The Human Edge in Data Privacy

Global executives, board members, investors, regulators, and consumers are paying a lot more attention to cybersecurity and data privacy matters in 2026. This awareness is evident in educational campaigns such as Data Privacy Day (Jan. 27) and Cybersecurity Awareness Month (October), as well as in reports detailing data security trends and priorities.

“Cybersecurity is no longer just a technical issue; it is increasingly becoming a strategic economic priority,” asserts the World Economic Forum’s (WEF’s) Global Cybersecurity Outlook 2026 report. “Decisions about how much to invest in protecting digital assets have become financial choices that

shape an organization’s resilience, competitiveness and growth trajectory.”

Data Privacy and Security is Everyone’s Business

Tax and finance leaders also should keep in mind that cybersecurity and data privacy are no longer IT-only issues. The WEF report finds that data leak risks related to generative artificial intelligence (AI) use have surpassed the advancement of adversarial capabilities as a top concern among the 873 global C-suite executives, cybersecurity leaders, and academics who were surveyed. The report also indicates that more than nine in 10 large organizations have implemented AI-enabled cybersecurity tools. Humans also represent a crucial component of data privacy and cybersecurity.

As more organizational groups, including indirect tax teams, move forward with deployments of AI solutions and tools, it becomes increasingly important to address human-in-the-loop (HIL) and related change-management needs. HIL feedback cycles in AI systems insert human judgment into AI-enabled processes. Engaging in HIL, delegating tasks to AI agents, and understanding how to engage with AI to get your desired outcomes securely, often needs some employee upskilling and training along with guidance on how to adapt to their new roles.

While these changes will sound daunting to some, it’s helpful to keep in mind that most of us have made similar adjustments. For example, we may have hesitated the first time we experienced type-ahead features in our word-processing apps. Yet, today, few of us think twice about clicking on sentence-completion options to expedite and improve our communications.

Integrated Human Checkpoints

Vendors like Vertex incorporate checkpoints for human review in systems that leverage AI functionalities. This allows users to refine AI-generated outputs to review and ensure accuracy before finalizing and using those outputs. AI is not turnkey (not yet anyway), so human oversight remains essential. AI solutions are optimized when they are put through their paces by humans with deep domain and business expertise.

The WEF cybersecurity experts agree as this passage from the organization’s report illustrates: “Rather than replacing human expertise, AI is enabling specialists to shift their focus towards strategic oversight, governance and policy while delegating routine operational tasks to automation. This transition demands new skill sets, blending technical proficiency with strategic and ethical considerations, and underscores the growing importance of AI literacy across security teams.”

The same holds true across finance and indirect tax groups.