Transformative Trends in Data Law: AI Governance and Privacy Regulations Reshape Business Strategies

A recent report highlights that AI governance and heightened data privacy regulations are among the top data law trends transforming business strategies. The 2025 Data Law Trends Report outlines eight critical developments, emphasizing the need for companies to adapt to new regulatory frameworks.

 

According to the report, AI expertise is becoming crucial for corporate governance, with 13% of S&P 500 companies appointing directors skilled in AI. This figure rises to 30% among IT firms and 60% in the automotive sector. Comparatively, 18% of FTSE 100 companies now have at least one director with AI expertise. As governments, including those in the UK, US, Australia, Russia, and Japan, roll out policies to streamline AI regulations, Freshfields advises companies to prioritize accountability and transparency.

 

Freshfields partner Cat Greenwood-Smith commented: “While current AI-related lawsuits and investigations are based on existing laws, we anticipate a surge in cases once dedicated AI legislation takes effect.”

 

Stricter enforcement of data privacy is also a prominent trend. Giles Pratt, another Freshfields partner, noted that data regulators worldwide are focusing intently on AI, requiring businesses to ensure AI systems are compliant and to engage closely with regulators when necessary.

 

Data-related disputes are growing, particularly in the EU, where class action litigation is becoming more common. In the UK, while opt-out class actions for GDPR infringements have faced challenges post-Lloyd v Google, case law is still evolving. Similarly, the US is seeing a rise in class actions related to data breaches.

 

New global regulations, including the EU’s Digital Services Act and the UK’s Online Safety Act, are reshaping digital and data practices. Freshfields partner Rachael Annear remarked that the conversation around online safety is only just beginning and emerging technologies could shift expectations for online engagement.

 

Additional data law trends include a focus on international data transfers, escalating cyber threats, new US state consumer privacy laws, maturing data laws in Asia, and evolving data access rules in the EU. Freshfields emphasizes that these changes are not merely regulatory challenges; for proactive companies, they represent strategic opportunities to lead in the digital landscape.

 

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