Privacy and AI Compliance in 2025: Essential Strategies for Cybersecurity Leaders

Introduction

In today’s rapidly evolving landscape of artificial intelligence (AI) and privacy regulations, cybersecurity leaders find themselves at a crossroads. The traditional view of privacy as a mere compliance requirement is fast vanishing; it has become a vital strategic element that must permeate every level of an organization. As new privacy laws proliferate—like California’s recent Transparency in Frontier Artificial Intelligence Act (TFAIA) and the EU AI Act—organizations face greater risks and responsibilities. Cybersecurity leaders are not only tasked with protecting data; they also have to ensure that foundational privacy principles—transparency, consent, and accountability—are intricately woven into their operational frameworks. This article will delve into the necessity of adopting privacy by design, strategies for maintaining compliance amidst growing regulations, and methods for integrating privacy across various business units. This resource will offer actionable insights to help organizations navigate this complex environment successfully.

Understanding the Need to Build Privacy by Design

To remain compliant and competitive, organizations must shift their approach to privacy from a reactive model—often viewed as a “minimum viable product”—to a proactive framework that integrates privacy into organizational culture. Historically, compliance efforts revolved around laws like the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA), but ongoing changes are making it essential for privacy practices to evolve continuously. With emerging state laws—such as eight new regulations expected in 2025 and a potential ninth in Massachusetts—integrating privacy as a core function is imperative.

Key principles to consider include data minimization, which focuses on collecting only the data that’s necessary for specified purposes, thereby lowering both storage burdens and risks. Tools such as privacy audits and risk assessments play crucial roles in establishing compliance and accountability. Beyond meeting regulatory checks, these processes help in building consumer trust and organizational resilience. Ultimately, embedding privacy into the very fabric of an organization not only mitigates potential risks but also facilitates a more responsible data operating environment.

Staying Ahead of Emerging Regulations in Privacy & AI

The regulatory landscape surrounding privacy and AI is increasingly intricate, with over 1,000 AI-related laws proposed in 2025 alone. For instance, California has recently established the first U.S. law focused specifically on AI. The EU AI Act and NIST AI Risk Management framework offer global standards that organizations must meet. Emerging regulations emphasize critical elements such as transparency, consent, and accountability—especially concerning automated decision-making processes and sensitive data processing practices.

Consider the Federal Trade Commission’s (FTC) recent penalties against companies for utilizing unapproved data within AI models. Organizations must align their AI governance structures with privacy principles, ensuring thorough documentation about data usage and robust consent mechanisms. Safeguards against profiling vulnerable populations and maintaining clear decision-making pathways are also essential elements in this new landscape. Furthermore, states like California and Colorado mandate universal opt-out mechanisms, requiring businesses to honor consumers’ choices concerning data sharing and targeted advertising. Compliance, therefore, should transition from a set-and-forget approach to an ongoing process requiring continuous monitoring, testing, and adjustment of privacy controls.

Incorporating & Aligning Privacy With Innovation & AI

Implementing privacy does not have to stifle innovation; rather, it can serve as a catalyst for it. Privacy-enhancing technologies (PETs) are increasingly making their way into corporate workflows, proving that privacy and innovation can coexist harmoniously. By instilling privacy-by-design concepts into AI governance from the outset, companies can integrate consent and transparency effectively into their data models.

Creating cross-functional collaboration between privacy, cybersecurity, and legal teams is crucial for achieving alignment between privacy measures and innovative processes. Joint assessments of privacy and cybersecurity risks ensure comprehensive coverage while eliminating redundancy in compliance efforts. Building data inventories and performing mapping exercises enable organizations to track data flows accurately, respond effectively to consumer inquiries, and meet compliance mandates efficiently. Additionally, managing third-party vendors—from whom organizations can inherit risks—remains paramount. Ensuring contracts contain standardized privacy clauses and compliance specifications helps mitigate potential vulnerabilities arising from vendor practices.

Key Takeaways for Cybersecurity Leaders

1. Proactive Privacy Integration: Treat privacy as a living, breathing component of organizational processes—one that requires ongoing attention rather than a simple checkbox on a compliance checklist.
2. Regulatory Awareness: Keep abreast of the rapidly changing privacy and AI laws, ensuring understanding of both state-specific regulations and larger international frameworks like the EU AI Act.
3. Cross-Functional Collaboration: Form alliances among privacy, cybersecurity, and legal departments to facilitate streamlined risk assessments and synchronized compliance efforts.
4. Consumer Trust: Foster trust by demonstrating transparency, complying with consumer opt-out requests, and protecting sensitive information—particularly that involving children or biometric data.
5. AI Governance: Coordinate AI developments with core privacy principles to ensure personal data is handled ethically throughout automated decision-making processes.

Adopting these strategies can help cybersecurity leaders manage the intricate intersection of privacy, AI, and compliance while simultaneously promoting innovation and fostering consumer trust.

How Forvis Mazars Can Help

Are you interested in exploring these pivotal topics in greater depth? We invite you to watch our archived webinar, “What Cybersecurity Leaders Need to Consider for Privacy & AI Compliance” or reach out to a professional at Forvis Mazars.