ANALYSIS

Digital governance in 2026: Entropy and regulatory complexity

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Contributors:

Brandon LaLonde

CIPM

Research & Insights Analyst

IAPP

Editor's note

Take part in this year's IAPP Governance Survey to share your experience and receive actionable insights you can use in your day-to-day role.

This year's survey looks at privacy governance, compliance strategies, AI governance and broader digital governance. It spans industries and geographies, explores technological trends and innovations, and weighs the effects of economic headwinds.

As the digital landscape shifts into a more complex, interconnected and dynamic regulated era, the IAPP is calling on the global community to participate in the 2026 IAPP Governance Survey.

This is not merely a call for data points. We urge you to take the survey because the specific issues of digital governance, cross-border dataflows and AI risk management have reached a critical inflection point. Policymakers worldwide are currently drafting and debating the rules that will govern the next decade of innovation. Organizations need to be prepared to react accordingly.

Why this is important

In 2024, the IAPP introduced the concept of "digital entropy" — the natural state of chaos that emerges when technology outpaces the frameworks designed to manage it. This entropy has only intensified since then. The organizational silos that once separated domains like privacy, cybersecurity, AI, ethics and legal compliance have effectively collapsed.

Today, digital governance — in its many forms — is the overarching discipline required by organizations to navigate this landscape. Organizations are now grappling with responsibilities. As geopolitical tensions rise, the idea of trustworthy free flow data access is under threat by increasing data localization requirements. With multiple international digital laws in effect and a surge of sovereign data laws, the cost of noncompliance may have a catastrophic impact. As organizations rely more on third-party AI and cloud providers, the compliance gap in the supply chain has become a primary vulnerability and some organizations may need to reevaluate their approach.

Beyond benchmarking

While the survey results will help benchmark your team's budget, available resourcing and perceived digital risk landscape against your peers, the survey also vitally serves an essential role in guiding policy instruction.

The IAPP has developed questions in conjunction with the Organisation for Economic Co-operation and Development that will inform international digital policy development, giving organizations an opportunity to share their experiences in dealing with increasingly complex regulation and varying standards and frameworks. 

The IAPP has also developed questions alongside the PostGenAI@Paris consortium that deal with AI governance risks and rewards. Policymakers are currently looking into these specific areas, too. From Brussels to Downing Street, New Delhi to the state capitals of the U.S., there is an active debate on how to balance technological innovation with consumer safety.

IAPP research has found that only 31% of organizations are strongly confident in their organization's ability to stay informed about and comply with applicable digital law and policy initiatives. By participating, you help move that needle while also shaping the future of digital policy.

Take the survey

These topics are some of the most important and pressing issues digital governance professionals will face this upcoming year. Take the survey today. 

Contributors:

Brandon LaLonde

CIPM

Research & Insights Analyst

IAPP

Tags:

BenchmarkingData securityAI governancePrivacy

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