on providers of AI systems. High-risk AI applications, such as those in critical infrastructure, education, employment, and law enforcement, must meet stringent requirements. Companies violating these regulations could face substantial fines.
The first rules of the Act (prohibitions and AI literacy obligations) came into effect on February 2nd, 2025. The law would be fully applicable by August 2026.
United States (US)
While there isn’t a single overarching federal AI law, the US takes a multi-faceted approach. There are multiple AI bills including the AI Bill of Rights under consideration in the Congress outlining principles for safe and ethical AI.
The Federal Trade Commission (FTC) is actively policing AI-powered products, focusing on false or unsubstantiated claims, discrimination, and the need for risk assessments. The National Institute of Standards and Technology (NIST) released the AI Risk Management Framework, a voluntary guide for managing AI risks.
Some states have also enacted AI-specific laws. For example, New York City has an AI bias law requiring audits of hiring algorithms.
Canada
Canada is developing AI regulation at the federal level through the Artificial Intelligence and Data Act (AIDA), part of Bill C-27.
AIDA is under review, with proposed amendments addressing initial concerns. It is uncertain whether it will be passed by October 20, 2025(before the federal election). Additionally, the Canadian Artificial Intelligence Safety Institute launched on November 12, 2024, aims to advance AI safety research and responsible deployment, supported by CAD $2.4 billion in AI initiatives.
AIDA Covers AI systems and machine learning models in international or interprovincial trade, focusing on “high-impact systems” in areas like employment, service access, and law enforcement.
Key requirements include risk management, data measures, user feedback, and accountability frameworks.
Key issues/trends to track in AI regulations
AI regulation is evolving rapidly. Here are some key issues companies should monitor
- Copyright infringement: Expect more legal battles over copyright infringement related to training and using AI systems.
- Cybersecurity and privacy risks: AI technologies can create new cybersecurity challenges and privacy risks that require careful management.
- AI in employment decisions: The use of AI in hiring and other employment decisions will be subject to increasing legal scrutiny.
- Internal governance policies: Robust internal governance policies are essential for managing risks related to AI, including the use of proprietary, confidential, and personal information.
Guide
Here is an in-depth guide for global AI insights
#5 Data localisation laws
Data localisation laws mandate that certain types of data must be stored and processed within a specific country. Countries like China, Russia and India follow this model to an extent.
Some data localisation laws require companies to retain a copy of the data in the country before it is transferred to another country.
Laws like GDPR and CCPA may not explicitly demand data localisation. However, they focus on regulating cross-border transfers to protect the integrity and confidentiality of personal data.
#6 Additional compliance regulations
Besides the ones mentioned above, here are a few more data compliance regulations you should be aware of:
- Federal Information Security Modernization Act (FISMA): A US law that governs information security for federal agencies and their contractors.
- US state privacy laws: Around 20 US states have already enacted privacy laws to protect their residents’ personal information.
- Health Insurance Portability and Accountability Act (HIPAA): Protects sensitive health information and applies to healthcare providers and related entities.
- Sarbanes-Oxley Act (SOX): Affects financial data and requires audits to ensure accuracy and transparency.
- Payment Card Industry Data Security Standard (PCI DSS): It is a set of standards to ensure that businesses handling credit card information keep it safe and secure.
- Digital Markets Act (DMA): A European Union law to make digital markets fairer and more competitive.
- Digital Services Act (DSA): A European Union law to create a safer digital space where the fundamental rights of users are protected.
Strategies for businesses to stay compliant with data compliance regulations
Maintaining data compliance isn’t just about knowing the rules; it’s about implementing effective strategies to adhere to them. Here are some actionable steps you can take:
#1 Implement a centralised data management system
A centralised data management system allows you to have a clear overview of all the data your organisation handles, where it’s stored, and how it’s processed. This makes it easier to implement access controls and ensure data privacy.
Think of it as having a single source of truth for all your data, making it easier to manage and protect. However, you must strengthen the security policies and compliance frameworks while also regularising the data backups.
#2 Conduct regular data audits
Audits are essential for identifying vulnerabilities and ensuring that your data compliance practices are up to date. Regular assessments can help you spot cyber threats, potential data breaches or any unauthorised access before they occur.
#3 Provide comprehensive training
Ensure that all employees understand their roles and responsibilities in maintaining data compliance. Regular training sessions tailored to their roles can help prevent accidental non-compliance.
#4 Update your privacy policies
Your privacy policies should be clear, concise, and easily accessible to your users. Make sure they accurately reflect your data collection and data processing practices.
For this, you may use a privacy policy generator to ensure that your privacy policy is comprehensive and compliant with relevant regulations.
#5 Employ Data Protection Officers (DPO)
Consider appointing a Data Protection Officer, especially if your organisation handles large amounts of sensitive data. A DPO can provide expert guidance and oversee your data compliance efforts.
How to prepare for future data compliance regulation challenges?
The regulatory compliance standards are always evolving, so it’s important to stay proactive. Here are some tips for preparing for future challenges:
- Monitor regulatory changes: Stay informed about upcoming changes to privacy regulations.
- Engage with industry experts: Connect with information security experts to gain insights and best practices.
- Implement adaptive systems: Design your data management systems to be flexible and adaptable to new requirements.
- Focus on ethical AI: As AI becomes more prevalent, prioritise ethical considerations and data compliance standards in your AI initiatives.
By taking these steps, you can ensure that your organisation is well-prepared to navigate the ever-changing landscape of data compliance regulations.
Stay informed, stay proactive, and prioritise data privacy to build trust with your customers and safeguard your business.
Furthermore, consider using AI observability to gain in-depth insights into AI system operations, enabling more informed decisions about compliance-related investments.
FAQ on data compliance regulations
Businesses should strengthen security controls, conduct regular data audits, provide comprehensive training to employees, update privacy policies, and consider employing a Data Protection Officer (DPO). Staying informed about regulatory changes, engaging with industry experts, implementing adaptive systems, and focusing on ethical AI are also essential.
AI-specific regulations are reshaping how businesses approach data compliance by introducing additional layers of accountability and risk management in the use of artificial intelligence. Key impacts include:
- Risk management and transparency: Most AI regulations require companies to perform risk assessments and maintain transparency in how AI systems process personal data.
- Algorithmic audits: Businesses may need to conduct regular audits of AI systems to prevent bias, ensure fairness, and avoid discriminatory practices.
- Data handling and erasure: New rules often mandate stricter controls over how data is collected, stored, and, when necessary, erased.
- Global variation in standards: With different regions adopting varying approaches, businesses must adapt their data compliance strategies to meet diverse requirements.
A consent management platform is an essential tool for businesses striving to comply with modern data privacy laws by streamlining and automating how user consents are collected, managed, and audited. Key benefits include:
- Automated consent collection: Platforms like CookieYes simplify the process of gathering user consent for cookies- ensuring compliance with regulations like GDPR and CPRA.
- Real-time updates: As laws evolve, a proactive consent management system can be quickly updated to reflect new requirements, such as those introduced by GPC.
- Audit trails and reporting: By maintaining records of user consent, these platforms provide critical evidence during regulatory audits.
- Enhanced customer trust: Clear and transparent consent mechanisms build trust with consumers by giving them control over their personal data, which is increasingly important amid growing privacy concerns.
Safna Y Yacoob is a lawyer turned data privacy writer. At CookieYes, she transforms complex privacy regulations into actionable insights for businesses. On off-hours, find her brightening days with one-liners, spinning playlists, or watching feel-good movies.
