The Daunting Task For Legal Teams To Adapt to Data-Driven Business Models in 2023
The new EU legislation will aim to facilitate data sharing, improve freedom of access to data and create European Data Spaces for sector-specific data. These changes will have a global impact, as anyone doing business in the EU will need to comply. Other regions such as India and China are also developing new data regulations. A report by Osborne Clarke evaluates whether lawyers in Europe are equipped for this change.
Legal teams in the corporate setting will face a challenge to adapt data-driven business models and manage more complex data and digital regulation. In partnership with Osborne Clarke, the European Company Lawyers Association surveyed over 400 General Counsel across Europe (including the UK and non-EU countries) to find out whether in-house lawyers are ready for this change.
Sighting the Challenge:
- Lack of access to external data is a key obstacle for 33% of respondents; 56% said accessing real time data is important.
- To support innovations such as machine learning and artificial intelligence (AI), policymakers aim to improve access to data.
- Four in ten (40%) businesses intend to increase their use of AI.
- Currently, 24% of businesses take an open approach to data while 27% treat it as proprietary. The new EU data rules will make it harder to maintain a proprietary approach.
- At present, often data access rights are governed by contractual provisions and only 13% of businesses have been in a data dispute. In-house legal teams can expect more disputes to arise with the expansion of data regulation.
- Lawyers say existing EU regulation is confusing (63%) and too complex (68%).
- 28% said their company was well prepared for data-driven business models.
- Almost one quarter (23%) think the regulatory framework for data-driven business models is stable, suggesting a lack of knowledge about the coming changes.
What can lawyers do to prepare for the big change?
The expansion of EU data regulation will have many practical implications for in-house legal teams. The new data landscape will be complex, with a wider scope, but will also create new opportunities. Lawyers will play a vital role in developing new data-driven business models.
What are the opportunities offered by the new EU legislation, and what are the key issues to consider?
Predicted Timeline for Compliance