Why we must embrace governance, privacy and security now
In a recent address to the European Parliament, President Ursula von der Leyen set the tone for 2025: “We have entered a new era of harsh geostrategic competition.” This shift is especially palpable in Canada, which finds itself facing mounting economic pressure from the Trump administration, including threats of crippling tariffs and a potential reversal of the Biden administration’s efforts to align with European Union AI regulations.
Recommended Videos
While much of the political discourse in Canada has focused on the impact of these tariffs on traditional sectors – manufacturing, agriculture and natural resources – the often-overlooked reality is that they will profoundly reshape how Canadian businesses handle their data.
In times of economic uncertainty, the instinct may be to put costly data governance, privacy and security initiatives on the back burner. However, for business leaders looking to future-proof their operations, now is not the time to retreat. Instead, these functions must be seen as strategic business enablers – key to unlocking operational resilience, securing competitive advantage, and ensuring long-term growth in new markets.
Regulatory standstill? Think again.
While Canada’s privacy modernization efforts have hit roadblocks, the global regulatory momentum is accelerating. Even with Trump’s repeal of Biden’s Executive Order on AI, the Trump administration has signaled it intends to proceed with some measure of AI guidelines, although it is unclear how closely those will resemble the first administration’s “American AI Initiative.” Nonetheless, Canadian and US companies that chose to operate in a growing list of jurisdictions, will still need to consider the convergence of international norms around data privacy, security and the safe use of AI.
Despite federal bills such as the Digital Charter Implementation Act (Bill C-27) and the Cyber Security Act (Bill C-26) being stalled, Canadian businesses cannot afford to wait. Provinces are progressing with their privacy and security legislation.
Quebec’s Act to modernize legislative provisions as regards the protection of personal information (Law 25) – ushered in September 2024 – sets a new benchmark for privacy compliance within Canada. This law introduces stringent requirements, hefty penalties and a clear push towards harmonization with global frameworks like the EU’s General Data Protection Regulation (GDPR).
Ontario recently passed the Strengthening Cyber Security and Building Trust in the Public Sector Act (Bill 194) which amends the Freedom of Information and Privacy Protection Act by introducing new requirements for public entities’ safeguarding of personal information (i.e. required development and implementation of security programs), expands the powers of the Information and Privacy Commissioner of Ontario (IPC), establishes requirements regarding the use of AI and enhances protection for children’s privacy.
Additionally, Albert and British Columbia contemplating amendments to their respective provincial private sector legislation. As provinces continue refining their respective privacy laws, it will introduce new compliance obligations for businesses engaging with those jurisdictions while also increasing the domestic pressure for a measure of harmonization with forthcoming federal privacy laws.
At the federal level, Canada will need to forge ahead with a replacement to the current Personal Information Protection and Electronic Documents Act (PIPEDA) in order to ensure a measure of legislative harmonization across Canada. It will also be important for the federal government to prioritize amendments to PIPEDA in order to maintain its adequacy standing with the EU’s GDPR and align with the privacy regimes of other jurisdictions such as the CARICOM, UK, India, Japan and Singapore.
Businesses that fail to act now may find themselves playing catch-up under increased regulatory scrutiny from forthcoming legislation and market pressures as businesses begin to diversify their client base beyond the U.S. Now more than ever, organizations must be able to pivot to new potential markets which will require them to demonstrate the ability to comply with a myriad of data handling requirements and supply chain risk management practices.
Expanding your business to include new technology and markets? Here’s why data governance should be your top priority
Looking to harness AI, expand your product and service offerings to new markets, or bid on critical infrastructure contracts? Forward-thinking businesses must align with the evolving regulatory trends shaping the global data governance landscape. Meeting these expectations is no longer optional – it’s a strategic necessity that can unlock new opportunities while mitigating risk.
Key priorities for businesses should include:
- Mapping your data ecosystem: Understanding where employee, customer, partner and organizational data resides – and where it is processed – is critical. Most organizations operate within a complex web of cloud service providers, making it increasingly challenging to ensure these vendors comply with jurisdictional privacy and security obligations. A clear data inventory and oversight framework are essential to maintain compliance and reduce exposure to regulatory risks. Businesses that invest in data governance today are better positioned to respond to regulatory changes, economic sanctions and shifting trade policies. A strong governance framework combined with a management system enables businesses to pivot with agility, seize opportunities in AI-driven markets and demonstrate compliance to international partners.
- Building trust through consent management: Leading with customer and employee trust requires centralized consent management and robust individual rights frameworks. Consumers and employees now expect enhanced capabilities to grant and withdraw consent with ease, along with greater control over their personal information through portability and access mechanisms.
- Strengthening third-party and supply chain security: In an interconnected world, businesses must conduct rigorous due diligence on third-party vendors and supply chain partners – particularly in critical sectors such as finance, telecommunications, transportation and energy. Proactively managing supplier compliance with privacy and security standards can prevent costly breaches and operational disruptions. Cyberattacks are an ever-present risk, particularly for sectors dealing with sensitive information. A strong data governance and security strategy provides the foundation for robust incident response, supply chain resilience and long-term business continuity.
- Ensuring oversight of automated decision-making and AI: As automated decision-making and AI adoption accelerate, organizations must prioritize algorithmic transparency and timely notifications regarding automated decision-making processes. Clear accountability measures help mitigate biases, enhance fairness, and ensure compliance with evolving regulatory frameworks. Companies that implement strong data governance frameworks can leverage AI with confidence, knowing their algorithms are built on accurate, secure and compliant datasets. Ethical AI adoption will become a key factor in regulatory approvals and customer acceptance alike.
These evolving expectations demand sustained investment in foundational data governance practices – long emphasized under Canada’s PIPEDA. However, many organizations continue to struggle with implementation due to resource constraints, siloed operations and a lack of strategic prioritization. Businesses that proactively address these challenges will not only achieve regulatory compliance but also gain a competitive edge in the digital economy – driving innovation, securing stakeholder trust and unlocking new growth opportunities.
Taking the first steps: from compliance to transformation
Embracing data governance as a strategic asset requires more than policy changes – it demands a cultural shift within organizations. Strong leadership is essential to champion a data-driven transformation that spans technology, people, processes and governance. For most organizations, achieving a baseline of operational data governance is a multi-year endeavor that must be adequately funded and continuously sustained to remain relevant and support evolving business needs.
Strategic data governance should align with privacy, security and IT objectives, ensuring that operational requirements from these functional areas are embedded into the broader strategic roadmap. A deep understanding of organizational data unlocks efficiencies in data management, enhancing business continuity, information management and asset management practices. Well-labeled, classified and “clean” data also strengthens AI and machine learning capabilities, driving better insights and operational efficiencies.
Clear data classification policies enhance security operations by enabling the implementation of rigorous data protection measures. In the event of an incident, such as a ransomware attack, accurate data classification allows for a precise assessment of the breach’s impact, facilitating informed decision-making and timely response.
Effective data governance ensures that personal information is managed responsibly, which is a fundamental prerequisite for privacy compliance. In turn, robust privacy practices build trust with consumers and regulatory bodies, laying a solid foundation for the ethical use of AI and fostering long-term business success.
The bottom line: invest now in data governance, privacy and security to maintain a competitive advantage
The accelerated adoption of AI, evolving global regulations and increasing geopolitical uncertainty all point to one undeniable truth: Data governance, security and privacy are no longer optional – they are foundational to business success.
Organizations that embrace this reality today will not only ensure compliance but will also position themselves as industry leaders, capable of leveraging AI ethically, strengthening customer trust and driving innovation in the digital age.
Those who hesitate risk falling behind – facing regulatory penalties, losing customer confidence, and missing out on the immense potential of a data-driven economy. For Canadian businesses, the choice is clear: lean into data governance, privacy and security risk management now, or risk being left behind.
