2025 Digital Communications Outlook: Top 5 Predictions
As we enter 2025, digital communications continue to evolve rapidly, presenting both opportunities and challenges. During our recent webinar, 2024 Regulatory Roundup: Annual Insights from Eversheds Sutherland, it was suggested that we dust off our crystal balls and make predictions for the 2025 year.
In this post, we examine key trends that may shape how firms communicate, operate, and navigate regulatory requirements in the coming year. Drawing from insights shared by industry experts, our top five predictions are:
1. Regulatory environment returns to fundamentals
The nomination of Paul Atkins as SEC chairman signals a significant shift in regulatory approach for 2025. The new administration is expected to implement more streamlined enforcement processes while maintaining focus on market integrity. This transition suggests a regulatory environment that emphasizes efficiency and proportionality in enforcement actions. It also suggests a move away from the sweeping initiatives of recent years toward more targeted interventions as regulators acknowledge that communication issues often signal broader compliance concerns.
"We are moving into a much less litigious administration, and there may be some opportunities for rule clarifications and guidance in the next few years."
2. Artificial intelligence: From prohibition to integration
As we enter 2025, more firms will actively integrate AI technologies into their operations rather than attempting to prohibit them . This adoption comes amid complex regulatory requirements, with firms navigating a patchwork of state laws and international frameworks like the EU AI Act. Success will require balancing innovation with compliance, particularly as regulators scrutinize AI applications in client interactions and risk management. Companies must develop rigorous governance frameworks while remaining alert to potential misrepresentation of AI capabilities.
"I have been receiving more inquiries about recordkeeping requirements for AI-generated content – from transcripts and scheduling to ChatGPT queries and other AI tools. The requirements become especially unclear when firms use these tools to supplement their research or operational processes."
3. Communications data transforms into a strategic asset
2025 will present opportunities for firms to derive strategic value from their communications data through AI-powered analytics. Forward-thinking organizations will leverage these vast data repositories to generate business intelligence, revealing valuable insights about client preferences and market trends. For example, analyzing client interactions across channels can help firms understand engagement preferences and predict potential concerns before they escalate.
This isn't just about meeting regulatory obligations — it's about the potential to turn what many see as a burden and transforming compliance data into a competitive advantage.
4. Non-stop communication channel evolution
Communication technologies continue to innovate with voice-enabled tools and new social platforms, reshaping client interactions. The key challenge isn't technological adoption itself but developing and enforcing appropriate policies for these new channels. Firms must balance the adoption of emerging communication platforms with supervision frameworks — particularly as the distinction between official and unofficial channels becomes increasingly nuanced — and prepare for increased feature differentiation in digital communications.
The shift from traditional email to chat-based platforms brings new challenges in supervision and recordkeeping. Success requires systems that are sophisticated enough to monitor diverse communication channels while remaining flexible enough to incorporate new technologies as they emerge.
"Today's business conversations ping-pong across platforms — from Slack messages to Huddles to Zoom meetings — all in a matter of minutes. This isn't just about monitoring individual tools anymore; it's about capturing fluid conversations that hop between platforms."
"The problem we have with emerging technologies or platforms isn't the ability to adapt to the tech. It's the ability to develop reasonable policies and procedures and stick to set usage boundaries. It's unrealistic to say 'all communications must occur through your Outlook account.' It's also unrealistic to let novelty determine policy."
5. Cryptocurrency and digital assets unleashed
Under the new administration, we anticipate a move from enforcement-focused oversight to a more innovation-friendly framework that could reshape how traditional financial institutions engage with digital assets. This shift suggests a fundamental change in how regulators view and interact with the crypto industry, potentially opening doors for established financial institutions to expand their digital asset offerings while providing clearer operational guidelines.
This evolving regulatory landscape could catalyze several important developments, with traditional financial institutions potentially introducing more sophisticated crypto-based products and services. New regulatory frameworks may better accommodate digital assets' unique characteristics while maintaining appropriate investor protections , helping legitimate crypto businesses operate with greater certainty.
"The SEC [under Paul Atkins] may not bring enforcement actions against crypto companies solely for registration violations, at least until some clear regulatory framework has been established. The SEC may update guidance on crypto assets as securities as well as revising its current framework to address industry changes like increased decentralization and the rise of proof-of-stake consensus. "
From predictions to practice
As financial services organizations prepare for 2025, they must develop comprehensive strategies that align policy, technology, and supervision. Organizations preparing for 2025 need comprehensive strategies that address multiple facets of digital communication:
1. Policy framework:
Develop flexible policies that accommodate new technologies while maintaining clear boundaries for acceptable use. These policies should anticipate technological evolution while establishing firm guidelines for compliance. The emphasis should be on creating adaptable frameworks that can evolve with changing technology without compromising regulatory integrity.2. Supervision and monitoring:
Build scalable oversight systems that can adapt to increasing communication volume and variety. As communication channels proliferate, firms need thoughtful oversight mechanisms that can effectively monitor diverse platforms while maintaining consistent compliance standards. This requires not just technological capability but also clear procedures for identifying and addressing potential violations.3. Technology integration:
Balance innovation with compliance requirements. This is particularly crucial in areas like AI and emerging communication channels where regulatory expectations continue to evolve. Organizations need to implement solutions that enhance operational efficiency while maintaining appropriate controls and documentation.4. Risk management:
Create frameworks that anticipate and address evolving regulatory expectations while supporting business objectives. This means developing comprehensive approaches that consider both current requirements and potential future developments in the regulatory landscape.
"I'm seeing 2025 as the year corporations focus on getting better control over their data and workflows for handling data in discovery. With this, there will be an increasing recognition from in house legal teams that their litigation readiness processes will require a refresh based on the proliferation of new communication and collaboration platforms."
Thank you to our compliance experts and analysts!
Our predictions wouldn’t have been possible without the experience and insight of the following contributors:
- Brian Rubin, Partner, Eversheds Sutherland
- Max Miseyko, Associate, Eversheds Sutherland
- Melissa MacGregor, Deputy General Counsel, SIFMA
- Christian Hunt, Founder, Human Risk Limited
- Matthew Berstein, Information Governance Strategist, Bernstein Data
- Annie Kong, Senior Managing Director, IQ-EQ
- Suzan Rose, Senior Advisor, AIMA
- Ryan Thorpe, Director, Sole Consulting
- John Goff, Managing Director, FTI Technology
- Tim Anderson, Senior Managing Director, FTI Technology
While our crystal ball may have helped us glimpse potential developments for 2025, the reality remains that significant uncertainty lies ahead. In this dynamic environment, the only constant is change itself. But the enduring truth remains: regardless of what the future holds, adherence to fundamental compliance principles will remain essential.
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- 2025 Digital Communications Outlook: Top 5 Predictions - January 14, 2025
- 2024 Regulatory Enforcement: A Year of Transformation - December 19, 2024
- The AI Balancing Act: 2024 FINRA AI Guidance on Juggling Innovation and Compliance - November 1, 2024
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