With 2025 swiftly approaching, business leaders are preparing for significant regulatory changes that could reshape their operation. According to PwC’s October 2024 survey, 76% of CEOs report that regulatory concerns weigh heavily on their decision-making. Many executives also believe that increased regulations are inevitable, regardless of the upcoming election outcome, reinforcing the importance of proactive compliance strategies. Below are key areas where regulatory and compliance changes are expected to have the greatest impact in 2025:
Data Privacy and Evolving Regulations
Data privacy frameworks will remain a focal point in 2025. New state regulations, modeled after the California Consumer Privacy Act (CCPA) and the New York SHIELD Act, mandate stricter data governance and transparency in data handling. Additionally, The FTC’s click-to-cancel rule, expected to take effect in early 2025, adds another layer of compliance by requiring companies to streamline subscription cancellations and renewals. Businesses will need to upgrade their data management protocols, ensuring compliance with both state and federal standards to maintain customer trust and avoid penalties.
AI Regulation and Technology Oversight
AI investments will remain a strategic priority, with over 90% of CEOs stating they will increase or maintain spending on AI technologies despite potential regulatory changes. The European AI Act and emerging U.S. regulations reflect growing concerns over AI ethics, bias, and misuse. Companies must adopt compliance frameworks that address these risks while leveraging AI for operational efficiency. Businesses that proactively manage AI-related risks will not only comply with new standards but also gain a competitive advantage in the marketplace.
Operational Resilience and ESG Reporting Requirements
Operational resilience will also be a key regulatory focus in 2025. Businesses need to enhance their crisis management frameworks to address risks ranging from climate-related disruptions to supply chain challenges. Additionally, Environmental, Social, and Governance (ESG) reporting will become mandatory for many organizations, following new global disclosure standards. By integrating ESG metrics into their annual reports, business leaders can align with these evolving standards and improve their stakeholder transparency.
Seizing Opportunities Amid Regulatory Change
While new regulations may pose challenges, they also offer opportunities for forward-thinking businesses. Jim Schleckser, CEO of The CEO Project, argues that companies capable of rapid adaptation can outmaneuver competitors by treating compliance as a strategic advantage. The FTC’s click-to-cancel rule, for example, will reward businesses that adopt customer-friendly practices early, enhancing customer loyalty and brand reputation. Schleckser likens this approach to steering a speedboat—those who act quickly will gain the upper hand in turbulent regulatory waters.
C-suite leaders must also engage with lawmakers and regulatory bodies to stay ahead of new rules. Building relationships with policymakers and participating in industry advocacy efforts can help businesses shape future regulations and reduce compliance risks.
In 2025, regulatory change will test the agility and resilience of businesses. Companies that view compliance as an opportunity rather than a burden will thrive. Whether adapting to AI regulations, privacy mandates, or ESG reporting requirements, executives who stay proactive will gain a competitive edge. Leaders in the C-suite must foster a culture of innovation and flexibility, enabling their organizations to navigate the evolving regulatory landscape confidently and emerge stronger.
Resources: PWC, CEO Latest findings from PwC’s Pulse Survey, INC 500, Government Regulations Can Help Your Business. Here’s Why Reacting with speed in a changing environment is a competitive advantage., CEO NA, Consumers set to save millions with new ‘click to cancel’ rule, KPMG, Regulatory Insights, Amstelveen, Key Compliance and Regulatory Themes for 2025, SecurityPal, Regulatory and Compliance Challenges in InfoSec: A U.S. Forecast for 2024-25
