Podcast: Compliance Isn’t a Roadblock with Digital Arkitechs
Table of Contents
Compliance: From Roadblock to Sales Accelerator
In many startups, compliance is viewed as the "Department of No." However, as Shayne Adler, CEO of Aetos, explains in the latest episode of Digital Arkitechs, modern compliance is actually a powerful sales tool. For B2B companies, between 80% and 95% of clients require security questionnaires. Having these "trust signals" ready can reduce procurement time by 30 hours on average.
Instead of retrofitting privacy at a high cost later, Adler advocates for a Privacy Principles by Design approach. By embedding data privacy into the foundation of a product, companies move from reactive defense to proactive growth.
The Invisible Risk: Algorithmic Disgorgement
One of the most sobering warnings for AI-driven startups is the concept of algorithmic disgorgement. This occurs when a company builds a product or AI model using data collected without proper consent or compliance. If discovered during a liquidity event or audit, regulators can force the company to delete everything built on that data, effectively destroying years of work and up to 95% of company valuation.
AI and Human Oversight: Finding the Balance
While AI tools like GRC (Governance, Risk, and Compliance) platforms can automate evidence collection, Adler emphasizes that human oversight remains irreplaceable. Automated platforms often become "background noise" in a busy startup environment. A human must still ensure that day-to-day actions align with written policies.
Securing the Vendor Stack
A major exposure risk for modern businesses isn't their own infrastructure, but their vendor stack. Adler highlights that you are equally responsible for what your vendors do with your data. If a vendor trains their AI models on your data without permission, that risk transfers directly back to you.
Five-Minute Compliance Checklist for Founders
Improving governance doesn't require a massive bureaucratic overhaul. Shayne suggests a simple exercise that takes under five minutes:
- Identify one area: Look at your CRM or email list.
- Write it down: In plain language, state what data you collect and how long you keep it.
- Audit the "Why": Does your current handling match how you would want your own personal data handled?
