Compliance isn’t a checkbox. It’s a cost center that can kill your deployment if ignored.
Indian SMBs face DPDP. European SMBs face GDPR. Everyone faces the reality that data sovereignty is becoming a non-negotiable requirement.
Key Concepts
- Data Residency — Where data lives, where it gets processed
- Shadow AI — Governance for what you can’t see
- Authentication Failure — When credentials become compliance violations
Security Failures
- Prompt Injection — When user input hijacks agent behavior; agents with tool access have real blast radius
- Vendor Lock-In — Platform migration may require a full compliance re-audit; factor this in
Regulatory Basics
DPDP (India): Up to ₹250 crore penalties under the Digital Personal Data Protection Act for improper cross-border data transfers.
GDPR (EU): Up to €10M or 4% of global annual revenue for serious violations. AI deployments that process EU resident data need a legal basis for processing — legitimate interest isn’t automatic.
Key Resources
- Security & Compliance — The practitioner security hub
- Data Residency — Where data lives, where it gets processed, what that means for GDPR and DPDP
- Shadow AI — Governance for what you can’t see
- Authentication Failure — When credentials become compliance violations
Compliance isn’t a checkbox. It’s a cost center that can kill your deployment if ignored — and it’s jurisdiction-specific, which means what applies in Germany doesn’t automatically apply in India.