In this blog, we continue the discussion from our previous article on GDPR and AI Regulation, where you can read about escalating GDPR fines, practical strategies on how organizations can adapt and how 4CRisk products can help manage compliance with these regulations. Here we cover the recent LinkedIn compliance penalty, and focus on how organizations can minimize the operational stresses of these regulations by simplifying and harmonizing their risk and compliance requirements, specifically AI and Data Custody (data usage and protection) and AI governance (AI systems usage; how teams utilize, develop, or leverage via a third party, any AI or data management tools).
General Data Protection Regulation (GDPR) - Data protection has become more important than ever for organizations with any kind of operations connected to the EU. The already well-established GDPR, which seeks to protect the personal data and privacy of individuals within the EU, as well as to standardize data protection practices across member states, is already over a half-decade old and has only grown more robust with the evolution of AI and data integration into fundamental business operations. The GDPR applies to any organization—regardless of location—that processes the personal data of EU residents, which gives it a significant global impact across an increasingly globalized supply chain.
The EU Artificial Intelligence ACT regulatory framework adds an additional layer of complexity, overlapping with the GDPR. It aims to regulate the development, commercialization, and use of artificial intelligence (AI) systems within the European Union, with a focus on protecting fundamental rights, ensuring safety, and promoting ethical AI innovation. The AI Act is the first law of its kind globally and complements the GDPR by addressing AI-specific challenges. These two regulations overlap heavily in the areas of data usage and protection and have far reaching implications not only for organizations with any data tracing back to the EU, but also how teams utilize, develop, or leverage via a third party, any AI or data management tools.
If you thought GDPR compliance was just a box-ticking exercise, LinkedIn’s recent €310 million penalty might make you think again. The Irish Data Protection Commission (DPC) issued this hefty fine after a long-running investigation into LinkedIn Ireland Unlimited Company’s data practices. What started as a complaint from the French non-profit La Quadrature Du Net in 2018 escalated into a full-blown inquiry by the DPC, highlighting just how serious regulators are about enforcing GDPR standards.
The investigation drilled into how LinkedIn handles user data, particularly regarding transparency and fairness—two foundational GDPR principles that are easy to overlook but critical to get right. LinkedIn’s practices around behavioral analysis and targeted advertising came under the microscope, with the DPC finding that the platform’s reliance on user consent and other legal justifications for data processing simply didn’t cut it. In other words, LinkedIn’s attempts at “business as usual” were deemed insufficient under GDPR’s stringent rules.
DPC Deputy Commissioner Graham Doyle summed up the issue well, noting that “processing personal data without an appropriate legal basis is a clear and serious violation of a data subject’s fundamental right to data protection.” LinkedIn’s fine is a clear signal: regulators are watching, and they’re not holding back when it comes to enforcing compliance.
For any company handling user data, the message is clear—prioritize transparency, fairness, and robust data management practices, or risk hefty penalties. With regulators tightening the reins on data processing, AI-driven tools are becoming more essential than ever to manage compliance complexities and ensure that data handling practices meet GDPR’s high standards.
The introduction of regulations like the GDPR and AI Act adds significant complexity to the compliance process. These regulations require organizations to implement stringent data protection measures, conduct thorough assessments of AI systems, and maintain rigorous transparency and oversight mechanisms, all while managing existing business operations. This results in several key challenges:
Key takeaway: The evolving regulatory landscape demands a proactive and adaptable approach to compliance. Organizations must invest in resources, technology, and training to navigate the complexities, mitigate risks, and ensure ongoing compliance with the latest regulations.
Organizations can avoid the increasing need to allocate more resources towards compliance efforts through the thoughtful use of AI to simplify, speed and harmonize efforts. To do so, organizations must adopt an increasingly agile and holistic view of AI and data custody efforts. They must ensure systems are not only designed to meet regulatory obligations, but to evolve with the changing landscape and to conform to emerging technologies and opportunities.
To help develop specialized knowledge in both data protection and AI regulations, AI-powered compliance products from 4CRisk.ai can reduce costs dramatically while increasing the knowledge and expertise of compliance professionals. Advances in process mapping, data analytics, and transparent reporting empowered with AI tools can help organizations build and maintain holistic and agile systems that create opportunity amidst the uncertainty of regulatory change and rapidly evolving global conditions.
Here are 4 core processes that, with AI, can increase accuracy and speed efforts by up to 50 times faster than current manual methods.
The GDPR and AI Act are setting the standard for data protection and artificial intelligence worldwide. These regulations are encouraging countries to adopt stronger privacy laws to make international business easier and better protect people's rights. Since GDPR applies to companies even outside the EU, many businesses are adopting its principles to ensure they can still serve European customers.
By using AI-powered tools for risk and compliance, organizations can not only meet these new standards but also make their compliance programs more efficient, effective, and valuable.
About 4CRisk.ai Products: Our AI products use language models specifically trained for risk, compliance and regulatory domains to automate manual, effort-intensive tasks of risk and compliance professionals, providing results in minutes rather than days; up to 50 times faster than manual methods.
Would you like a walkthrough to see what 4CRisk products can do for your organization? Contactus@4crisk.ai or click here to register for a demo.
4CRisk products: Regulatory Research, Compliance Map, Regulatory Change Management and Ask ARIA Co-Pilot are revolutionizing how organizations connect regulations with their business requirements.
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