How Regulatory Changes Impact Tech Marketing Strategies
- Henry McIntosh
- 1 day ago
- 12 min read
The tech marketing landscape is changing fast due to stricter regulations worldwide. Companies must now prioritise compliance while balancing user safety and transparency. Key developments include:
The UK's Online Safety Act (effective 17 March 2025) enforces "safer by design" principles, with penalties up to £18 million or 10% of global revenue.
California's SB 53 (effective 1 January 2026) requires AI companies to disclose safety measures, raising transparency standards.
The EU AI Act (phased from February 2025) introduces rules for AI systems, including transparency for chatbots and labelling of AI-generated content.
These regulations affect how data is collected, used, and communicated. For instance:
AI-driven marketing must now ensure clear disclosures and minimise bias.
Data privacy laws in 20 US states demand stricter controls, with some banning the sale of sensitive data outright.
International standards, like GDPR, require companies to align global campaigns with local laws.
Marketers face challenges such as managing "default-off" features for children, separating regulatory updates from direct marketing, and explaining complex AI processes in plain terms. Staying informed, incorporating human oversight, and consulting experts can help businesses avoid fines and maintain trust.
Compliance is no longer optional - it's a fundamental part of marketing strategies.
Mitigate Compliance Risk with Principles of Privacy-Centric Marketing
Recent Regulatory Changes Affecting Tech Marketing
The rules governing tech marketing are evolving quickly, with new regulations across various regions prompting companies to rethink how they approach AI-driven campaigns and data collection. Three key changes are leading the way: the EU AI Act, which introduces the first legal framework for artificial intelligence; a surge in US state-level laws addressing algorithmic bias and cybersecurity; and international cybersecurity standards that demand stricter data management practices. Together, these developments are reshaping how businesses design, execute, and communicate their marketing strategies, making compliance an integral part of the process from the very beginning.
EU AI Act: A New Framework for AI Marketing
The EU AI Act establishes a risk-based structure, classifying AI systems into four categories: Unacceptable, High, Transparency, and Minimal/No Risk [5]. Starting in February 2025, practices that exploit vulnerabilities will be prohibited. For marketers, the most immediate impact lies in transparency requirements. For instance, any AI interacting with humans - like chatbots on landing pages - must clearly disclose that users are engaging with a machine. Similarly, deepfakes or AI-generated content on public matters must be clearly labelled [5]. By August 2025, developers of general-purpose AI models will also need to provide summaries of their training data [5].
High-risk AI systems, such as tools for profiling or automated decision-making in areas like recruitment or credit scoring, face even stricter rules. These systems must undergo risk assessments, use high-quality datasets to reduce bias, and ensure human oversight [5].
The European Commission states, "The aim of the rules is to foster trustworthy AI in Europe... these measures guarantee safety, fundamental rights and human-centric AI" [5].
The full implementation of the Act is set for 2 August 2026, with additional deadlines for embedded systems extending into 2027. As a result, marketing strategies are shifting towards greater transparency and prioritising human-centric approaches over opaque, automated processes.
US State Laws on AI and Cybersecurity
In the US, 20 states have introduced comprehensive data privacy laws as of early 2026, with several new statutes coming into effect [4]. California’s SB 53, effective from 1 January 2026, requires AI companies to publish detailed safety and security measures, raising transparency standards for AI-powered marketing tools [4]. Maryland’s Online Data Protection Act (MODPA) sets a strict data minimisation rule, allowing data collection only when it is "reasonably necessary and proportionate" to the service requested, rather than for general marketing purposes [6].
Many states now mandate data protection assessments before high-risk activities like AI-driven profiling. New Jersey and Colorado are leading this trend, while Minnesota’s law gives consumers the right to challenge AI profiling results. It also requires companies to maintain detailed records of personal data [4]. Tennessee offers an "affirmative defence" for companies aligning their privacy programmes with the NIST privacy framework [7].
Bill Tolson, President of Tolson Communications LLC, comments, "US data privacy regulation is expanding rapidly, with 20 states now enforcing comprehensive laws that introduce new requirements for sensitive data, AI profiling, children's privacy, and universal opt-out signals" [4].
Maryland stands out with its outright ban on selling sensitive data, even with consumer consent.
Matt Davis, CIPM at Osano, explains, "Maryland is easily the most unique law in this list, if not in the nation... it outright prohibits the sale of personal data, regardless of whether the consumer opts in or not" [7].
Additionally, several states - such as New Jersey, Maryland, and Delaware - now require businesses to respect browser-level universal opt-out signals like Global Privacy Control, adding complexity to cross-platform tracking strategies.
International Cybersecurity Standards
Beyond national laws, international cybersecurity standards are adding another layer of complexity for companies managing data-driven marketing across borders. Organisations must now align US state-level compliance with global frameworks like the GDPR and Canada’s CPPA [4]. These standards require ongoing monitoring, with companies obligated to report serious incidents or malfunctions to authorities [5].
In the US, state laws increasingly demand defined security measures, though the specifics are often vague, complicating multi-state and cross-border campaigns [4]. Companies must also adapt to technical requirements, such as recognising and honouring universal opt-out signals across jurisdictions [4]. With rules for general-purpose AI models kicking in by August 2025 and stricter high-risk AI obligations following in 2026 and 2027, many businesses are embedding privacy-by-design principles into their marketing strategies rather than treating compliance as an afterthought. This shift is reshaping the way marketing campaigns are planned and executed in the tech industry.
Marketing Challenges in Regulated Tech Environments
Navigating the world of tech marketing within strict regulatory frameworks is no small feat. New rules demand that marketers carefully balance compliance with the effectiveness of their campaigns. These regulations touch everything from how data is collected to how messages are crafted, forcing constant adjustments to keep up with the evolving landscape.
Data Collection and Targeting Restrictions
Under the Data Protection Act 2018 and PECR, marketers face stringent rules on how they collect and use personal data. A key provision is the "absolute right to object." If someone requests their data not be used for direct marketing, companies must stop processing it immediately, regardless of any previous lawful basis[1]. When it comes to electronic marketing, explicit consent is required, or campaigns must meet the strict "soft opt-in" criteria for similar products or services. Telephone campaigns, meanwhile, need to comply with TPS screening and internal "do not call" lists[1].
Even the tone of a message can bring complications. For instance, communications like billing updates can be classified as direct marketing if they take on a promotional tone. The Information Commissioner's Office explains:
"If your message actively promotes an initiative, by highlighting the benefits and encouraging people to participate or take a particular course of action, it is likely to be direct marketing"[1].
AI-driven targeting introduces another layer of complexity. New guidance restricts the use of AI for identifying "affinity groups" or processing special category data, requiring compliance with fairness and lawfulness principles[8]. Marketers must also prove their data use is "focused and minimal." If a goal can be achieved with less intrusive methods, current practices could be deemed unlawful[1]. This forces companies to rethink how they justify AI-driven decisions.
Transparency Requirements for AI Marketing
On top of data restrictions, transparency rules now require companies to clearly explain automated decision-making processes. This is no easy task when dealing with complex AI models. Regulations demand "meaningful information" about how algorithms work, but translating machine learning logic into plain language remains a significant hurdle[8][9].
Consent rules for automated marketing systems have also tightened. Companies can no longer rely on pre-ticked boxes; consent must be given through clear, affirmative action[10]. In California, SB 243 - effective from 1 January 2026 - requires chatbots interacting with underage users to regularly remind them they’re engaging with a machine, not a human[2]. Meanwhile, the UK’s Data (Use and Access) Act, which became law on 19 June 2025, has prompted a comprehensive review of AI guidance. Transparency has become a compliance pillar in its own right, addressing the opaque nature of machine learning systems[8][10].
Keeping Pace with Changing Regulations
Regulatory frameworks are constantly shifting, often at different speeds across regions. For example, the UK GDPR has been updated through the Data (Use and Access) Act 2025, while new state-level laws in the US, like California’s SB 53 and SB 243, add further complexity[3][2]. The UK’s DUAA 2025 is being rolled out in stages, with changes taking effect between two and 12 months after Royal Assent, making compliance a moving target for businesses[3].
The Information Commissioner’s Office acknowledges the challenge of keeping up:
"The ICO supports the government's mission to ensure that the UK's regulatory regime keeps pace with and responds to new challenges and opportunities presented by AI"[8].
Similarly, the Department for Science, Innovation and Technology has stated:
"The DUAA will not replace the UK General Data Protection Regulation ('UK GDPR')... but it will make some changes to them to make the rules simpler for organisations, encourage innovation... whilst maintaining high data protection standards"[3].
For marketers, this ever-changing landscape means strategies must be revisited frequently. Campaigns designed under one set of rules may need substantial revisions before launch. Companies working across multiple jurisdictions face an even tougher task, as they must juggle UK, EU, and US state laws - each with its own requirements for AI transparency, data minimisation, and consumer rights[2][3].
How to Navigate Regulatory Challenges in Tech Marketing
Navigating the maze of regulations in tech marketing might seem overwhelming, but there are practical ways to stay compliant. Success boils down to three key strategies: keeping an eye on regulatory changes, ensuring human oversight in automated processes, and leaning on expert advice when dealing with complex markets.
Monitoring and Implementing Compliance Changes
The regulatory environment is constantly shifting, so staying informed is a must. For instance, the Advertising Standards Authority (ASA) uses its Active Ad Monitoring system to scan over 3 million ads every month, showing just how proactive oversight has become [11]. Marketers need to follow updates from key regulators like the Information Commissioner's Office (ICO) and understand the distinction between neutral regulatory updates and direct marketing, which faces stricter rules under PECR and GDPR [1]. As the ICO explains:
"If your message is in a neutral tone and doesn't contain any active promotion or encouragement for people to take a particular action, it is unlikely to count as direct marketing" [1].
The Data (Use and Access) Act 2025 (DUAA), which became law on 19 June 2025, introduced a "stop the clock" rule for Subject Access Requests, giving marketers more flexibility when managing data queries [3]. Since changes under the DUAA are being phased in over several months, compliance practices need regular updates. This is especially important for campaigns spanning multiple regions. For example, California's SB 53 and SB 243, effective from 1 January 2026, introduce AI transparency rules that differ significantly from UK standards [2]. Even established companies like Sky Betting and Gaming have faced reprimands from the ICO for failing to secure proper user consent, highlighting the need for ongoing vigilance [11].
Adding Human Oversight to AI Campaigns
AI may be transforming marketing, but regulators have made it clear that accountability lies with the marketers. As the ASA states:
"Don't try to blame your computer, marketers are ultimately responsible for their ads" [13].
Human oversight is critical because AI can sometimes produce misleading content that disclaimers alone can't resolve. The Committee of Advertising Practice reinforces this point:
"Disclosure alone is very unlikely to mitigate the harm caused by a fundamentally misleading message" [12].
The DUAA 2025 offers more flexibility for automated decision-making, allowing AI-driven processes in broader scenarios as long as safeguards like human intervention are in place [3]. This means marketing teams should build in review stages to verify AI-generated content, check targeting strategies, and ensure all messaging aligns with ethical standards. Even as the ASA plans for 20% of its regulatory rulings to involve AI in 2025, human review will remain a critical step for all final decisions [11]. Balancing AI efficiency with human judgement is key to avoiding costly compliance issues.
Working with Specialists in Regulated Markets
Sometimes, navigating complex regulations requires expertise beyond what in-house teams can provide. The ASA’s Copy Advice team, for example, offers tailored reviews of non-broadcast ads, giving marketers a reliable resource to ensure their campaigns meet current codes [11]. In highly regulated industries - like financial services, pharmaceuticals, SaaS, and tech - collaborating with specialists such as Twenty One Twelve Marketing can make all the difference. Their approach turns regulatory challenges into opportunities, helping clients create standout campaigns that also meet compliance standards.
Specialists are particularly valuable in navigating sector-specific rules, such as the HFSS advertising ban, which takes effect on 1 October 2025 and restricts online ads for less healthy food and drink products [11]. They can also help marketers use more lenient frameworks, like the DUAA 2025’s exemptions for low-risk cookie technologies, to improve user experience while staying within legal boundaries [3]. For teams juggling UK GDPR, California regulations, and the EU AI Act, this level of expertise can prevent costly mistakes that arise when compliance is treated as an afterthought.
Conclusion
The pace of regulatory changes in tech marketing is accelerating, and keeping up requires more than just ticking boxes. It demands a proactive approach - staying informed on new regulations, ensuring human oversight in AI-driven campaigns, and bringing in specialists to navigate the intricacies of heavily regulated markets. This dynamic landscape calls for flexible strategies and informed decision-making.
The risks of non-compliance are steep. With high penalties and constant scrutiny, failing to meet regulatory standards can lead to severe financial losses and damage to a brand's reputation. Compliance, therefore, isn't a one-off task; it's an ongoing commitment.
Importantly, compliance doesn't have to come at the cost of innovation. As The Rt Hon Oliver Dowden aptly puts it:
"Digital technologies are key to our future prosperity, but we must also make sure that they are developed responsibly so we protect society and uphold the rights of our citizens" [14].
By clearly separating neutral regulatory updates from direct marketing, backing AI claims with solid evidence, and prioritising safety in design, companies can build trust with consumers while staying ahead of the competition.
For businesses operating in highly regulated industries, working with experts like Twenty One Twelve Marketing can transform the challenge of compliance into a strength, helping to navigate complex rules and create a competitive advantage.
Looking ahead, adaptability will become even more critical. The regulatory environment is set to evolve further, with upcoming laws such as California's AI transparency requirements (effective 1 January 2026) and the UK's advertising restrictions on less healthy food and drink (expected from 1 October 2025) already shaping industry practices. Companies that integrate compliance into their marketing strategies today will be better equipped to succeed in the future.
FAQs
How can tech marketers adapt to the EU AI Act and stay compliant?
To meet the requirements of the EU AI Act, tech marketers need to ensure their AI-powered campaigns align with the Act’s risk-based guidelines. This involves being transparent about how AI is utilised in marketing efforts and keeping thorough documentation to prove compliance.
Clear communication about AI's role in campaigns is key, along with maintaining detailed records. By keeping up with regulatory updates and integrating compliance into their strategies, marketers can adapt to these changes effectively while preserving audience trust.
How do US state-level data privacy laws affect AI-driven marketing strategies?
Recent data privacy laws in the United States, now active in 21 states, are reshaping the landscape for AI-driven marketing. These laws demand that marketers secure explicit consent from users, limit the collection of personal data to what’s absolutely necessary, and ensure that all data is stored securely. On top of that, businesses must establish strong compliance protocols and maintain thorough audit trails for any automated profiling activities.
While these regulations aim to protect user privacy, they also raise operational costs and make hyper-personalised marketing strategies harder to execute. For tech marketers, this shift calls for a focus on transparency, ethical handling of data, and ensuring AI systems meet compliance standards. The upside? These efforts can also strengthen customer trust and loyalty over time.
How can companies ensure transparency when using AI in their marketing strategies?
In the UK, transparency isn't just a good practice for AI-driven marketing - it’s a legal obligation under GDPR. Businesses are required to clearly communicate why personal data is being processed by AI, how long the data will be stored, and who it might be shared with. Importantly, these explanations must be easy to understand, especially when it comes to how AI influences decisions - like generating recommendations or creating content.
To stay compliant, marketers should include clear disclosures in their materials. For example, ads, landing pages, or email footers might state something like: "This image was created using artificial intelligence." The Advertising Standards Authority (ASA) also mandates such transparency to prevent misleading consumers and ensure accuracy in marketing campaigns. Additionally, keeping a detailed audit trail of data sources and decision-making processes is essential for proving compliance.
Certain industries, such as financial services or pharmaceuticals, face even stricter scrutiny. In these cases, working with specialists like Twenty One Twelve Marketing can help design campaigns that prioritise transparency from the outset. This approach not only ensures compliance but also builds trust with even the most cautious audiences.