2024 will mark significant advancements in consumer awareness and new practices regarding online privacy and security. With the rise of AI-driven privacy challenges, we believe organizations on a journey to make the most of their data will need to double down on implementing robust privacy protection measures and privacy-enhancing technologies in the evolving yet still maturing landscape of data privacy.
As we enter 2024, data privacy legislation is changing rapidly. Predictions from Gartner1 indicate that 75% of the global population will have personal data protection under expanding privacy regulations by the end of this year. The shift to remote work also intensifies privacy risks through increased access to data on unsecured networks. Transitioning from the current landscape of data vulnerability to the imminent future, we aim to highlight the emerging trends in 2024, underscoring the critical need for robust privacy protection measures.
The evolving landscape of online privacy and security shows a notable improvement in consumer behavior, driven by the demands of hybrid work environments and a heightened awareness of cyber risks. The widespread adoption of multifactor authentication (MFA) and increased vigilance in cyber incidents, such as ransomware attacks and data breaches, have contributed to this positive change. This shift benefits organizations, as it eases the challenge of managing security risks from remote employees using potentially insecure home networks and devices.
In addition, Consumers have become more mindful about granting permissions to mobile apps and are increasingly aware of the consequences of data breaches and cyber attacks. However, there remains a persistent concern about how companies manage and safeguard personal data. Incidents like the recent 23andMe2 data breach underline the vulnerability of even the most sensitive information. In 2024, users might expect more than just boiler-plate assurances of privacy; as they are likely to switch to services that offer better protection of their rights.
Despite expanding regulations, AI-driven privacy breaches predicted to surge at an alarming pace. A recent survey by Garter revealed that 40% of organizations reported experiencing an AI ethics violation or compliance failure1, yet only 25% of these incidents involved malicious actions, highlighting systemic governance gaps.
Unchecked AI systems ingest biases and toxic data, setting the stage for future compliance challenges once audited. Facial analysis tools still struggle with demographic accuracy disparities, while biased language models generate harmful outputs before oversight kicks in. The lack of visibility into embedded AI decisions or training data compounds these risks, and as AI usage becomes more ubiquitous, the risks associated will only escalate.
Privacy regulations surrounding AI systems are expanding rapidly globally. In the US, laws like California's CCPA and Virginia's CDPA now include specific provisions around data minimization, purpose limitation, and opt-out requirements for AI models. Meanwhile, the EU is debating regulations mandating certain AI applications deemed "high risk" with extra oversight on training data handling.
Diverse national and regional policies pose challenges for organizations leveraging AI innovation globally. For instance, an app leveraging an enterprise large language model using personal data without proper consent and data security might lead to hefty fines in case of a privacy breach.
The cascading volume and variability of policies create massive challenges for legal, risk, and IT teams tasked with ensuring adherence. With limited visibility into how data flows through AI systems, auditability suffers. Continually tracking regulatory changes across markets and re-engineering controls introduces excessive resource overheads. Inflexible data infrastructure also hinders responding to new consent, access, and portability requirements.
Privacy-enhancing technologies (PETs) offer proactive navigation of this complex regulatory environment while future-proofing compliance. Integrating PETs into data pipelines and AI systems ensures enforceable data governance, access controls, and standardized protections by design. This approach facilitates innovation while reducing risks, turning the patchwork of privacy rules into a sustainable asset.
Future data regulations are likely to mandate privacy enhancements for emerging technologies. Privacy by design principles demands embedding safeguards like data minimization into systems handling personal information. Frameworks focusing on preventative compliance fuse privacy and governance into data infrastructure, ensuring standardized protections and transparent usage across pipelines.
Embedded privacy enhancement allows innovation to progress freely while letting centralized guardrails painlessly adapt to future regulations. Technologies like synthetic data, homomorphic encryption, and gradual anonymization through format-preserving encryption offer distinct strengths and tailored utility levels based on individual business needs.
Government organizations such as ICO3 and the White House4 strongly recommend PETs adoption to future-proof compliance. As Alexander Macgillivray, Principal Deputy United States Chief Technology Officer, stated, PETs “can provide a pathway toward this future by leveraging data-driven technologies like artificial intelligence (AI), while preserving privacy.”
Faced with this landscape, all businesses that use personal data should prioritize responsible data stewardship that complies with human rights. An ethical data stewardship-based technology approach can make navigating the ever-growing web of privacy and artificial intelligence requirements easier. Enhancing privacy opens the door to ethical innovation that respects user permission and enables organizations to leverage the transformative potential of data fully.
AlterID stands as a leading alternative, offering data-centric solutions that seamlessly integrate into existing data infrastructures. This native fusion across the data lifecycle simplifies compliance for legal, risk, and IT teams and strikes the right balance between privacy and data usage acceleration.
We look forward to supporting your organization’s growth objectives. Get in touch with us today to explore further.
2. https://techcrunch.com/2023/12/04/23andme-confirms-hackers-stole-ancestry-data-on-6-9-million-users/
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