By 2022, corporate spending on compliance tools related to data protection and privacy is estimated to amount to around 8 billion dollars worldwide.
In the last three years, the implementation of data protection regulations in the EU (GDPR), the United States (CCPA) and, more recently, in Brazil (LGPD) has led to an increase in demand for solutions and services related to #dataprivacy.
While confidentiality is a concern while collecting, processing, storing and using personal data, security is crucial when it comes to protecting that very same information from unauthorised access by third parties, as well as cyber-attacks and data mining.
Measures adopted by several countries to contain the pandemic, such as mandatory lockdown, also included encouraging consumers to do as much as possible online (from carrying out purchases to bank transactions and signing contracts and other legal documents). This shift has, in some cases, accelerated the need for greater proactivity by companies when it comes to privacy and data security whilst also serving to make consumers more demanding and aware of their online presence.
Bart Willemse, Vice President Analyst at Gartner, says that "to increase consumer confidence, executive leaders must develop an adaptive and holistic approach to privacy across the organisation and be proactive (not reactive) when faced with legal challenges in each region".
When we talk about costs and investments related to data protection, an essential factor to consider is the size of each company. However, although the applicable legislation provides for varying obligations depending on the company's size, data protection laws apply across the board.
A Statista report published in November 2020 states that around 27% of small businesses in the EU spent between €1,000 and €10,000 on GDPR-related compliance in 2019 and that only 8% spent over €100,000.
By 2022, corporate spending on privacy-related compliance tools will amount to around $8 billion worldwide. Gartner expects privacy spending to affect stakeholder purchasing strategies, including those of CIOs, CDOs and CMOs. "The current post-GDPR era requires a wide range of technological resources to be used that far exceed the standard Excel sheets of the past." Willemse also believes that the privacy-oriented technology market is still emerging: "What is certain is that privacy, as a conscious and deliberate discipline, will play a considerable role in how and why vendors develop their products. As AI turbocharges privacy readiness by assisting organisations in areas like SRR management and data discovery, we'll start to see more AI capabilities offered by service providers."
In 2021, expect to see a proliferation of data protection laws and regulations around the world. Consumers will demand the protection of their data, and we may also see cyber-attacks making the headlines, forcing various governments to reinforce internal regulatory measures. More effective third-party risk management will have to be sought out by companies as organisations increasingly depend on outsourcing to achieve more efficient operations. Investing in artificial intelligence technologies, the acquisition of more cloud-based services and process automation will allow organisations to create workflows aligned with compliance, increasing collaboration and communication between their teams and centralising risk management and data privacy operations.
For companies, far beyond focusing merely on complying with legal requirements, the challenge is to think about services from a customer-centred perspective, ensuring their data privacy policies reflect the importance of this protection to companies.
Here at the GBI Group, we provide innovative solutions that ensure tailored privacy measures focused on user experiences. By employing solutions that use blockchain and artificial intelligence with decentralised storage, we want to help ensure your business meets all legal data protection requirements.
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