One of the defining characteristics of the 21st century is its dynamic and ever-changing nature. As we move through the year, various trends emerge that shape and influence the direction of different industries. One area that has been greatly impacted by technology is data privacy. As we enter into the next phase of the data-driven world, businesses are increasingly facing the consequences of data breaches and must navigate the complex landscape of data protection. In this context, it is important to understand the key trends that are likely to shape the data privacy landscape in 2023. 

Watch out for these 10 data privacy trends that India will encounter in 2023:

• 1) The rise in data privacy regulations: The increasing prevalence of data privacy regulations is one trend that is expected to shape the market in 2023. Governments around the world are introducing new laws and regulations aimed at protecting the personal data of individuals. One example of this is the proposed Digital Personal Data Protection (DPDP) Bill 2022 in India, which is set to come into force this year. This Bill promises to introduce several laws to better manage the cyber-tech field and serves as a guide for addressing various issues related to data privacy in India.
• 2) Improved Transparency on Data Collection: Another trend that is expected to shape the data privacy market in 2023 is the improved transparency on data collection. As consumers become more aware of the value of their personal data and the potential risks of data breaches, they are becoming increasingly demanding in terms of the level of transparency they expect from businesses. The new DPDP Bill will help to promote transparency by requiring businesses to provide clear and concise information about their data collection practices, including the types of data they collect and the purpose for which it will be used. As a result, businesses that are transparent about their data collection practices will likely see an increase in active users and earnings compared to their rivals.
• 3) Stricter fines on data breaches: The newly proposed Digital Data Protection Bill of 2022 aims to enhance the protection of individuals' data by imposing substantial penalties on corporations in the event of data breaches. The Bill proposes fines of up to INR 250 crores for companies that fail to report or adequately handle such breaches, thereby reinforcing the importance of data security.
• 4) Privacy technologies will reign in the corporate world: In 2023, it is expected that companies will increase their spending on privacy technology and compliance in order to gain customer trust and avoid penalties. As a new privacy legislation is being implemented, companies will invest more in technology to secure and protect customer data. According to a PwC report, 82% of corporate leaders anticipate increasing their cybersecurity budgets in 2023 to address the evolving threat landscape.[i]
• 5) Edge Computing: Edge computing is a developing trend in cloud computing that allows data processing at the edge of the network, near the source of data, rather than in a centralised data centre. It offers several advantages for data security, including reducing the amount of bandwidth needed for data storage and lower costs. With the rollout of 5G internet in India, edge computing is expected to become even more popular as the faster network speeds and lower latency of 5G will enhance the capabilities of edge computing.
• 6) Automation of Data: Automation of data is becoming a significant trend in technology for 2023. By reducing the need for human involvement, automation aims to decrease the time and costs associated with repetitive data analytics tasks. Additionally, automation can increase the accuracy and consistency of trend analysis and the insights that follow. A recent IDC APJ Automation Survey 2022 found that 84% of Indian firms plan to increase their use of robotic process automation (RPA) or plan to implement RPA enterprise-wide by 2025.[ii]
• 7) Say no to cookies: The use of cookies, particularly third-party cookies, is expected to decrease in the near future as more companies focus on using first-party data and as consumers become more aware of their personal data privacy. In line with this trend, Google has announced that it will stop supporting third-party cookies on the Chrome browser by the end of 2023. This move will likely impact the way companies track and target users online, and may lead to the development of new technologies for user identification and tracking.
• 8) AI in Cybersecurity: AI in cybersecurity is becoming an increasingly important trend as it allows for the real-time examination of large amounts of data and the identification of threat patterns through the use of machine learning algorithms. These capabilities are considered more effective than those of humans alone. As a result, AI-based cybersecurity technology is no longer seen as a luxury but as a necessary investment for companies to protect themselves from cyber threats. With the increasing number of cyber attacks happening, it is becoming more important for companies to use AI-based technologies to defend their networks and systems.
• 9) Employment Opportunities in the field of Data Security and Privacy: In 2023, there is expected to be an increase in employment opportunities in the field of data security and privacy as a result of evolving privacy regulations. This debunks the notion that advancements in data science and artificial intelligence would lead to a decrease in the need for human labour. As companies prioritise data security and privacy, there is a growing demand for specialised skills in these areas, such as data security specialists and privacy experts. This trend is likely to continue as companies look to comply with new regulations and protect sensitive information from cyber threats.
• 10) Sustainable Tech is the New Future: In 2023, sustainable technology is becoming more important as more companies are becoming aware of their impact on the environment and are looking to adopt more environmentally-friendly practices as part of their corporate social responsibility (CSR) efforts. Companies like Apple are leading the way by implementing methods of renewable energy, reducing waste, and building more sustainable practices in their technology. In India, the installation of green energy capacity is increasing, with 111.39 GW in FY 2022 and a goal to reach 287.34 GW by FY 2027. [iii] As concerns about climate change and the environment continue to grow, sustainable technology is likely to become even more important for businesses in the future.

Conclusion:

In conclusion, businesses must re-evaluate their approach to data-driven advantages in light of the rapidly evolving legal and technological landscape. The implementation of stricter laws and regulations regarding data privacy and security is inevitable, and companies that are able to demonstrate their commitment to these trends will be well-positioned to attract customers and increase revenue. By staying informed and investing in the latest privacy-enhancing technologies, businesses can ensure they are prepared to meet the challenges of the future. In addition, at Rainmaker, we stay updated on the latest trends and changes in the field of data privacy and security. We assist our clients in building a strong digital hygiene by staying ahead of the curve and analysing these trends. If you are interested in learning more about our services, please contact us to discover how we can help you protect your customers' data and comply with the latest regulations.

Author: Vidhi Krishali, Research Associate, Law, Rainmaker Directions and Contributions: Akanksha Arora, AVP-Legal, Rainmaker  

References: [i]https://www.pwc.in/press-releases/2022/over-82-of-business-executives-in-india-foresee-an-increase-in-cybersecurity-budgets-in-2023-pwc-survey.html [ii]https://www.uipath.com/newsroom/uipath-survey-apj-scale-up-enterprise-wide-automation [iii]https://www.researchandmarkets.com/reports/5690658/renewable-energy-market-in-india-2022-2027 

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