5 Emerging Trends in the Future of Data Privacy

With the digitization of our lives, new privacy challenges arise. Therefore, the protection of data privacy is becoming more and more important.

According to Gartner, by 2024, as much as 75% of the global population will be covered by modern data privacy regulations. As a result, companies face a huge challenge. They must be ready to address continuously growing regulatory demands.

In this article, we’ll look at five upcoming data privacy trends that support privacy practices and pose key challenges for business leaders. We encourage you to discover data engineering services to benefit from full data privacy.

Impact of technology development on data privacy

The development of technology has a huge impact on data privacy. Advances in technologies such as AI, data analytics, the IoT, and ML open up new possibilities for collecting, processing, and using data. However, along with these benefits come privacy challenges as well.

Developments in technology may lead to more privacy intrusion as personal data can be collected in greater volume. There is also the risk of abuse, such as:

• Unauthorized access to data
• Security breaches
• User profiling

In a global study by Deloitte, 86% of customers care about data privacy and want more control^[1]. As technology advances, it becomes essential to develop the right legal and ethical framework to protect data privacy.

Governments, organizations, and communities must work together to establish balanced rules for data collection, processing, and sharing that respect users’ rights.

Below we’re presenting five data privacy trends.

The future of data privacy: 5 key trends that need attention

DATA LOCALIZATION

Data localization has become an essential aspect of today’s digital world. The rise of data localization regulations means that more and more countries require data to be stored and processed in the same country where it was originally collected.

This new approach is designed to increase control and protect data privacy. For businesses with international transactions, compliance with different data privacy laws in different countries can be a challenge.

An example is the introduction of the Personal Data Protection Act in China. It requires data on Chinese nationals to be stored in China. As a result, data location planning becomes a priority in designing and purchasing cloud services.

AI GOVERNANCE

Another important trend is data privacy management in the context of AI. The increase in the use of AI in organizations carries the risk of violating the privacy of personal data. It becomes necessary to introduce appropriate regulations and AI management programs that will ensure the protection of user privacy.

In the absence of appropriate actions in this area, there is a risk of irreversible damage to organizations and their reputation. New strategies and techniques that actively ensure privacy in the AI era are emerging.

PRIVACY ENHANCING COMPUTATION (PEC)

Privacy-enhancing computing (PEC) is an important element in data protection. It’s especially crucial when it comes to:

• Data analysis and processing in public cloud computing environments
• Data sharing between parties

Unlike traditional data-at-rest mechanisms, PEC protects data as it is processed. In the past, due to privacy concerns, the analysis and processing of data was difficult. Today, organizations can safely perform these processes. According to Gartner forecasts, by 2025, 60% of large companies will use at least one PEC technique in data analytics, BI, and/or cloud computing.

THE END OF THE THIRD-PARTY COOKIES

Today, consumers want more privacy and control over personal data. As a consequence, the demand for alternative solutions is growing.

Solutions that give users more transparency, choice, and control over how their data is used. That is why traditional third-party cookies have become less prominent. Businesses are relying on first-party data – that is, data that is directly collected from users for marketing purposes.

GREATER TRANSPARENCY

People have the right to expect strict control over their personal information and protection from misuse. Thus, transparency becomes a key element of data privacy protection.

Users appreciate it when companies are transparent about how they collect, process, and use data. What steps can companies take to improve transparency? They can:

• Provide users with understandable and comprehensive privacy rules
• Inform about the purposes of data processing
• Allow easy access to privacy settings
• Immediately communicate about violations
• Educate users on the protection of data privacy

Conclusion

According to Gartner, the average annual privacy budget for large organizations is expected to exceed $2.5 million by 2024. This shows the growing awareness and priority of data protection. In this article, we’ve discussed 5 emerging trends that need attention, i.e.:

• Data localization

Data is stored and processed in the same country for greater privacy protection.

• AI Governance:

Regulations and management programs to protect privacy using artificial intelligence.

• Privacy Enhancing Computing (PEC)

Techniques that enable secure processing of data while maintaining privacy.

• End of third-party cookies

Disappearance of third-party cookies for greater user privacy.

• Greater transparency

Providing clear rules on the collection, processing, and use of data to increase user trust and privacy.

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