ICLG – Digital Business Laws and Regulations -
covers e-commerce regulations, data protection, cybersecurity,
cultural norms, brand enforcement, data centres and the cloud,
trade and customs and tax treatment and more.
1. Overview
The year 2025 marks a pivotal moment in the convergence of
technology and law. As rapid technological advancements and
shifting geopolitical landscapes reshape our world, legal
frameworks across the globe are striving to keep pace with these
dynamic changes. Amidst fragile economies, regulators are
increasingly urged to adopt more business-friendly approaches. In
this compelling chapter, we delve into the most significant legal
trends emerging in the tech sector and examine how businesses are
strategically responding to these evolving challenges. Join us as
we uncover the future of law and technology, and what it means for
the global business landscape.
2. AI
AI is starting to revolutionise many industries, and its legal
implications are profound. The concept of AI scaling law, where
typical AI model performance doubles every six months, is reshaping
the tech landscape. The arrival of Deepseek has turned the use of
generative AI on its head. This demands more efficiency and there
is an impetus to make algorithms, computer power and energy
consumption greener and more efficient. AI agents are beginning to
reshape the way that we transact online. These autonomous tools can
act on our behalf, making decisions and executing orders with
minimal human input. However, this requires guardrails to ensure
alignment between providers’ and users’ intentions. Legal
frameworks are adapting to ensure responsible AI development,
focusing on transparency, literacy, accountability, and ethical
considerations, yet the EU’s AI Act may prove to be too
restrictive and costly – no wonder the US and tech scale-ups
are synonymous. The UK government has published its AI
Opportunities Action Plan, outlining its strategy to harness AI for
economic growth, job creation, and improved public services, and is
consulting on regulating generative AI.
3. Quantum Computing and the Metaverse
Quantum computing develops, although its uses are not so clear.
According to Gartner, it may make most conventional asymmetric
cryptography unsafe, so cybersecurity measures will need to be
reviewed in detail. The Metaverse is now known as “spatial
computing”. It digitally enhances the physical world by
augmented (AR), extended (XR) and virtual reality (VR) technology.
It is being used in areas like training, workflows and
collaboration. Rather like AI, these technologies are throwing up
challenges in the areas of copyright and trade marks.
4. Data Privacy and Protection
With the increasing volume of data generated, data privacy and
cyber should remain a boardroom concern. In 2025, we see the
implementation of more stringent data privacy laws globally, while
legal challenges surrounding cross-border data transfers are
intensifying. In the UK, we are waiting for the Information
Commissioner’s final guidance on generative AI, while the
European Data Protection Board has published an interesting opinion
on data protection and AI. The Labour government’s Data (Use
and Access) Bill continues to pass through the parliamentary
process and, among other things, will align the regulatory regimes
for cookies and other storage technologies and direct marketing
with the UK GDPR. It also clarifies the rules around automated
decision making and the (re-)use of personal data for scientific
research. In addition, it includes provisions for digital
verification services and digital IDs.
5. Digital Platforms and Market Regulation
The digital markets competition provisions in the UK’s
Digital Markets, Competition and Consumers Act 2024 came into force
on 1 January 2025 and grant the CMA enhanced powers to regulate
digital markets. This includes designating firms with strategic
market status (SMS) and imposing tailored codes of conduct to
ensure fair competition. The CMA has already announced two SMS
investigations. Other regulators are also investigating big tech
companies, with the US acting against TikTok, and the European
Commission carrying out multiple investigations under the Digital
Markets Act and Digital Services Act. In addition, disinformation
is a big challenge, especially when platforms like Meta disband
their disinformation teams – we may see new tech aimed at
increasing trust. When it comes to online safety, many
jurisdictions have online safety laws, and platforms should be
thinking about how they can harness emerging tech to implement
secure and reliable age assurance mechanisms that prevent children
from encountering harmful content. Expect to see leaps and bounds
in the availability of technologies that drive efficient
“notice and takedowns”, which is likely to be achieved by
harnessing large language models (LLMs) for volume-focussed content
moderation capabilities.
6. Strengthening Cybersecurity Regulations
As cyber threats become more sophisticated, governments are
enacting stricter cybersecurity regulations. The Cybersecurity
Maturity Model Certification (CMMC) in the US and the Network and
Information Systems (NIS) Directive in the EU are examples of
regulatory efforts to enhance cybersecurity resilience. The
EU’s DORA (digital operational resilience for regulated
financial entities) has applied since the middle of January 2025.
The UK is consulting on proposed new laws to combat ransomware
attacks and has proposed a legislative regime for critical
third-party suppliers.
7. Fintech and Financial Regulations
Thankfully, regulatory sandboxes are becoming more prevalent,
allowing fintechs to test innovative products in a controlled
environment. The legal landscape for crypto and blockchain is
maturing. Countries are developing comprehensive regulatory
frameworks to address issues such as fraud, money laundering, and
consumer protection. Fintech will benefit from continued AI
adoption, especially in fraud prevention, yet operational
resilience and human oversight will remain critical.
8. Environmental and Climate Tech
The push for sustainability is driving the development of
climate tech, with legal frameworks supporting green innovation.
Governments are introducing regulations to promote renewable
energy, reduce carbon emissions, and encourage sustainable
practices. Environmental, Social, and Governance (ESG) compliance
is becoming a legal requirement for tech companies, even though
some have been stepping back from ESG activities. For example, in
the EU, regulations are being implemented to ensure that businesses
adhere to ESG standards, which is finally affecting investment
decisions and corporate strategies.
9. Healthtech: AI-driven Diagnostics and Personalised
Medicine
The health tech sector is poised for significant advancements in
2025, particularly in AI-driven diagnostics and personalised
medicine. AI algorithms will enhance diagnostic accuracy and speed,
enabling early detection of diseases and more effective treatment
plans. Wearable health tech devices will become more sophisticated,
providing continuous health monitoring and personalised health
insights, which may be able to detect illness at earlier stages.
The rise of AI in health tech brings several legal challenges.
Ensuring the accuracy and reliability of AI-driven diagnostics will
be key, raising questions about liability for errors. The use of
personal health data for AI training and personalised medicine will
require stringent data privacy and consent protocols, mainly due to
the processing of special category data.
10. Intellectual Property
Patent law is generally evolving to keep pace with technological
innovation. Reforms are being introduced to streamline the patent
application process and address challenges related to AI-generated
inventions – the rise of digital content is prompting changes
in copyright law. Legal frameworks are typically adapting to
protect creators’ rights while balancing the interests of
consumers and tech businesses. The UK government launched a
consultation late in 2024, seeking views on how to ensure the legal
framework in the UK for copyright and that AI can support both the
creative industries and the AI sector. Its opt-out proposals were
controversial, so we can expect to see some changes to the UK’s
original preferred approach.
Originally published by ICLG.
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
link