26% of Privacy Professionals Anticipate “Material Privacy Breaches” by 2026 Due to Budget Cuts and Staff Shortages Straining Teams

The Privacy Crunch: A Growing Concern for Organizations

In January 2025, ISACA released a research report that sent shockwaves through the tech community, revealing how organizations were inadvertently sidelining privacy budgets. This trend, initially alarming, has continued to spiral downward. A year later, the situation appears more dire, with privacy teams facing unprecedented challenges not just from dwindling funds but also from pressing resource shortages and an uptick in regulatory compliance.

The Financial Squeeze on Privacy Teams

According to the recent findings shared by ISACA, nearly 44% of European-based survey respondents indicated that their privacy teams are already underfunded. Alarmingly, a staggering 54% anticipate further budget cuts in 2026. This fiscal tightening is not just a rhetorical concern; it has tangible repercussions on the efficacy and morale of privacy professionals who are tasked with safeguarding sensitive data in an ever-evolving landscape.

Staffing Shortages: A Double-Edged Sword

The challenges don’t end with funding. Survey results signal a stark reality—39% of privacy legal workers and over half of technical privacy personnel are grappling with significant staffing shortages. These gaps make it increasingly difficult for organizations to manage the rising wave of privacy obligations and stress incurred from greater technological complexities.

The AI Adoption Dilemma

Compounding the dilemma, a considerable 49% of respondents have identified the management of risks linked to emerging technologies, particularly AI, as a primary obstacle to their long-term strategies. The rapid pace of technological change is not merely a challenge; it’s placing excessive strain on the remaining teams, with over one-third of participants acknowledging this as a critical burden.

Compliance Chaos

As organizations rush to integrate new technologies, compliance with ever-changing regulations has emerged as another prominent stress driver. A significant 64% of survey participants report their teams are increasingly burdened by compliance-related challenges that require swift adaptation—a task made more complex by insufficient resources and workforce capacity.

The Future Outlook for Privacy Teams

The data paints a somber picture: privacy teams are under pressure from all sides—financial constraints, staffing challenges, and a rising tide of regulatory requirements. Chris Dimitriadis, global chief strategy officer at ISACA, emphasizes the contradiction many organizations face: increased privacy risk and regulatory expectations paired with a contraction in investment and support for privacy operations.

Awareness and Prioritization Issues

Despite repeated calls for better support from upper management, a disheartening number of professionals feel that board-level attention remains inconsistent. Approximately 26% of respondents stated that their boards inadequately prioritize privacy initiatives, presenting a significant hurdle to effective risk management.

Dimitriadis underscores this concern by emphasizing that underestimating privacy translates into jeopardizing a fundamental aspect of digital trust. A single data breach can unravel years of brand loyalty, tarnish customer relationships, and incur hefty regulatory penalties.

The Positive Shift in Perspectives

Yet, there is a silver lining in the current landscape. As the risk of hefty fines for regulatory non-compliance becomes more apparent, awareness around privacy issues has started to shift positively among executives. Notably, more than 79% of respondents now employ frameworks like GDPR to guide their privacy programs, showcasing a growing recognition of the need for structured approaches to compliance.

Furthermore, 64% of organizations have instituted formal incident response plans that are integrated into their broader privacy strategies. While this figure represents progress, ISACA encourages a broader, more holistic perspective when evaluating privacy initiatives.

Understanding the Need for Comprehensive Support

Despite improvements, nearly half of the respondents reported that their privacy programs were viewed as primarily "compliance-driven" by boards, which can be limiting. ISACA warns that this narrow focus ignores the broader landscape of privacy-related risks, exposing companies to potential vulnerabilities.

The underlying message from ISACA is clear: enhancing privacy protections cannot be achieved through checklists or by merely tightening controls. It necessitates sustained investment in human capital, governance frameworks, and a company-wide culture that prioritizes privacy—a call to action that must resonate from the highest levels of management down through every department.

In Summary

As organizations navigate this challenging landscape, the imperative for attention to privacy has never been more essential. Funding, staffing, and comprehensive prioritization of privacy must intertwine to foster trust in digital environments and ensure compliance in a complex regulatory landscape. The stakes are high, and the need for robust, forward-thinking strategies is critical for every organization moving into a rapidly digital future.