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The Boundaries of Data are Expanding – That’s a Challenge for CX

Published: December 18th 2025

Big Data is Bigger Than Ever

We’re surrounded by data. Every digital action we take generates information, whether that’s making a purchase, completing admin tasks, or making a simple Google search.  Every day, 402.74 million terabytes of data are created. This is a huge opportunity for Customer Experience (CX); an opportunity to create seamless, personalized experiences, powered by an unprecedented understanding of the customer. But this opportunity comes with significant risk.

And this universe of ‘big data’ isn’t getting any smaller. With the proliferation of AI tools, data generation is happening faster than ever, and more data is required to support the development and training of AI models. And it’s not just AI – smart devices are growing more and more common. A greater part of our lives is being recorded, monitored, and stored.

And all this new data poses profound challenges:

  • As data continues to grow in importance, new regulations, particularly concerning AI and smart devices, are likely to come into force to control production and distribution.
  • Businesses are going to need to be able to make use of the new levels of data being collected from their customers – both how to store it safely, and how to make effective use of it.
  • Digitally-enabled devices must integrate seamlessly with existing CX platforms to make best use of health and monitoring data to deliver seamless customer support, and in some cases, active care.

Internet of Things Data

We live in a world of smart devices.  From smart meters to temperature sensors, to digitally-enabled medical devices, we’re surrounded by technology that records the details of our everyday lives, and provides a level of convenience never before possible. Smart meters pass energy usage data directly to utilities providers, to save time for consumers and providers. Digital medical devices are making hospital-grade care possible from the comfort of home, introducing potentially life-changing changes to those with medical conditions. The future is powered by data, and it’s freeing us up to spend more of our time living and less manually managing admin.

These devices are only going to become more and more common. It is predicted that by 2030, 39 billion Internet of Things devices will be live and connected. These devices will generate data in a variety of different forms, at an immense volume, to be stored and handled by organizations. And that’s not just the flashy ‘smart’ devices that grab headlines and power provocative marketing. That’s hidden IoT sensors within devices that check for faults, and proactively schedule repairs; things the customer might never directly interact with.

And the way we treat that data is changing. Recently, the UK Information Commissioner’s Office has said that it considers all data generated by IoT devices—and that could be medical data—to be considered personal data, and thus subject to data protection regulations. And this is only the opening salvo of what’s certain to be an increasingly complex regulatory maelstrom.

  • As AI continues to command the attention of governments, more questions are likely to be asked about the data that trains and supports these models, and how and where that data is stored.
  • As IoT devices become more integrated into national health services, the maintenance of the data webs that integrate those devices will become a national security issue.
  • The potential for data misuse is high – smart devices are just as vulnerable to attack as any computer, and for users, criminals gaining access to intimate parts of their lives could potentially be devastating.

As populations and governments become more aware of the data that underpins their lives, scrutiny is only likely to grow more intense.

Woman happily looking into a computer screen

 

The New Meaning of ‘Public Cloud’

For a long time, organizations using cloud services lived under the illusion that there was a ‘public cloud’ – that when it came to cloud services, ownership and jurisdiction were notional categories at best. If something was in the cloud, that absolved you from the responsibility of knowing where it was stored, or who was responsible for it.

In the 2020s, that illusion has come crashing down around us. The AI boom has seen data centers become a real category of infrastructure. People think about data centers in the same way they once thought about bridges, windfarms, and nuclear power stations. Their assets that deliver return on investment for those who build them, provide potential dividends for the nations that host them, and could potentially support services critical to national security. Businesses can’t afford a cavalier attitude to cloud anymore.

Regulators and customers want visibility over the cloud. They want to know where data is stored, by whom, and what processes exist to restore service in the event of an outage:

  • Data sovereignty is an increasing concern – governments want to prevent the personal data of their citizens from falling into the hands of overseas actors, some of whom may be hostile.
  • When data crosses borders, the organizations hosting or creating it expose themselves to regulatory risk – in crossing between jurisdictions, they risk falling afoul of different, and sometimes contradictory, regulatory regimes.
  • Organizations are likely to face increased pressure from their customers in response to shifting regulatory regimes. They must be able to meet the specific needs of their different customers, or risk losing business on the basis of data regulation.

The cloud is starting to attract attention from governments and regulators. Businesses and organizations handling sensitive data, including that generated by IoT devices, have to be prepared to face regulatory uncertainty.

 

Preparing for Regulatory Uncertainty

The world of data regulation is complex, but this is the least complex it’s ever going to be again. It’s only up from here; more regulatory bills, more trans-national contradiction, greater risk of regulatory penalties. It’s critical that businesses adapt now to prepare for the era of regulatory uncertainty.

More than anything, organizations need to take control of their data strategy. That means understanding what data they store on customers, where that data is kept, and which regulatory environments apply to the storage and transfer of that data. From there, they can start to build a real strategy:

  • Enhance security postures – Businesses will have to move beyond the traditional perimeter defence strategies for data protection, toward a more holistic cybersecurity approach. And this applies to all data, including that generated by IoT smart devices.
  • Develop a Geographic Strategy – Businesses can’t afford to neglect geography; where data is stored, and by whom, matters more than ever. Organizations need to be thinking deliberately about the locations of their data centers and respond directly to customer needs and regulatory shifts.
  • Do Your Due Diligence ­– Businesses must take the time to understand their technical capabilities and the data architecture that underpins their services.

When it comes to uncertainty, preparation is key. If businesses are taking control of their own data organization and performing all the necessary due diligence to understand how and where their data is stored, they’ll be in a good place to face rising levels of uncertainty.

 

Building Trust in CX

Taking data security seriously isn’t just a regulatory requirement; there are consequences for Customer Experience as well. Customers take trust seriously. A business that looks after its data is likely going to look after its customers.

Data breaches, when they affect major companies, become global news. There’s no way to cover up mistakes; if your company suffers a data breach, your customers are going to know, and they’re going to take their business to competitors. In Customer Experience, trust matters. A single data breach can undermine a reputation built up carefully over decades.

Similarly, regulatory shifts can necessitate expensive restructuring. If you suddenly find your organization in violation of regulation, scrambling to adapt can be a costly and time-consuming process. By preparing now, you can save yourself time and money.

What matters is that you take control of your data strategy. It’s not enough to blindly trust in the cookie-cutter strategies of hyper-scalers. You need to understand your data, understand the regulatory environment, and work with a partner who’ll help you navigate uncertainty.

At Content Guru, we have two decades of experience designing resilient Customer Experience solutions for highly-regulated sectors. We’re the only cloud CX provider trusted by mission-critical emergency services. We’ll monitor regulations as they evolve, and ensure that your customer communications are always compliant. We always use in-nation data centers, ensuring that your customers’ information never crosses national borders.

Want to learn more about how the use of data in the contact center is changing? Discover our article on The Customer Data Platform and the Future of CX.

Key Questions on Expanding Data Boundaries in CX

  1. Why is the growth of AI and IoT creating new data challenges for customer experience?

AI and Internet of Things (IoT) technologies are generating unprecedented volumes of personal and operational data in real time. This increases pressure on businesses to securely store, process, and govern data while complying with evolving regulations and maintaining seamless, personalized customer experiences.

  1. What does data sovereignty mean in the era of public cloud and smart devices?

Data sovereignty refers to the requirement that data is governed by the laws of the country in which it is stored or processed. As cloud infrastructure becomes tied to physical locations and national jurisdictions, organizations must understand exactly where their customer and IoT data resides to avoid regulatory and legal risk.

  1. How can organizations prepare for increasing regulatory uncertainty around data?

Organizations should take control of their data strategy by strengthening cybersecurity, developing a clear geographic data storage approach, and performing rigorous due diligence on their data architecture and technology partners to ensure long-term compliance and customer trust.