Regulations Unable to Keep Pace with Disruptive Business Models: Deloitte India
Grow Your Business, Not Your Inbox
You're reading Entrepreneur India, an international franchise of Entrepreneur Media.
The future of work and data security is going to be strongly affected by technological innovations and disruptions. According to the report Through The Risk Lens by Deloitte India, artificial intelligence (AI) will displace 40 per cent of the world’s current tasks, and similar disruptors will help create 1.75 million technology-enabled jobs.
The report further states that 55 per cent of the Indian workforce will require reskilling by 2022 and by 2025, 20 per cent of the workforce will be contract workers. The speed of these changes is not proportional to our preparedness for digital security, thus while on one hand there are steady technological advancements, on the other there is an extended risk of unprotected and unregulated data.
Feeble regulations for data protection
The report claims that to date, 30 per cent of countries have no data protection laws and those that do, lack uniformity. It further states there is a huge gap between technological advancements and regulatory requirements and frameworks to protect data. “Newer business models, digital transformation, and Industry 4.0 are leading to far-reaching changes in the way work is executed,” says Rohit Mahajan, president-risk advisory, Deloitte Touche Tohmatsu India LLP, in his foreword to the report. He adds, “Extended enterprises are becoming a key strategic choice made by most enterprises and regulations are failing to keep pace, in most cases, with the dynamic business environment.”
Policy framework required to protect data
The government needs to come up with a strong policy framework to ensure data protection. The report states, “Policymakers will need to reassess and update policies to define gig economy, ensure access to government and societal benefits, and facilitate access to education.”
Other measures that can be taken to protect data according to the report are fostering the right compliance culture within organizations extended value chain while managing an uncertain regulatory landscape, making the workforce tech-savvy and literate and self-regulation.
Startups faster in adoption of technology
The report claims that startups are much faster in adopting disruptive technologies. It says, “Regulatory policy cycle takes five to twenty years whereas a start-up can adopt disruptive technologies and business models, and turn into a unicorn in half the time.”