Predicting Global Trends for 2025: What Lies Ahead in Regulation and AI

6 minute read

January 2025

by Sandeep Bhide

Read our 2025 predictions for regulatory impacts, from ProcessUnity VP of Product Management Sandeep Bhide.

Reflecting on the dynamic shifts in the cybersecurity and third-party risk management landscape over last year, one thing is clear— the pace of change (and resulting implications on businesses) is accelerating. From the rise in sophisticated cyberattacks targeting supply chains to the increased scrutiny on global data privacy practices, 2024 proved to be a year that underscored the importance of adaptability and resilience. Organizations grappled with evolving compliance mandates, while advancements in artificial intelligence began to redefine how risks are identified and mitigated. And a new genre of risk – AI – came to fore!

As we look ahead to 2025, the challenges and opportunities are becoming clearer. Businesses must prepare to navigate an evolving regulatory environment, leverage emerging technologies, and stay ahead of global trends. Let us dive into key predictions and strategic insights to help your organization position itself for success in this rapidly changing landscape.

Major Regulatory Trends to Watch in 2025

Across the globe, third-party risk and cybersecurity teams face new and evolving regulatory changes with no commensurate increase in budget allocation. Teams must have a plan in place to ensure their organization is in compliance with regulations, whether new or existing requirements. Either way, you want to avoid disrupting the ongoing onboarding and due diligence work your team is already doing.

Below are some key areas I see having the biggest regulatory impact on third-party risk operations.

The United States: A Year of Deregulation

In the U.S., the regulatory landscape is expected to shift towards deregulation, particularly influenced by the new administration’s policies. This deregulation is predicted to impact a variety of sectors, but it is unlikely that new requirements will take their place.

Key areas likely to see a rollback or de-escalation include ESG, Life Sciences, Technology, and Financial Services. Environmental, Social, and Governance (ESG) is likely to see reduced emphasis on reporting and compliance mandates. In the life sciences sector, expect a relaxation in price control measures. In the technology sector you should anticipate more limited intervention in privacy and AI regulation.

Financial services companies are highly likely to see a reduction in enforcement actions and minimal regulatory developments in the cryptocurrency market.

However, one notable exception is labor policy, where there is likely to be an increased focus on immigration-related regulations or restrictions, which may impact businesses across various sectors.

Even though the compliance burden in the areas highlighted above is expected to lessen, third-party security teams should remain vigilant in their assessment processes and protection against cyber and vendor risk for their potential impact on operations. Companies should also continue to monitor changes in various US industries due to new legislation and governance.

Global Compliance: A Rising Burden

While U.S. regulations may ease, global compliance requirements are likely to continue to increase.

The European Union is expected to lead this charge, with heightened oversight in areas such as digital privacy, AI and ESG. This means an expansion in the scope and influence of GDPR. The enforcement of the EU AI Act will have significant implications for companies operating in Europe, and stricter sustainability and transparency requirements are expected in ESG regulations.

The European Union’s Digital Operational Resilience Act (DORA) also went into effect to start 2025 and is set to significantly impact European companies and those doing business with them. By enforcing stringent requirements on information and communication technology (ICT) risk management, resilience testing, and third-party risk management, DORA aims to enhance the operational resilience of financial entities.

Companies will need to establish robust ICT frameworks, continuous monitoring, and incident response plans. This means increased compliance costs and operational adjustments, especially for smaller firms. However, it also presents an opportunity for companies to strengthen their cybersecurity measures and build greater trust with clients and partners.

Other global regions are also expected to introduce or expand regulations. In the APAC region, there is likely to be a focus on data protection, i.e. in China and India, and ESG in East Asia. In Latin America, there will be increased anti-corruption efforts (especially in South America) and enhanced data privacy regulations. Cybersecurity remains a universal priority, with global enforcement around cyber-management rules growing.

Even if your business isn’t in a region where new regulations are going into effect, almost every business outsources work (goods, people, processes). This means that almost every business works with impacted vendors. There will undoubtedly be residual impacts on your vendor assessments and reporting timelines, so plan to work with your critical third parties.

Adapting Compliance Strategies for 2025

As regulatory demands evolve, third-party risk teams must adapt their compliance strategies to remain competitive and secure. Companies should:

  • Prioritize Proactivity: This means establishing mechanisms to anticipate and address regulatory changes before they become critical issues, including adopting predictive technology.
  • Invest in Technology: Leverage advanced compliance tools to streamline processes and reduce costs, helping maintain positive relationships with already stressed vendors.
  • Cultivate a Compliance Culture: Foster awareness and accountability across all levels of your organization, regardless of whether your industry is impacted by new or loosening regulations.
  • Focus on Risk Management: Ensure compliance initiatives are tightly integrated with broader risk management strategies, including part of your onboarding questionnaires and due diligence efforts.

Compliance: A Challenge, and an Opportunity

On the surface, new compliance standards are expected to result in stress for third-party risk teams that are already facing resource constraints, shorter periods to onboard new vendors, and many moving parts and impatient stakeholders. There is truth behind the stress of new regulatory requirements; new questionnaires, security controls, or assessment requirements mean change for your team, and change for your customers.

While compliance adds challenges, it also presents opportunities for third-party risk teams. Companies that invest in efficient compliance processes in 2025 can:

  1. Enhance security by mitigating risks associated with breaches and regulatory actions.
  2. Reduce costs linked to non-compliance, breaches and exploited vulnerabilities.
  3. Gain a competitive advantage by demonstrating robust governance and risk management practices.

These proactive compliance efforts can foster stronger relationships with regulators and stakeholders, as companies that are seen as leaders in compliance are more likely to earn the trust and confidence of these groups, as well as with their partners and customers.

A robust compliance framework can also improve organizational resilience. Companies that can quickly adapt to regulatory changes are better positioned to navigate uncertainties and disruptions, ensuring continuity and stability in their operations. This resilience is invaluable in a rapidly evolving global business environment.

The Role of AI in 2025 Compliance

AI continues to reshape industries, and compliance is no exception. However, the regulatory outlook for AI in 2025 is mixed:

  • New Regulations: While the EU will begin enforcing the AI Act, other regions are unlikely to introduce significant new AI regulations, at least not in 2025. However, enforcement complexities, high compliance costs, and inconsistent risk classifications in the EU could pose challenges.
  • Innovation vs. Regulation: There is a risk of overregulation stifling innovation, particularly in regions with stringent AI laws. Companies must balance compliance with the need to innovate.

In addition to these challenges, the mixed regulatory landscape can also create opportunities for companies to differentiate themselves through compliance excellence. Companies that proactively adopt best practices in AI governance, ethics, and transparency can build a competitive edge by gaining trust from customers, investors, and partners. Organizations can position themselves as leaders in responsible AI use, potentially attracting new business opportunities and fostering stronger industry collaborations.

Looking Ahead

As the regulatory landscape evolves, businesses must stay informed and agile. By investing in technology, fostering a culture of compliance, and adopting proactive strategies, organizations can navigate these challenges and turn compliance into a strategic advantage. With 2025 upon us the key to success lies in preparation and adaptability.

For more insights from ProcessUnity on 2025 trends, as well as complying with new and evolving regulations, you can meet with our team today.

See more resources available in the ProcessUnity resource center.

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About Us

ProcessUnity is a leading provider of cloud-based applications for risk and compliance management. The company’s software as a service (SaaS) platform gives organizations the control to assess, measure, and mitigate risk and to ensure the optimal performance of key business processes. ProcessUnity’s flagship solution, ProcessUnity Vendor Risk Management, protects companies and their brands by reducing risks from third-party vendors and suppliers. ProcessUnity helps customers effectively and efficiently assess and monitor both new and existing vendors – from initial due diligence and onboarding through termination. Headquartered outside of Boston, Massachusetts, ProcessUnity is used by the world’s leading financial service firms and commercial enterprises. For more information, visit www.processunity.com.