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INFORMATION COMPLIANCE IN 2026:



        WHAT SHOULD BE ON YOUR RADAR



                    Johan van Deventer,                                                                                         Intensified Sector-Specific
                     KZN Regional                                                                                               Scrutiny
                     Manager, Labournet
                                                                                                                                 While IC applies across all
                                                                                                                                sectors, enforcement focus is
                        nformation                                                                                              becoming more targeted.
                        Compliance                                                                                               Education, healthcare,
                     I(IC) has                                                                                                  financial services, professional
                      moved to the                                                                                              services, and any sector
                       centre of how
                       businesses                                                                                               handling large volumes
                                                                                                                                of personal or sensitive
                       operate.                                                                                                 information face heightened
                       It’s now a
        critical part of governance, risk                                                                                       expectations.  Generic
                                                                                                                                compliance frameworks are
        management, and day-to-day                                                                                              starting to crack under this
        operations across every sector.                                                                                         pressure.
        Organisations that treat it as
        essential rather than optional                                                                                           Regulators increasingly expect
        are the ones protecting their                                                                                           organisations to demonstrate
        reputation, avoiding penalties,                                                                                         how compliance is applied in
        and building trust with clients                                                                                         their specific operating context,
        and stakeholders.                                                                                                       including how emerging
                                                                                                                                technologies such as AI are used
         At its core, IC refers to the legal,
        governance, and operational                                                                                             within that environment.
        frameworks that ensure personal                                                                                         Reputation Damage is Enduring
        and sensitive information is
        collected, used, stored, shared,                                                                                         Fines are measurable, but
        and protected lawfully, ethically,   initiating investigations   Shadow AI i.e. the use of   ■   How are outputs reviewed    reputational damage is not.
        and accountably across the    proactively, demanding        Artificial Intelligence (AI)     and validated?              Enforcement notices,
        organisation.                 documentary proof of          tools by employees without    ■   How are staff trained on    investigations, and complaints
                                      compliance, and assessing     formal approval, governance,                                are increasingly public. Clients,
         It extends beyond complying                                                                acceptable use?
        with privacy legislation      governance failures rather than   or safeguards.            ■   What happens when         employees, and partners are
        to supporting control,        only responding to breaches.   In many organisations,         something goes wrong?       paying closer attention to how
        accountability, and oversight,   For organisations, this means   employees are already                                  organisations handle personal
        particularly when information   that compliance must be visible,   uploading personal or   Organisations are often      information and AI-driven
        is misused, lost, or exposed.  structured, and ongoing.  You   confidential information into   exposed not because they have   decision-making.  For many
                                      need to be able to show who   AI tools, using AI to draft   nothing in place, but because   organisations, the long-term
        2026: The Compliance          is responsible, what controls   emails, reports, contracts, and   what they do have does not   loss of trust far outweighs any
        Turning Point                 exist, how risks are tracked, and   HR documentation, and relying   operate in practice.  regulatory penalty.
         The shift did not happen     how issues are escalated and   on AI-generated outputs to    Living compliance now         Businesses must be able to
        overnight.                    addressed.                    make decisions.               requires active registers,    defend their decisions when they
         In 2023 and 2024, enforcement   Intentions and good faith   This creates immediate IC risks:  enforced policies, modern   are scrutinised.
        activity escalated significantly   efforts are no longer enough.    ■   Personal information might be    training, tested incident   Preparing for the New Reality
        with regulators taking action   Evidence matters.             processed unlawfully.       response plans, and clear
        and expecting definite                                                                    escalation paths that people   The organisations that will
        compliance.  This included    Boards Cannot escape          ■   Data might be transferred    actually understand and use   navigate 2026 successfully are
        fines of up to ZAR 5 million   Accountability                 outside approved jurisdictions.  effectively.             those that treat IC as a strategic
        against public bodies, alongside   Another critical shift heading   ■   Records of processing might be    If AI use is not reflected in your   risk, actively govern AI use
        enforcement notices and       into 2026 is the growing        incomplete or inaccurate.   compliance framework, that    rather than ignoring it, embed
        compulsory remedial actions.  focus on board and executive   ■   Accountability becomes    framework is already outdated.  compliance into governance
                                      accountability.                 unclear.                                                  structures, and focus on evidence
         2025 became the exposure year.                                                                                         rather than intention.
        Many organisations discovered –   Information Compliance does   The challenge is that Shadow AI   The Cyber-AI-Compliance
                                                                                                  Nexus
        often uncomfortably – that their   not sit solely at operational level.    rarely looks malicious.  It looks             Shadow AI is already inside
        compliance frameworks did     Boards are expected to exercise   efficient and helpful – and often   One of the defining features   most organisations.  The only
        not reflect how information is   oversight over information and   goes unnoticed.         of 2026 is the collapse of    question is whether it is managed

        actually used inside the business.  privacy risk in the same way they                     silos.  Cyber security, IC,   or unmanaged.
        Shadow AI, remote working     do over financial, operational,   Regulators will not be concerned  and AI governance can no   2026 belongs to those that can
        models, third-party platforms,   and reputational risk.     with whether AI use improved   longer be treated as separate   prove, not just promise, that
        and fragmented governance                                   productivity, but rather with   conversations.  A data breach,   compliance lives and adapts
                                       This means that compliance
        structures widened the gap    should feature meaningfully in   whether it was lawful, controlled,   an AI misuse incident, or a   inside their organisation. 
        between policy and practice.                                and governed.                 privacy complaint now sits at
                                      board packs, risk registers, annual                         the intersection of all three.
         2026 is where consequences   workplans, and governance     AI makes Paper Compliance                                   T: +27 (0)31 266 6570
        land. Regulators now expect   calendars.  Directors are expected   Obsolete                Boards should expect         M: +27 (0)82 786 7480
        organisations to prove that   to ask informed questions      Policies that exist only on paper   increasing scrutiny of access   E: johanvd@labournet.com
                                                                                                                                W: www.labournet.com
        compliance is active, governed,   and ensure that appropriate   are increasingly disconnected   controls, of third-party and
        and effective – not just that they   appointments, delegations, and   from reality.       vendor risk, of incident
        are trying.  This year is about   reporting lines are in place.                           response timelines, as well
        enforcement, accountability,   Where this does not happen,   As AI tools become embedded   as of alignment between IT,
        and evidence.                                               in day-to-day work, regulators   legal, HR, compliance, and risk
                                      silence can be interpreted as a   are asking harder questions,   functions.
        Enforcement is Accelerating   lack of oversight – and ignorance   including:                                               SCAN
                                      will not hold up as a defence.                               Treating AI misuse or data
         One of the most important                                  ■   Who approved the tools    incidents as purely technical   QR CODE
        realities for 2026 is that    The Unmapped Shadow AI Risk     being used?                 issues are now governance       TO SEE
        enforcement is no longer reactive.  One of the fastest-growing   ■   What data is being fed into    failures with legal and   VIDEO
         Regulators are increasingly   compliance blind spots is      them?                       reputational consequences.




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