The Importance of Consent and Preference Management for Today's Organizations

In today's rapidly evolving digital landscape, consent and preference management are no longer just regulatory requirements—they're essential components of any organization's strategy. Whether you're a legal professional, data privacy officer, marketer, or IT expert, understanding the nuances of consent management is crucial. Recent discussions, such as the insightful webinar hosted by IAPP on this very topic, highlight the shifting priorities for organizations worldwide, particularly in the era of AI model development. Here, we'll summarize key takeaways and lessons from a recent webinar featuring Fahad Diwan, JD, FIP, CIPP/M, CIPP/C, Director of Privacy & Data Governance Products, Exterro; Goli Mahdavi, CIPP-US/E, Counsel, Data Privacy and Cybersecurity, Bryan Cave Leighton Paisner (BCLP); and Cristina Messerschmidt, Associate - Data Privacy & Security, Baker McKenzie to help you understand why consent management is more important than ever.

Understanding Consent in the Age of AI

Consent management has always been vital, but the rise of AI technologies has elevated its importance. AI models rely heavily on data to function effectively. This dependency can raise significant privacy concerns if not managed properly. The webinar emphasized that AI is now one of the most important assets for businesses, driving insights and generating value from vast data sets. Therefore, obtaining valid consent is not just about compliance; it's about building trust and ensuring ethical AI practices.

The Legal Landscape

The session provided a comprehensive overview of the legal landscape surrounding consent and AI in both the United States and the European Union. Key points included:

• United States: With numerous state-level privacy laws, like those in California and Colorado, organizations must obtain explicit consent for secondary uses of data. This means any use beyond what was initially disclosed requires fresh consent. The FTC has been clear in its guidance that companies must be transparent and that retroactive changes to privacy policies are insufficient.
• European Union: The EU AI Act introduces a risk-based approach to AI regulation, categorizing AI applications by their potential impact on human rights. High-risk applications require rigorous assessments and explicit consent for certain types of data processing.

Best Practices for Obtaining Consent

The webinar highlighted several best practices for effectively managing consent:

1. Implement a Consent Management Solution: This is essential for organizing and tracking consent across multiple data collection channels, ensuring compliance with diverse laws and regulations.
2. Transparency and Communication: Clearly communicate how data will be used beyond the initial transaction, especially if new AI technologies are involved.
3. Universal Consent Management: Ensure consent preferences are synchronized across all platforms and devices to enhance user experience and maintain trust.
4. Detailed Documentation: Maintain comprehensive records of all consents, including the context in which they were given and any subsequent changes.

Real-World Applications and Examples

Beyond theoretical aspects, the webinar offered practical applications and real-world examples of how businesses effectively manage consent:

• Companies are using AI-driven consent management tools to automate the consent process, reducing manual errors and ensuring compliance.
• Organizations have streamlined their privacy practices by integrating consent management with their records of processing activities, thus mitigating risks associated with data mismanagement.

Conclusion

Consent and preference management play a pivotal role in today's digital economy. For organizations looking to leverage AI responsibly and ensure compliance, understanding and implementing robust consent management practices is non-negotiable.

Are you ready to take your organization's consent management to the next level? Discover how our Consent and Preference Management solution can transform your operations and help maintain customer trust. Schedule a demo today to explore our comprehensive offerings and see how we can support your privacy strategy.