ARTICLE
28 July 2026

Are You Facing Compliance Decision Fatigue In The Age Of AI?

SM
Sheppard, Mullin, Richter & Hampton LLP

Contributor

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Companies often struggle with privacy compliance not because they lack legal knowledge or a desire to mitigate risk. Instead, they struggle because there is no practical way to address small, reactive privacy questions that have an immediate impact on operations.
United States Privacy
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Companies often struggle with privacy compliance not because they lack legal knowledge or a desire to mitigate risk. Instead, they struggle because there is no practical way to address small, reactive privacy questions that have an immediate impact on operations. To solve this problem, many are turning to AI for solutions. Setting aside privilege risks, these outputs still need human review to avoid factual errors, impractical recommendations, or incomplete answers.

However, if every privacy, cybersecurity, or AI governance question that a business raises becomes a complicated workstream, the organization risks costly slowdowns. As a result, business teams hesitate to bring legal into the loop; they wait too long to escalate problems; and what could have been a simple risk mitigation process becomes a significant issue down the road.

Regulators, including active state AGs, expect companies to have appropriate corporate compliance programs in place. These programs should be right-sized for the company and its risks. Whether it is “privacy by design” or other proactive steps, there is an expectation that a company will have implemented processes that allow compliance questions to get asked – and answered – at the beginning. To make this happen, companies need a fast answer, a clear judgment call; not a lengthy memo or inaccurate or impractical AI answers.

Putting It Into Practice: As artificial intelligence use increases, now is an excellent time to assess your compliance process. Do you have mechanisms in place to get quick and actionable answers to tricky questions that are trustworthy and based on experience? Having a clear model for onboarding this advice can make privacy easier to use and budget for, improving compliance outcomes.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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