2023 Data Privacy Trends That May Impact Your Compliance


Since the inception of the internet, data privacy has become an ever more pressing necessity. It's astounding how much personal data is now being transmitted over computer networks; now it has become imperative to safeguard it.

HIPAA, GDPR or any other industry-based privacy rules must be adhered to by most companies. By 2024, 75% of the world's population will have their personal data secured under one or more privacy regulations.

Data privacy compliance does not have to be the domain solely of large enterprises. It goes hand-in-hand with cybersecurity, and applies equally to all businesses regardless of size.

Between July 2020 and August 2021, GDPR violations increased by 113.5%, leading to 124.92% more associated fines. HIPAA infractions can incur penalties ranging from $100-$25,000.

Data privacy should be a top priority in all data collection processes. Companies must take great care to safeguard personally identifiable information (PII) when they collect, store and send it. This necessitates putting in place adequate safeguards.

Staying ahead of the latest data privacy trends is essential if you want to guarantee that you're fulfilling your privacy compliance responsibilities. To that end, we've identified the top data privacy trends for 2023.

What is the state of data privacy compliance today?

Governance through AI

Around 40% of privacy compliance technology relies on artificial intelligence (AI). AI is becoming an integral component in many applications that we use every day.

AI can predict what you will type next. Photoshop even uses AI to make frowning people smile when editing photos - an example of its power!

It's no shock that AI powers many of the algorithms responsible for protecting data. But what happens if there is an issue with AI?

AI governance seeks to answer this question. This trend in data privacy is relatively new, as AI has never been more prevalent during the data journey.

Organizations must properly manage AI when it is employed for data protection, to guarantee that sensitive information does not get accidentally exposed through automated processes.

Privacy for Consumers UX

In recent months, we've noticed a growing trend: Customers are becoming more in control of their own privacy. Privacy regulations often require websites and apps to provide data transparency - informing users what data they collect, how it's being collected, and what plans they have for it. They should also give people an "out" so they can get their data back.

These are the reasons consumer privacy UX has become so important. You can think of it as a central hub where users can access privacy settings across various apps, giving them insight into how their data is being used.

Remote employee monitoring becomes more of a focus

The global workforce has been forever altered by the pandemic. Many companies now operate completely remotely or use both in-office and remote staff combinations. Data collection methods have changed due to the dramatic surge in home-based workers, with companies increasing their surveillance on those who work from home.

Monitoring employee devices can present a host of privacy risks. Organizations must ensure they do not violate employees' rights to privacy when conducting this type of monitoring. This is particularly critical when looking into employee device usage patterns.

49% of employees utilize personal computers to do work. Endpoint device monitoring is usually a security measure companies implement to guarantee they do not collect or back up personal data belonging to employees instead of the company.

Data Localization

Location was an issue when TikTok gained popularity. People expressed concerns about their privacy since the company is based in China, where original data storage was done on servers managed by the Chinese government. Furthermore, China has different privacy regulations than other nations like the US or other developed economies.

Data localization will become more commonplace as organizations increasingly consider where their cloud data is stored, since that determines which privacy rules and regulations apply. Companies and governments now need to ask this question: "Where is my information stored?" Many people prefer having their data close by for convenience.

Privacy-Enhancing Computation

Privacy by design is still relatively untapped in AI. Privacy-enhancing computation (PEC) can help developers address privacy concerns by building it into their software and apps. PEC helps address privacy concerns by automating data protection processes, giving rise to better security outcomes for clients.

When purchasing business tools, look for PEC components.

When was the last time you had a compliance review?

What are your data privacy protections, do they meet industry standards, or could there be legal repercussions if not handled properly? Contact us for assistance with an internal compliance review today!