Introducing new technology regulations is no simple matter. The operational impact for firms can be substantial, with compliance requiring changes in processes, systems, and resource allocation. For business leaders, the task is to balance these costs against the risks of non-compliance, while keeping a long-term view on efficiency.
Estimates from PwC suggest that global firms could spend up to $8 billion annually by 2025 just to ensure compliance with emerging data governance and AI regulations. Compliance costs are not only a financial burden but also bring operational challenges. For instance, deploying new technologies to meet regulatory standards—whether in cybersecurity, data privacy, or AI governance—often requires retraining staff, revisiting data management practices, and revising internal reporting structures.
An Accenture survey revealed that 73% of executives view regulatory changes as a top concern, with many predicting disruptions to business operations. However, these impacts can be mitigated. Some organisations are taking a proactive approach by embedding regulatory compliance into their digital transformation efforts, reducing duplication of effort and cutting costs by up to 25% over time.
The key is to plan for the ripple effects across their organisation—both immediate and long-term. Regulatory changes are often complex and require substantial resource commitments, but by implementing automated compliance tools and fostering a culture of compliance, the transition can be managed smoothly.
Leaders must evaluate the potential operational disruptions caused by new regulations and prepare cost-benefit analyses to determine the best path forward. Consider investing in compliance automation tools, which can reduce costs and ensure your organisation remains agile in the face of evolving requirements.
