5 Privacy Trends to Watch in 2023
After years of people browsing the Internet and utilizing applications with naive recklessness
After years of people browsing the Internet and utilizing applications with naive recklessness, data privacy emerged at the forefront of global attention. People received a wake-up call when their favorite applications and websites began asking them to accept cookies or to disclose their privacy settings – a warning that people and firms should monitor their online activities.
Even though these topics made headlines in 2022 forecasts for digital transformation trends, we have just touched the surface with others and they may remain important through 2023.
- Global Enterprises Deploy Privacy Technologies & AI
More pressure is put on businesses to disclose their practices regarding collecting, using, and storing personal information. The speed with which a company responds to a request for privacy is essential for both the company's operations and its reputation. Hence, many companies are looking to technology to assist them in fulfilling customer orders in a more timely manner.
In this context, the entire market for data privatization presents great potential for AI and automation. By 2024, enterprises worldwide is forecasted to spend up to $110 billion yearly on AI, regardless of industry. AI technologies that automate compliance rules, or automation technologies that quickly anonymize consumer data might eliminate the human element from data collecting. This would provide a new approach to creating insights without infringing on personal privacy.
- Centralized Privacy UX
The need for a consolidated privacy user experience will be driven by rising consumer demand for subject rights and expectations about transparency (UX). Using basic UX elements, such as layering or toggles, businesses may make the privacy experience more user-friendly.
Ahead-of-the-curve enterprises recognize the benefits of consolidating all privacy UX components into a single self-service portal, including notifications, cookies, consent management, and subject rights requests (SRR). Several organizations have recently introduced online account preference centers, which are intuitive in combining privacy control elements with other options.
- Stringent Worldwide Regulations
The CJEU set a precedent ruling on the Schrems II case (EU), which declared the European Commission's Privacy Shield Decision invalid due to intrusive US surveillance programs. The approval of CPRA (as a supplement to the CCPA (US), the new amendments to the APPI (Japan), and the progress on a draught of ADPPA (US), ePrivacy Regulation draught (EU), and Digital Services Act (DSA) (EU) are also indicative that the efficacy of GDPR (EU) is currently being reevaluated. Regulations are becoming more precise, and loopholes are shrinking.
As the operations of businesses expand, they are more likely to face compliance scrutiny. Hence, all enterprises should assess the scope of data privacy regulations and implement best practices that align with these requirements.
- Redefining the New Working Paradigm
As the pandemic unfolded, businesses that shifted to remote operations brought up the issue of whether or not the digital environment was secure. There are currently laws in place to ensure the safety of digital workspaces, but there is a significant amount of potential for improvement. Overall, working from home introduces weaknesses that must be addressed for a safe transition. According to Alliance Virtual Offices, cybercriminals target remote employees extensively, resulting in a 238% increase in cyberattacks in the last year.
Many businesses are finding that they must strike a balance between the advantages and difficulties presented by working from home or at an offsite location to maximize their productivity. These hybrid standards provide a fresh obstacle to overcome in regards to information security.
Therefore, in this new context employees must manage compliance, productivity, and privacy without a network boundary. Nowadays, data security is as critical as data analytics testing and confirming data quality. Organizations must comprehend the dangers, implement the appropriate controls, and apply them to a dispersed workforce since the capacity to work remotely is crucial.
- A cookieless world
We may foresee a push for data collection based on permission to obtain first-party data. Although data from third-party sources may improve acquisition methods, it cannot explain a customer's connection with a brand or their buying journey. In addition, there is nothing distinctive about third-party data that can be sold to a rival with equal ease. Overall, there are challenges inherent to dealing with third-party data, including quality, accuracy, currency, and cost.
Due to the new scarcity of third-party data, we can expect a surge in consent-based data collecting to get first-party data. In this era of consumer empowerment, comprehending and reacting to customer desires, requirements, and purposes with contextual relevance is crucial for generating customized and highly targeted experiences that foster brand loyalty and retention.
With explicit authorization, Big Tech is gathering and storing first-party data, so businesses can attract advertisers seeking a particular demographic. Consequently, many firms are shifting focus to collecting enormous volumes of reliable and accurate consumer data.