New Year, New Administration: A Year of Change 📅🕰️

Change is coming to the compliance landscape in 2025, but perhaps not in the way many are expecting. While the new administration has signaled a strong deregulatory agenda, the reality is that compliance professionals will likely face increased complexity rather than simplified obligations. As federal oversight potentially decreases in some areas, we’re seeing state regulators step up to fill the gap, creating a more nuanced regulatory environment that demands greater agility from compliance teams.

This episode of The Ethicsverse unpacked the key trends and challenges that compliance professionals need to prepare for in 2025. From the rising importance of state-level enforcement to the evolution of AI governance, we’re examining how these changes will impact your day-to-day operations and what you can do to stay ahead of the curve. We’re also looking at practical ways to demonstrate value and maintain program effectiveness, even as organizations face pressure to do more with less.

Meet The Ethics Experts:

• Lisa Beth Lentini Walker, CEO & Founder at Lumen Worldwide Endeavors, Deputy General Counsel, Corporate Legal and Assistant Secretary at Marqeta
• Matt Kelly, CEO & Editor, Radical Compliance
• Nick Gallo, Chief Servant & Co-CEO, Ethico

The Shifting Regulatory Landscape

• The incoming administration’s deregulatory agenda will not necessarily result in reduced compliance obligations. While federal oversight may decrease in certain areas, state-level regulation is expected to increase significantly.
• Organizations must prepare for potentially greater complexity in managing compliance across multiple jurisdictions, with state attorneys general likely to form coalitions for enforcement actions.
• This shift requires robust regulatory change management capabilities and enhanced monitoring of state-level developments.

Artificial Intelligence Governance

• The regulatory approach to AI is expected to become more permissive under the new administration, with previous executive orders likely to be rescinded and replaced.
• However, compliance officers must remain engaged in AI governance discussions as the technology becomes more prevalent in business operations. Current discourse has primarily focused on efficiency gains, with insufficient attention to governance and ethical considerations.
• Compliance teams need to develop expertise in AI risks and controls while working closely with newly appointed AI leadership roles within their organizations.

Improvisation Techniques in Professional Settings

• The principles of improvisation, particularly the “Yes, and” technique, offer powerful tools for maintaining open dialogue and fostering collaboration.
• This approach helps professionals stay present in conversations, build upon others’ ideas constructively, and maintain productive discussions even in challenging situations.
• The practice encourages active listening, reduces defensive responses, and creates an environment where innovative solutions can emerge through collaborative dialogue.

State-Level Enforcement Dynamics

• A significant trend emerging is the increased activism of state regulators and attorneys general, who are expected to fill any perceived gaps in federal enforcement.
• This development is likely to create additional complexity for compliance programs, as organizations will need to navigate varying requirements across different states.
• Areas such as privacy, cybersecurity, and AI regulation are already showing signs of state-by-state divergence, requiring more sophisticated compliance monitoring and management systems.

FCPA and Anti-Corruption Controls

• Despite speculation about reduced FCPA enforcement, anti-corruption programs remain critically important.
• The fundamental risks these programs address extend beyond FCPA compliance, protecting organizations against various forms of fraud and misconduct.
• Organizations should maintain robust anti-corruption controls as they serve multiple risk management purposes and may become increasingly relevant under future administrations or in response to state-level enforcement actions.

Immigration Compliance Challenges

• While immigration enforcement is expected to be a priority for the new administration, the practical impact on compliance programs may be more moderate than political rhetoric suggests.
• Organizations should focus on ensuring robust I-9 compliance processes and preparing for potential increases in compliance verification requirements.
• Additionally, compliance teams must be prepared to handle sensitive workplace issues that may arise from increased focus on immigration status.

Technology and Efficiency

• Compliance teams will need to leverage technology more effectively to manage increasing complexity with potentially constrained resources.
• This includes exploring AI applications for routine compliance tasks, implementing better regulatory change management tools, and developing more sophisticated monitoring capabilities.
• The focus should be on identifying technologies that can help scale compliance operations while maintaining or improving program effectiveness.

Compliance Program Agility

• Organizations must develop more agile compliance programs capable of responding quickly to regulatory changes and emerging risks.
• This requires not only robust risk assessment capabilities but also strong communication skills to effectively convey changes throughout the organization.
• Compliance teams need to build flexible frameworks that can adapt to shifting regulatory requirements while maintaining consistent risk management standards.

Resource Optimization

• With potential pressure on compliance budgets, teams must focus on optimizing resource allocation and demonstrating clear value to the organization.
• This includes identifying opportunities for cross-functional collaboration, leveraging technology for efficiency gains, and focusing efforts on highest-risk areas.
• Compliance officers should emphasize how their programs support business growth while protecting against critical risks.

Risk Assessment Capabilities

• Organizations need to enhance their risk assessment capabilities to address more complex regulatory environments.
• This includes developing better tools for monitoring state-level changes, assessing the impact of new technologies, and evaluating emerging risks.
• Compliance teams should focus on building systematic approaches to risk assessment that can adapt to changing regulatory landscapes.

Conclusion

The 2025 compliance landscape presents both challenges and opportunities for organizations and compliance professionals. While regulatory complexity may increase, particularly at the state level, this environment also provides opportunities for compliance teams to demonstrate their value through more sophisticated risk management approaches and innovative use of technology. Success will require a balance of technical expertise, strategic thinking, and effective communication skills, all supported by agile program management capabilities.