In May 2018, the European Union implemented the General Data Protection Regulation (GDPR), a unified legal framework organizations across the EU must follow when handling personal consumer information. GDPR was established to address concerns over data privacy and the misuse of personal data.
Fast-forward to today. Data breaches have escalated, and public demand for transparency and control is growing. Organizations face an increasingly complex web of regulations, and navigating compliance in 2025 has become more challenging.
What is data privacy, and why is it so important?
Data privacy involves properly handling personal data, focusing on consent, notice, and regulatory adherence. Protecting the data is critical for complying with laws and maintaining customer trust in a digital age where personal data has become a valuable asset. It covers any information that could directly or indirectly identify individuals, such as their names, IP addresses, biometrics, and online activity.
Data breaches have become more frequent and costly than ever. In 2024, the average cost of a data breach was USD 4.88 million globally, affecting both a company’s financial stability and consumer confidence. 2025 will see an increased public demand for data privacy rights as consumers become more aware of their digital footprint.
Key trends for data privacy in 2025
1. Rise of state-specific US privacy laws
The United States doesn’t have a comprehensive federal law like the GDPR. This means that data privacy in the US is regulated state-by-state, with each state stamping its own twist. In 2025, new laws would have been implemented in states like Minnesota, Nebraska, and New Jersey, joining other states like California’s Central Consumer Protection Authority (CCPA). These laws often mirror the GDPR by enhancing individual data access, correction, and deletion rights. Some states have also mandated companies to conduct data protection assessments for high-risk activities, like profiling and targeted advertising.
2. Data sovereignty and localization
The rise of cloud and hybrid working models enables companies to store their data in different clusters. While it can be good for security as the whole database isn’t in a single space, several nations enforce data localization. They require the company to store data related to their citizens within their borders. This reflects concerns over data sovereignty as governments look to limit cross-border data flows to safeguard against cyber espionage and breaches. Organizations must, therefore, adapt data management practices to comply with local data retention and enhance their security.
3. AI and data governance
Generative AI and AI-driven data analysis are taking over the world with their speed and accuracy. However, there’s growing attention to what personal information these systems are being fed and how it’s used. Privacy regulators are pushing for transparency and ethical standards in AI, as seen in the EU’s AI Act and emphasizing the responsible use and protection of data in AI models. Organizations are encouraged to build frameworks that ensure AI operations comply with data privacy regulations.
4. Shared responsibility in data security
Compliance is increasingly seen as an organization-wide effort rather than solely the responsibility of the IT department. The “shared responsibility model” is gaining traction, where organizations are asking every department to take responsibility for the data it handles. In a distributed setup where every department is working in siloes, this model fosters a proactive approach to data protection, encouraging transparency in the data being used and reducing the risk of compliance violations by embedding privacy within the organizational culture.
5. Enhanced consumer rights
Consumer rights are getting expanded globally due to the introduction of privacy laws. Individuals are granted greater control over their data and whom they choose to share the data with. In Europe, GDPR continues to evolve, while in the US, laws now enable consumers to know, access, delete, or restrict their data usage, promoting transparency and accountability. Organizations must be prepared to implement self-service portals or similar mechanisms to empower consumers and remain compliant
Wrapping up
As regulatory landscapes rapidly evolve and data processing practices become more sophisticated, navigating data privacy compliance requires a dynamic approach. Companies need to adopt a proactive, decentralized privacy strategy that integrates compliance and data security across all levels.
By partnering with Lisianthus Tech, organizations can gain peace of mind knowing that they are up to date with compliance regulations in the coming year.