Are you gambling with GDPR fines? Data privacy compliance for SAP systems in the world of AI

Artificial Intelligence (AI) continues to revolutionize business’ operations across industries all over the world to allow them to stay competitive. But with high rewards come high risks. One of the most critical responsibilities that falls on businesses is ensuring the new systems implemented comply with data privacy regulations.

Making sure your organization’s practices are in compliance with your local governance laws will help you mitigate the risk of major fines and penalties. AI systems often process large volumes of personal data, which increases the risk of exposure and regulatory violations. As data privacy laws tighten across regions – from GDPR in Europe to CCPA in California, POPIA in South Africa, and LGPD in Brazil – non-compliance can lead to severe penalties.

Have you considered that you need to get permission to use your client’s data in your AI systems? Let’s have a look at why getting the right consent is worth your time.

The global data privacy landscape: tightening regulations and rising penalties

• GDPR (Europe): Fines of up to €20 million or 4% of global annual turnover.
• CCPA/CPRA (California): Up to $2,663 per violation or $7,988 for intentional violations, potentially costing millions.
• POPIA (South Africa): Fines up to ZAR 10 million or imprisonment.
• LGPD (Brazil): Fines up to 2% of Brazilian revenue, capped at BRL 50 million.

For SAP customers, these challenges are amplified. SAP landscapes are often large, complex, and contain sensitive personal data across HR, payroll, and beyond. With AI increasingly integrated into areas like SAP SuccessFactors and Employee Central Payroll, maintaining compliance isn’t just a best practice; it’s essential.

Real-world data privacy fines and penalties

• Meta Platforms (Facebook) – €1.2 Billion (2023)
  In May 2023, Meta was fined €1.2 billion by Ireland's Data Protection Commission for transferring European user data to the U.S. without adequate safeguards, violating GDPR provisions.
• Amazon – €746 Million (2021)
  The Luxembourg National Commission for Data Protection fined Amazon €746 million for processing personal data in violation of GDPR, marking one of the largest penalties under the regulation. 
• Meta Platforms (Instagram) – €405 Million (2022)
  Meta's subsidiary, Instagram, faced a €405 million fine for mishandling children's data, including public disclosure of email addresses and phone numbers of users aged 13-17. 
• Meta Platforms (Facebook and Instagram) – €390 Million (2023)
  Meta was fined €390 million for forcing users to accept personalized ads as a condition for using Facebook and Instagram, breaching GDPR's consent requirements. 
• British Airways – £20 Million (2020)
  The UK's Information Commissioner's Office fined British Airways £20 million after a data breach compromised personal and financial details of over 400,000 customers due to inadequate security measures.
• Equifax – $575 Million (2019)
  Equifax agreed to a $575 million settlement with U.S. regulators following a 2017 data breach that exposed sensitive information of approximately 147 million consumers.
• Google – €50 Million (2019)
  France's data protection authority, CNIL, fined Google €50 million for lack of transparency and valid consent regarding ad personalization, marking the first major penalty under GDPR. 
• H&M – €35 Million (2020)
  German authorities fined H&M €35 million for excessive monitoring of employees, including recording details about their private lives, violating GDPR's data minimization principle.
• Criteo – €40 Million (2023)
  The French CNIL fined advertising company Criteo €40 million for failing to obtain valid consent for processing user data, highlighting the importance of transparent data practices. 
• AT&T, Sprint, T-Mobile, and Verizon – $200 Million (2023)
  The U.S. Federal Communications Commission fined major telecom providers nearly $200 million collectively for illegally sharing customers' real-time location data without consent.

No organization is immune; failing to act proactively can carry a steep price. Whether the issue is poor access control, unpatched software, or inadequate data governance, these real-world examples show how quickly a privacy misstep can escalate.

One of the most effective ways to manage risk is through strategic data minimization. Redacting or anonymizing personal data – especially when it's no longer needed for operational purposes – can significantly reduce exposure without hindering innovation. EPI-USE Labs offers a suite of tools that support these efforts, helping SAP customers take control of their data privacy posture. From identifying risk areas to automating data protection processes, our solutions are designed to keep your organization compliant, secure, and audit-ready in an AI-driven world.

(Sources: Axios, CookieScript, hicomply.com, CyberPilot, Skillcast)