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Three business professionals collaborating in a modern office, reviewing data on a computer screen. Their discussion highlights the importance of data privacy and security in workplace operations, ensuring compliance with evolving regulations.

AI, Compliance, and the Evolving Risk Landscape: What Firms Need to Know

In this exclusive Q&A, Introhive’s Director of Risk and Compliance, Evan English shares his insights on the biggest data privacy and security compliance risks on the horizon and how organizations can foster a culture of compliance that aligns teams around shared responsibilities. He also dives into the importance of proactive risk management, AI governance, and cross-functional collaboration to ensure compliance is seamlessly integrated into business operations.

Q: What are the risks in taking a reactive approach to data compliance management?

Evan: Organizations that take a reactive stance to compliance management often find themselves facing significant risks. Waiting until a security incident occurs before addressing compliance can lead to costly fines, reputational damage, and serious security breaches.

One of the most immediate consequences is financial. Addressing compliance issues after an incident typically involves fines and remediation costs, expenses that far exceed the cost of proactive compliance measures. Reputational damage is another critical factor. A compliance failure can result in negative publicity and a loss of customer trust, which can be even harder to recover from than financial losses. Along those same lines are the legal and regulatory risks. Many compliance failures can result in legal action and, in some cases, even criminal charges. 

Yet, often overlooked is the sheer operational disruption a reactive approach creates, regardless of the scale of the issue. Organizations caught off guard by compliance failures are forced to divert substantial resources to crisis management, pulling employees away from strategic initiatives and core business functions. Instead of focusing on innovation, growth, or improving customer experiences, teams end up scrambling to address compliance gaps, investigating security incidents, and implementing fixes. This “all-hands-on-deck” reaction disrupts workflows, increases stress, and drains productivity across multiple departments.

A delayed response may also expose organizations to security vulnerabilities, making them an easier target for cyberattacks or data breaches.

Q: How can organizations take a more proactive approach to data privacy and security compliance?

Evan: The key is integrating compliance into daily operations. A good starting point is conducting regular risk assessments to identify compliance gaps, spot emerging threats, and continuously refine security and privacy controls.

Organizations benefit from a well-structured compliance framework that clearly defines policies and procedures, ensuring compliance is not just a reactive measure, but an integral part of operations.

Real-time monitoring plays a crucial role in proactive compliance. By continuously monitoring, alerting, and reporting, organizations can detect compliance violations and security incidents early, before they escalate into costly breaches or regulatory penalties. Additionally,  employee training is another important piece of the puzzle, ensuring teams understand compliance requirements and best practices, it’s something we dive into more in the next section.

What really makes a difference, though, is collaboration. Compliance can’t sit in a silo; it has to be embedded across the organization. That’s why I’m a huge proponent of cross-functional governance teams. At Introhive, we have a council that brings together representatives from engineering, HR, legal, compliance, security, and executive leadership. This approach ensures that compliance is a shared responsibility that aligns with broader business goals. It also brings in diverse perspectives that help us anticipate challenges and refine strategies in ways that actually work for different teams. Without that kind of integration, compliance efforts risk being disconnected from the reality of daily operations.

Finally, compliance should be an ongoing effort. Regular internal and external audits provide valuable insights into what’s working and where improvements are needed. Instead of scrambling to fix issues under regulatory pressure, organizations that continuously refine their compliance programs stay ahead of risks and maintain stronger security postures over time.

Q: How can firms foster a culture of compliance that aligns diverse teams around shared responsibilities? What role does leadership play?

Evan: Leadership plays a huge role in shaping a culture of compliance. When executives make compliance a visible priority, it sets the tone for the entire organization. When employees see that commitment from the top down, compliance becomes a natural part of their work rather than just another obligation.

But fostering a strong compliance culture isn’t just about setting expectations; it’s about making compliance part of the way teams operate every day. That’s why compliance by design is so important. Instead of treating compliance as something to check off at the end of a process, organizations need to build it into their products, services, and internal workflows from the very start. That means ensuring compliance teams have the resources, authority, and strategic insight they need to guide decisions early on, rather than stepping in when an issue arises. It also means breaking down silos across legal, engineering, operations, security, HR, so that compliance isn’t just the responsibility of one team, but a shared effort that considers multiple perspectives.

Having clear goals and metrics also helps. When compliance efforts are measurable, they’re easier to track and refine. Regular communication, whether through meetings, updates, or internal announcements, keeps employees in the loop and reinforces the idea that compliance isn’t a one-time thing but an ongoing process.

One common pitfall is overcomplicating compliance policies. Simplifying them and minimizing legal jargon makes procedures more accessible and easier to follow. Clear, straightforward policies, combined with ongoing education on compliance requirements, security, and privacy best practices, help employees understand their obligations. A cross-functional team can also play a key role in assessing whether policies create unnecessary friction and making adjustments as needed.

Compliance by design also means regularly reviewing and improving compliance programs. Quarterly reviews with cross-functional teams help identify areas for improvement, while open feedback channels encourage employees to report concerns, security issues, or weaknesses before they escalate.

Q: What common weaknesses or blind spots do you see in data privacy and security compliance programs?

Evan: One of the biggest challenges is the lack of integration, and this goes back to compliance by design and having a cross-functional governance council. When compliance is treated as a separate function instead of being woven into core business processes, important requirements can easily be overlooked.

Another common issue is insufficient risk assessments. Many organizations don’t fully account for the unique risks that come with digital technologies like data breaches, cyberattacks, and privacy violations.

Outdated policies and procedures are another major blind spot. Compliance requirements are constantly evolving, and if policies aren’t reviewed regularly, at least annually, they can quickly become outdated. Employees need clear, up-to-date guidelines to follow, or they risk making decisions based on old or inaccurate information.

Many organizations also struggle with effectively managing third-party risks. Vendors often have access to sensitive data, making continuous due diligence and monitoring essential. Without strong oversight, companies can unknowingly expose themselves to compliance failures through their external partners.

Finally, data governance has become increasingly complex as companies deal with unprecedented amounts of data. With the rapid growth of cloud storage, AI-driven analytics, and global data sharing, organizations are handling more information than ever before. 

Adding to this complexity is the interconnected nature of systems and data flows which is something many organizations underestimate. Without a clear understanding of how data moves between systems, they risk security vulnerabilities, compliance gaps, and inefficient data management. Keeping track of where data is stored, who has access to it, and how it’s being used is a constant challenge. Without a strong approach to security, privacy, and retention, compliance quickly becomes unmanageable.

Q: What do you see as the most pressing risks in data privacy and security compliance for professional services firms in 2025 and beyond?

Evan: The most pressing concern that comes to mind is responsible data management within AI models. Firms need to ensure that the collection, storage, and processing of data used for AI is conducted responsibly and ethically while remaining compliant with customer contractual requirements, data protection regulations, and privacy laws.

Beyond basic data governance, firms also need to address the risks associated with AI, including data privacy concerns, unintended biases, and a lack of transparency in AI-driven decision-making. With regulations such as the EU’s AI Act increasing scrutiny in this area, AI governance has become a top compliance priority.

To stay ahead, organizations should develop AI governance frameworks that clearly define ethical principles, data governance policies, and model validation procedures. Security and privacy must also be integrated into AI deployments to minimize risk and ensure accountability. Additionally, firms should establish industry-standard guardrails to help prevent AI from generating outcomes that conflict with compliance or ethical standards.

Q: What key lessons can professional services firms apply to stay agile while navigating strict regulatory landscapes?

Evan: Beyond fostering a compliance-first culture and investing in employee training, firms need a proactive risk management approach, particularly when it comes to data governance. With AI and other digital transformations accelerating, data mapping is a crucial strategy. Having a clear understanding of where sensitive client data resides, how it is processed, and who has access to it not only aligns compliance efforts with regulations like GDPR and CCPA, but also enhances an organization’s ability to respond to security incidents effectively.

Finally, firms should establish strong compliance frameworks such as ISO 27001 and conduct regular third-party risk assessments. As regulatory landscapes evolve, staying agile will require a proactive approach—one that anticipates compliance risks rather than reacts to them. By embedding compliance into operations from the start, firms can maintain both agility and resilience in an increasingly complex environment.

Next steps 

AI is reshaping the future of professional services, bringing both opportunities and challenges. Explore Introhive’s CPO’s latest insights on AI’s evolving role in the industry.

As AI adoption grows, so do data privacy and security concerns. Introhive helps organizations stay ahead of regulatory changes and build strong compliance programs. Learn more about our role as data stewards, or book a demo with our team to see how we can support your compliance and security strategy.

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