By Sara Spalt, MBA, MEd, AAiP March 13, 2025 | IT Strategy, Data Privacy, Compliance
Why Data Privacy Matters More Than Ever
With increasing digital engagement, associations are collecting more member data than ever before. But with that data comes responsibility. Regulations such as the General Data Protection Regulation (GDPR) and the California Consumer Privacy Act (CCPA) have already reshaped how organizations handle personal information. Now, new AI-related regulations are adding another layer of complexity.
Ensuring compliance is not just about avoiding fines—it’s about protecting member trust, maintaining ethical data practices, and future-proofing your association.
The Big Three: GDPR, CCPA, and Emerging AI Regulations
1. GDPR: Still Setting the Global Standard
Who It Affects: Any organization that processes the personal data of EU citizens, even if the association is based in the U.S.
Since its enforcement in 2018, GDPR has set the bar for data privacy laws worldwide. It mandates:
Member data rights – Individuals can request access, corrections, or deletion of their personal data.
Explicit consent – Organizations must obtain clear consent before collecting or processing data.
Breach notifications – Any data breach must be reported within 72 hours.
Significant penalties – Non-compliance can result in fines of up to €20 million or 4% of annual revenue.
What’s new in 2025?
Greater focus on AI-driven data processing. Organizations using AI for member segmentation or automated decision-making must ensure compliance with GDPR’s fairness and transparency principles.
Stricter cross-border data transfer rules impact U.S.-based associations handling EU member data.
2. CCPA & CPRA: The U.S. Privacy Wave
Who It Affects: Any organization that collects data from California residents and meets specific revenue or data volume thresholds.
California led the way in U.S. data privacy with CCPA, later expanded by the California Privacy Rights Act (CPRA), which added:
Right to opt out of automated decision-making – If an association uses AI to recommend events, personalize content, or automate renewals, members must be allowed to opt out.
Stronger third-party data regulations – Associations must ensure vendors, including AMS and CRM providers, follow privacy standards.
Expanded member rights – Individuals can now request detailed disclosures on how their data is used, including AI-driven insights.
What’s new in 2025?
Additional states, including Colorado, Virginia, and Connecticut, have implemented similar privacy laws, making compliance more complex for associations operating across multiple regions.
Stricter enforcement of data minimization rules—organizations should only collect essential data and justify retention policies.
3. AI and Data Privacy: The New Compliance Challenge
Who It Affects: Any association using AI for member engagement, predictive analytics, or automated decision-making.
AI-driven tools offer valuable insights and automation, but they also raise concerns about transparency, fairness, and data security. New regulations aim to address these risks:
The EU AI Act (2024) – Categorizes AI into different risk levels. AI used for profiling members or making automated decisions must be auditable, transparent, and non-discriminatory.
Proposed U.S. AI regulations – While no federal AI law exists yet, draft proposals suggest new requirements for AI-generated content disclosures and bias audits for AI-driven decision-making.
Bias and discrimination concerns – Associations using AI for credentialing, recruitment, or personalized member experiences need to ensure models are free from unintended bias.
How Associations Can Stay Compliant in 2025
Conduct a data audit – Identify what data is collected, where it’s stored, and how it’s used. Ensure that only necessary information is retained.
Review privacy policies – Update policies to reflect new GDPR, CCPA, and AI-related compliance requirements.
Strengthen vendor agreements – Work with AMS, CRM, and marketing platform providers to confirm their compliance with evolving regulations.
Implement AI governance – If AI is used for member segmentation, automation, or engagement, ensure transparency and accountability measures are in place.
Train staff on compliance – Educate employees on data privacy best practices and how to handle member data securely.
The Bottom Line: Privacy Is an Ongoing Priority
As data regulations evolve and AI adoption grows, associations must take a proactive approach to data privacy. Beyond compliance, ethical data handling is essential for building trust with members and ensuring long-term sustainability.
By staying informed and adopting strong governance practices, associations can confidently navigate the changing data privacy landscape in 2025 and beyond.