As we approach 2026, the landscape of privacy and cybersecurity laws continues to evolve, presenting significant challenges for enterprises. The complexity of compliance is exacerbated by the rapid pace of change in laws and regulations, particularly in the wake of advancements in artificial intelligence (AI). Companies are grappling with understanding which laws apply to their operations amidst growing third-party risks and new data collection challenges.
A key focus moving into 2026 is the compliance with updated laws from the previous year, including the Department of Justice's new Data Security Program and amendments to existing regulations like the Children's Online Privacy Protection Act (COPPA) and the Health Insurance Portability and Accountability Act (HIPAA). These changes reflect a decade of evolving data protection priorities but also indicate that organizations will continue to struggle with compliance.
David Saunders, a privacy and cybersecurity partner, noted the challenges posed by the rapid evolution of regulations, stating, "It's hard to expect compliance from companies when it's constantly changing. At some point, it has a deterrent effect on compliance." Looking ahead, a comprehensive compliance strategy will likely require significant resources from businesses as they work to adhere to laws that are still being finalized.
What's on the Docket for 2026?
In 2026, enterprises will need to navigate several critical legal updates. Key areas of focus include minimum age requirements for applications, expanded data privacy mandates, and regulations governing AI usage in human resources. These priorities reflect concerns about data privacy and protection, especially as states implement their own laws.
One notable legal development is the ongoing concern regarding age verification for apps. New state regulations mandate that app stores and developers verify the ages of users during downloads and purchases. Recent legal battles over similar laws in Texas and Louisiana have left companies uncertain about compliance requirements. With API documentation released by major companies like Apple and Google, developers are under pressure to modify their applications to comply with these evolving standards.
Companies that rely on advertising revenue are particularly impacted by these age verification laws, as they must classify products according to age limits. The lack of clarity and sudden legal changes have caused many organizations to scramble to implement necessary adjustments.
More to Come
In addition to age verification, new California Consumer Privacy Act (CCPA) requirements will pose additional challenges. While some provisions are already in effect, mandatory cyber-risk audits and enhanced requirements for handling sensitive information will take effect next year. Companies must begin preparations now to meet these regulations.
Another significant focus for 2026 will be the regulation of AI in human resources. As organizations increasingly utilize AI for tasks such as resume screening and candidate evaluation, concerns regarding bias and discrimination have grown. Several states, including Illinois, have already enacted laws addressing these concerns, prompting companies to reassess their AI practices.
Federal vs. State Regulations
The regulatory environment at the federal level remains uncertain as we move into 2026. Observers note the inconsistency in cybersecurity policies under the previous administration, which has resulted in a lack of clear direction. As a result, many anticipate that state enforcement will become more prominent, filling the void left by federal inaction.
According to Ahn, a partner specializing in data and privacy law, the expectation is that state attorneys general will take a more active role in enforcement, especially as federal regulations falter. This shift may lead to a patchwork of compliance requirements that complicate matters for organizations operating across multiple jurisdictions.
Expect the Unexpected in 2026
As companies prepare for 2026, one of the main challenges will be determining which laws apply to their specific activities. The complexity of varying state definitions and regulations makes it difficult to achieve full compliance. Saunders emphasizes, "The fun thing about privacy in my world is there's going to be something this year that I didn't expect." He advises organizations to stay informed about new laws and compliance standards, focusing on the most significant risks that may require substantial investment.
Ultimately, companies must adopt a proactive approach to compliance, ensuring that they are prepared for the unexpected challenges that lie ahead in the rapidly changing landscape of privacy and cybersecurity law.
Source: Dark Reading News