Data privacy, AI and crypto are becoming critical parts of regulation this year. As technology progresses, the demand for regulation increases at a similar pace. Governments have tried to maintain pace with the rise of new tech and other platforms, attempting to protect customers, drive competition and deliver safe areas for consumers. In the last year, cyber attacks impacted big and small businesses. As we move into 2023, it’s clear businesses must protect themselves against potential cyberattacks, and inevitable that the rising focus on data protection and security will transform into stricter regulations.
In a recent interview with Verdict, several industry experts voiced their opinion on the coming year. Seth Batey, data protection officer of data movement platform Fivetran, explained that companies seeking the potential of big data must prioritise evolving data privacy changes and regulations. Ignoring this will impact profitability and potentially damage the entire business. Batey believes a new era of data privacy reform is upon us.
For 2023 we will likely see more combined security options between leading cloud providers and other security software options as more executives ask IT leaders about their security systems and regulations. The tech industry is experiencing considerable growth, but this year we will see additional legislation which impacts AI businesses significantly. In the short term, it may have a detrimental impact on AI, but in the long term, uptake will likely increase due to higher customer confidence in products and solutions. The new legislation will reduce the accountability placed on businesses developing AI technologies.
Data centres will experience a rise in regulations this year as the world continues to manage rising energy and water consumption and the constant challenge of climate change. Increased pressure to meet customer demands has forced governments across all levels to focus on data centres and their excessive consumption of these resources. Data centres are estimated to account for nearly 3% of global electricity consumption and predicted to reach 4% by 2030. An average hyper scale data facility consumes between 20-50MW each year, the equivalent power required for 37,000 properties. This year we will see a rise in data privacy regulations and security and the implementation of new measures to manage the negative impacts of technology on our planet.
More and more personal information is being collected and stored by tech businesses. Industry experts anticipate governments worldwide to implement stricter regulations to protect customer data. As AI integrates further into the industry, governments will introduce new measures to ensure the accountability and transparency of new systems, requiring businesses to explain their AI processes and support them with a human-based process for selected decisions. More regulations will emerge as new technologies emerge to manage the negative impacts of technology, such as the impact on jobs. Industry experts predict a rise in measures to increase retraining and re-employment of people impacted by automation.
Security continues to be a top priority for IT professionals this year, despite the ongoing political volatility driving escalating energy prices and spiralling costs for IT products and services. The current geopolitical conditions will likely encourage further cyberattacks on all businesses. The IT industry must continue investing heavily in cyber resilience, including adding more defensive capabilities.
We have already witnessed a change in data privacy with some leading technology companies worldwide. The EU digital agenda represents a new era of privacy and antitrust laws. Improved regulation will make it easier for regulators to manage data privacy rules.
In 2023, we will likely witness tighter tech regulations around ESG reporting. Businesses can follow these measures if they have accurate and consistent data for ESG reporting. Data represent one of the most critical factors for delivering insights and measuring metrics related to ESG. With data assets being vital to achieving net-zero, businesses will need to create a platform of data integrity to ensure strategic decisions are based on assured ESG data. Businesses must invest in tech that combines data integration, data governance and quality.
Now, more than ever, organisations need trusted data to enable confidence in decision-making, setting structured targets and measuring the progress of green plans. By developing a data integrity strategy, businesses can rest assured they are making critical decisions based on information they can trust.