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Technology companies are entering a new phase of regulation, and many probably aren’t prepared yet. Shaped during an era of growth and limited government oversight, these companies historically viewed new regulations as an occasional distraction that’s handled, often ad hoc, by their compliance and legal teams. Back then, the volume of regulatory change was manageable and there wasn’t a pressing need to build a formalized approach to regulatory response and readiness.
As we enter 2025, that’s all about to change. A new wave of global tech regulations and standards is taking hold and expanding in the European Union, United Kingdom, India, South Korea, Canada and elsewhere. Domestically, the states are racing to enact new laws governing AI, privacy and content moderation. The Justice Department recently issued a final rule to prevent foreign adversaries from accessing Americans’ bulk sensitive personal data. And the Trump administration, despite its deregulatory posture overall, has signaled an appetite for new oversight on questions of Section 230 liability, content moderation, AI, immigration and trade with foreign rivals.
In this environment, the industry’s long-standing, reactive approach to compliance is no longer viable. Responding to regulations only after they’re issued may have worked in the past, but it’s become too costly, inefficient and risky with today’s emerging, often overlapping rules. Risk, compliance and legal teams at tech companies should accept this reality and face it head-on, learning from other sectors and building a fit-for-purpose compliance infrastructure. This shift calls for adopting an agile compliance model that integrates regulatory readiness across strategy, products and operations.
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