Why compliance can't be an afterthought in the AI age | MarTech

Marketers increasingly rely on AI to deliver deeper insights and personalized customer experiences, but AI effectiveness depends on high-quality customer data. Privacy regulations and the demise of third-party cookies make obtaining, storing, and using customer data responsibly more complex. Nearly half of U.S. states have enacted privacy laws with divergent consent standards, creating a fragmented compliance landscape. Businesses sometimes violate regulations through confusion, carelessness, or malice, including hiding opt-out pages and continuing targeted ads after opt-outs. Consumer trust is eroding: 86% of U.S. consumers cite privacy concerns and over half worry about AI mishandling data. Brands must operationalize data governance and transparency to reconcile personalization with privacy.

Marketers are racing to harness the power of AI to deliver deeper insights and more personalized customer experiences. But there's a catch: AI is only as good as the data you give it. In today's privacy-first world - where regulations are tightening and third-party cookies are vanishing - obtaining, storing and using customer data responsibly is more complex than ever. And the stakes are high.

This creates a fragmented compliance landscape that frustrates both businesses and consumers. Businesses are running afoul of regulations through confusion, carelessness and potential malice. A recent investigation uncovered at least 35 major data brokers using code to hide opt-out pages from search engines, while a Consumer Reports study found that many companies continue serving targeted ads even after opt-out requests.

We're seeing many examples of practices that erode consumer trust just as transparency and compliance are becoming business essentials. And the trust gap is real: surveys this year show that 86% of U.S. consumers are more concerned about data privacy than the state of the economy. While people value the personalization and efficiency that AI can bring, more than half say they worry about AI mishandling their data.

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