The Future of Data Protection Enforcement: It’s Hammer Time!

The landscape of data protection and privacy continues to expand, and with that expansion comes increased scrutiny and the promise of increased enforcement. 2025 will mark a convergence of the proliferation of artificial intelligence, a growing understanding of and desire to exercise consumer rights and protections and new legislation, meaning increased regulatory enforcement is inevitable. Organizations will likely need to expand current privacy compliance protocols sooner rather than later; the new year means increased data protection obligations and stronger penalties for noncompliance. This article explores the impending new legislative landscape, what increased enforcement may look like and how companies can prepare for optimal compliance.

Key Factors Driving Increased Enforcement

Advancing Technology: Artificial Intelligence

AI systems are becoming more advanced and more intermingled with human life. These solutions are processing massive amounts of personal data from various sources, automatically in most cases. Numerous ingestion points and the volume of data required for AI functionality have caused concerns around the collection and application of personal data in AI systems. AI’s complex data processing capabilities make it difficult to establish and exercise data subject rights. Regulators have developed enforcement strategies to ensure required consents, opt-in/opt-out options, limited data access and enhanced transparency in data usage, and the risks to individuals are baked into compliance processes from end to end.

Growing Consumer Awareness & Expanded Protections

Today’s consumers are knowledgeable about the risks of sharing their personal information online. Recent industry reports indicate businesses saw a 246% increase in data subject requests between 2021 and 2023, and that percentage continues to grow exponentially year over year. Consumers are aware of their rights as data subjects, and as consumer protections continue to expand, they have even more rights to exercise. Consumers will have greater authority to opt out, access, correct and delete their personal data, in addition to legislative protections around the collection and use of personal and sensitive data.

At least eight new state laws come online in the United States in 2025, with six going into effect on Jan. 1, 2025. Additionally, the EU AI Act will become enforceable in 2025, and various countries will introduce updates and new provisions to existing AI regulations. And 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.

It has long been predicted that stricter enforcement of privacy regulations would be inevitable. In addition to global data protection authorities’ concerns about the misuse of personal data, more sophisticated cybersecurity threats and a lack of transparency around data collection and use since the emergence of AI, regulators have also 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 existing privacy rules in Europe 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 regularly collaborate 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.

As the focus on data privacy continues to grow, companies may find it increasingly difficult to avoid penalties for noncompliance. In 2023, noncompliance with the General Data Protection Regulation (GDPR) cost companies over two billion euros — 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 for Optimal Compliance

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 companies will be required to conduct more rigorous privacy impact assessments (PIAs), implement stricter controls to ensure data minimization and purpose limitations 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 to incorporate data privacy protections into their processes, operations, governance structure and policies. The International Association of Privacy Professionals (IAPP) reports that 64% 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 organizations should consider for 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 their responsibilities in maintaining compliance within the organization.

In this new era of data privacy enforcement, compliance is no longer optional, but instead an essential imperative for businesses across all industries. Companies should prioritize compliance as a strategic initiative rather than a box-checking activity. The organizations that proactively evolve along with the privacy regulatory landscape will thrive despite increased scrutiny and enforcement. In the end, those companies will gain a competitive advantage.

Melissa Paulk serves as director, data privacy and security solutions at QuisLex. Paulk specializes in data privacy and complex technology transactions and currently advises corporate clients on building strong privacy programs.

This article appeared in Cybersecurity Law & Strategy, an ALM publication for privacy and security professionals, Chief Information Security Officers, Chief Information Officers, Chief Technology Officers, Corporate Counsel, Internet and Tech Practitioners, In-House Counsel. Visit the website to learn more.