OpinionThe quiet revolution of privacy: How organizations can turn privacy into a competitive advantage in 2025
Opinion
The quiet revolution of privacy: How organizations can turn privacy into a competitive advantage in 2025
"The year 2025 is set to be a turning point in the world of privacy. While technical and regulatory challenges will deepen, organizations that take a proactive approach can turn privacy into a significant competitive advantage," writes Gal Ringel, founder and CEO of Mine.
In the tech world, significant changes often occur beneath the surface, long before the broader public becomes aware of them. While 2024 saw notable developments in the field of privacy, 2025 is expected to be the year when these changes materialize on the ground. As the founder and CEO of Mine, an Israeli startup providing solutions for data privacy management and global regulatory compliance, I am constantly exposed to the challenges and opportunities shaping organizations worldwide.
Privacy in the Age of AI: The Decade’s Greatest Challenge
One of the defining trends of 2024 was the sharp rise in the adoption of artificial intelligence (AI) technologies by organizations. Tools like ChatGPT and large language models (LLMs) have revolutionized business operations but also introduced new risks in privacy and data security. Recognizing the need for oversight, the European Union and various U.S. states have introduced legislation, such as the European AI Act and Colorado’s AI Law.
In 2025, the greatest challenge will be translating these regulations into actionable practices. Organizations that take a proactive stance, adopting sound AI governance principles and embedding them into their operations, will thrive. On the other hand, those waiting for regulatory enforcement may find themselves racing to catch up.
The first step in tackling this challenge is gaining a thorough understanding of where and why AI is being utilized within the organization. Only then can an effective governance framework be developed to address the associated risks and challenges.
The European Union Leads the Way
The European Union continues to set the global standard for privacy, building on the foundation of GDPR. In 2024, the Digital Services Act (DSA) came into force, requiring platforms like Meta and Google to promptly remove illegal content, maintain transparency in content management, and provide regulators with access to their data.
Additionally, the Digital Operational Resilience Act (DORA), set to take effect in January 2025, will require financial institutions to enhance their cybersecurity systems, improve risk management, and address cyber threats.
In 2025, the EU is expected to intensify its regulatory efforts, particularly in finance and security. Organizations must prepare for increased scrutiny and compliance requirements under laws like the DSA and Digital Markets Act (DMA). Non-compliance could result in fines of up to 10% of global revenues, underscoring the urgency of early and proactive compliance.
Texas Takes the Lead as California Falls Behind
For years, California was considered the epicenter of privacy enforcement in the U.S. However, 2024 marked a shift, with Texas emerging as a leader in this domain. The Texas Data Privacy and Security Act has positioned the state at the forefront, with new legislation and assertive enforcement measures. Over the past year, Texas has levied significant fines against companies like Meta and launched lawsuits against General Motors for privacy violations.
In 2025, Texas is expected to continue its leadership in privacy enforcement, focusing on child data protection and increased oversight of data brokers. This trend coincides with a rise in the number of U.S. states adopting privacy legislation, expected to reach 16 by the end of the year. For organizations, this means navigating an increasingly complex regulatory landscape.
Automated solutions will become essential for managing compliance intelligently and mitigating risks in an ever-evolving regulatory environment.
The Challenge of Children’s Privacy
Children’s privacy was a focal point in 2024, though progress faced significant regulatory challenges. Despite bipartisan support in the U.S., Congress failed to pass critical laws like the Kids Online Safety Act (KOSA) or updates to the 1998 Children’s Online Privacy Protection Act (COPPA). Lobbyists from the tech industry argued that stricter regulations would drive up costs and harm user experience, stalling legislative advancements.
In 2025, children’s privacy is expected to regain attention, with federal updates to COPPA and stronger enforcement in states like Texas. Organizations will need to invest more in systems that safeguard children’s data, emphasizing age-appropriate design and minimizing data collection.
A Global Trend: More Laws, More Complexity
The year 2024 brought a surge in global privacy legislation. Countries like India and Indonesia joined the growing list of nations with comprehensive data protection laws. Looking ahead, 2025 will likely see stricter regulations in the Asia-Pacific region, including Thailand, Vietnam, and Sri Lanka, some of which are introducing their first comprehensive privacy laws.
This global trend raises the bar for multinational organizations. To adapt, they must adopt smart tools tailored to diverse regulatory frameworks, enabling them to navigate evolving compliance requirements while maintaining global alignment.
Conclusion: Privacy as a Strategic Opportunity
The year 2025 is set to be a turning point in the world of privacy. While technical and regulatory challenges will deepen, organizations that take a proactive approach can turn privacy into a significant competitive advantage. By leveraging automation, efficient risk management, and advanced security measures, organizations will not only meet regulatory requirements but also build customer trust and create real business value.
Gal Ringel is the founder and CEO of Mine.
