Compliance in 2025: Important changes and how to prepare

Compliance is no longer just about staying out of trouble—it’s about staying in business.

If your company operates globally, collects consumer data, or uses AI, you need to pay attention.

• Governments are tightening data transfer laws, making it harder to move information across borders.
• The EU AI Act is here, and AI companies will need to prove they’re compliant or risk being shut out of the market.
• The U.S. is moving toward a federal privacy law, meaning businesses relying on patchwork state regulations won’t be ready.

The companies that get ahead of these changes now will:

• Win enterprise contracts that demand compliance
• Avoid multi-million-dollar fines and lawsuits
• Build consumer trust in a privacy-first market

Let’s break down what’s changing and how to prepare before it’s too late.

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1. Cross-Border data transfers: Governments are tightening control

Companies that transfer data between countries—whether through cloud providers, global teams, or international operations—need to rethink their strategies now. Governments worldwide are locking down data and imposing stricter regulations on where it can be stored, who can access it, and how it moves across borders.

United States: New Rules for Foreign Data Transfers

The U.S. is cracking down on who gets access to sensitive consumer and government data, especially when it involves adversarial nations like China, Russia, and Iran.

• The Department of Justice introduced new rules in October 2024 that prevent data brokers from selling bulk U.S. consumer data to foreign entities.
• Companies that collect and store sensitive information may face restrictions on where they can process and transfer data.

What this means for businesses:

• If your company relies on third-party data brokers, you need to audit where that data is going.
• If you operate internationally, expect more scrutiny over who can access consumer and government-related information.

EU-U.S. Data Privacy Framework: Still Under Threat

The EU-U.S. Data Privacy Framework was supposed to make data transfers between the U.S. and Europe easier. But legal challenges are already putting it on shaky ground.

• Privacy activists argue that the framework doesn’t go far enough to protect EU citizens’ data.
• If it gets overturned, companies will once again need to update their data processing agreements or face potential non-compliance fines.

What this means for businesses:

• If you transfer data between the U.S. and the EU, you need a backup compliance plan in case the framework collapses.
• Enterprise clients in Europe may demand additional guarantees that their data remains secure.

China: Data Localization Laws Getting Stricter

China already has some of the strictest data laws in the world, and things are only getting tougher.

• Under the Personal Information Protection Law (PIPL), companies handling Chinese consumer data must store it within China.
• In 2025, additional security assessments and penalties are expected for businesses transferring data outside of China.

What this means for businesses:

• If you operate in China, you must have a clear data residency strategy or risk being shut down.
• Companies that use global cloud storage solutions need to verify compliance with Chinese regulations.

India and Brazil: New Data Regulations on the Horizon

• India’s Digital Personal Data Protection Act (DPDPA) requires companies handling Indian consumer data to appoint local representatives and comply with new data security measures.
• Brazil’s LGPD (Lei Geral de Proteção de Dados) continues to evolve, and stricter enforcement is expected in 2025.

What this means for businesses:

• Companies operating across multiple regions need to rethink how they store and process international data.
• Localized compliance strategies are becoming a must-have, not a nice-to-have.

2. U.S. Federal Privacy Law: The end of state-by-state compliance

The U.S. has been lagging behind when it comes to data privacy, but that’s about to change.

Right now, businesses have to navigate a complex web of state laws, like:

• CCPA (California)
• VCDPA (Virginia)
• CPA (Colorado)

That patchwork system may soon be replaced by a single federal privacy law—and businesses relying on state-by-state compliance won’t be ready.

The American Privacy Rights Act (APRA)

• Introduced in April 2024, APRA is designed to create a unified federal privacy standard.
• If passed, it will override state laws and enforce a national approach to data privacy.
• The law will likely include GDPR-style consumer rights, such as data deletion requests, opt-in consent, and strict data processing rules.

What this means for businesses:

• If you’re only compliant with individual state laws, you need to prepare for a federal standard that may be much stricter.
• Companies that collect, store, and monetize consumer data will have to adjust their privacy policies to avoid violations.
• Stronger enforcement is coming, meaning non-compliance will get expensive—fast.

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3. AI Regulations: A global crackdown on AI compliance

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Governments worldwide are not waiting to regulate AI. If your business develops, sells, or uses AI, expect new transparency and documentation requirements.

The EU AI Act: The First AI Law in the World

• Introduces a four-tier risk system for AI applications, where high-risk AI must follow strict compliance requirements.
• AI systems used in hiring, healthcare, and finance must have full transparency, auditability, and human oversight.
• Fines for non-compliance: Up to €35M or 7% of global revenue.

What this means for businesses:

• Companies using AI must classify their systems based on the EU’s risk levels.
• AI developers must document training data sources, testing processes, and mitigation strategies.
• European clients will demand AI compliance proof before signing contracts.

AI Copyright and Ethics: The Next Big Compliance Battle

AI-powered businesses aren’t just facing regulations—they’re also under legal scrutiny for copyright infringement and ethical concerns.

• AI models trained on copyrighted data may be violating intellectual property laws.
• Governments are considering AI-generated content labeling laws to prevent misinformation and deepfakes.
• Bias in AI systems is becoming a legal liability, with new mandates on fairness and explainability.

What this means for businesses:

• If your business relies on AI automation, expect new compliance rules around content generation, transparency, and bias mitigation.
• AI developers must prepare for stricter copyright enforcement, especially in media, publishing, and content-driven industries.

How businesses can stay ahead of compliance changes

Compliance isn’t just about avoiding fines—it’s about future-proofing your business.

• Audit your global data transfers to ensure you’re prepared for new localization laws.
• Prepare for stricter AI regulations by documenting your AI models, training processes, and compliance measures.
• Monitor U.S. privacy laws closely and be ready for a shift toward federal enforcement.
• Invest in compliance automation to reduce risk and stay ahead of regulatory shifts.

Companies that take proactive steps today will be the ones that thrive in 2025. The rest? They’ll be playing defence when the regulations hit.

Is your business ready?

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