Compliance regulations demand critical consideration for organizations that engage in a data-driven business. The foundation for this lies in data classification.

AI-automated data classification is an efficient, cost-effective, and sustainable way for businesses to ensure that their data collection adheres to compliance regulations.

However, before we discuss how AI achieves this, let’s examine what data classification entails.

What is Data Classification?

Data classification is simply the organization of data. It sheds light on the following:

  • What data has been stored?
  • Where is this information being stored?

Disorganized data storage can be incredibly inefficient, especially right now, when organizations tend to collect all kinds of minuscule information, from click rates to customer information. Alternatively, a cohesive system of identifying, sorting, and storing data in appropriate locations puts them in a position of better control over their data assets. 

Data Classification for Privacy and Security

Data classification can help organizations keep a better inventory of information that is easy to access and identify. Sensitive, confidential information relies on data classification to ensure customers’ data collection privacy and security. Each type of data can be secured separately and efficiently when divided and spread across the storage system, whether on their local servers or the cloud.

In order to classify data effectively, businesses will need to tag each bit of information on the type of sensitivity and level of importance to the organization. This way, not only is the data organized based on these factors, but organizations also have a better understanding of the kind of data they store and the kinds of protection they would need in place for each class of data.

How Classification Can Help with Data Inventory and Mapping for Privacy Impact Assessments and Workflows

Where data classification involves tagging each data to best divide them, data mapping is the process of creating an organized inventory of the tagged data. The inventory, or “data map,” is an important component for complying with current data privacy regulations like the General Data Protection Regulation (GDPR) in the EU and the California Consumer Privacy Act (CCPA) in the USA.

Privacy impact assessments (PIAs) also rely on accurate and absolute data maps. The assessment evaluates what personally identifiable information (PII) is collected, how it is being maintained, and what measures are being taken to protect this sensitive information. PIAs are used to identify and analyze the impact of privacy risks posed at various stages of a program’s or system’s life cycle. 

Businesses often use the PIAs to ensure their systems and programs adhere to compliance regulations. The risk assessment workflows estimate potential risks linked to aspects of the data inventory like owners, purpose, stored data, used data, shared data, and maintained information. This is only possible through data classification as it is the foundation for such assessments.

How AI-Driven Automated Data Classification Can Help with Privacy Laws Like the CCPA AND GDPR

AI-based automation for data classification helps automatically identify and tag the data organizations store. It is an efficient tool that can save an enterprise the time, money, and effort spent on a task that a well-equipped AI can easily handle for a fraction of the cost. Scalable advanced automation solutions like Secuvy secure a solid foundation for any future expansions that you may have planned. Other benefits offered by an AI handling data classifications are:


Regulations such as the CCPA and GDPR result from consumers’ and lawmakers’ growing concerns over the use of personal information (PI) and personal identifying information (PII) by corporations and other parties. Hence, a business’s data map should be accurate and absolute to protect them from any legal and social repercussions.

Staying Up-to-Date

Since privacy laws are constantly changing, manual classification methods can get outdated with every regulation update. However, with AI-driven solutions, organizations can keep track of new data types and categories quickly and efficiently. 

Quicker Audits

Data classification powered by AI results in thorough reports in real-time. While the specific features depend upon each software vendor, AIs like that of Secuvy conduct risk and compliance audits for HIPAA, FINRA, and Privacy Regulations. These audits that would usually take weeks to complete now take only a few hours.

Holistic Classification

Compared to manual classification methods, AI automation enables a more holistic system of maintaining your data inventory. Beyond security purposes, the AI optimizes the categories that suit each piece of data for the convenience of your users and your business operations. Secuvy’s AI also distinguishes data based on context, allowing for more meaningful data inventory.

Includes Metadata

Where there is data collection, there is metadata. With Secuvy’s AI automated data classification solutions, you can collect and maintain an inventory of retention-related metadata. This information serves multiple uses such as:

  • Collecting important data for compliance
  • Providing information for auditing needs
  • Assisting in choosing the suitable retention policy for the business


As data becomes increasingly valuable and sensitive, it is vital for enterprises to ensure the privacy of their customers, suppliers, and other parties. Data privacy and security regulations are being reworked regularly to meet the changes arising from the data-driven nature of industries these days.

Secuvy ensures that your business follows the compliance regulations applicable to your business and industry while also helping you maintain a robust data classification system.