Hey, Industry Trailblazers! Last month, we explored the incredible AI tools transforming our operations. With 86% of employers expecting AI to redefine their businesses by 2030, the pace of change is exhilarating—offering unprecedented opportunities for humanity. This month’s theme—Advocacy & Regulations—reminds us that before we harness AI’s power, we must fortify our data security. From this stable foundation, we can then shape how AI evolves in our industry.
Securing Trust in a Data-Driven Era: A Global Shift in Governance
A clear theme emerged: while the AI race accelerates, the societal responsibility to govern it thoughtfully becomes more urgent. OpenAI is potentially acquiring an AI-first device startup for $6.5 billion, coinciding with Google's Project Astra. These initiatives involve AI systems designed for wearable devices like eyewear or ambient tech, enabling continuous and personal data collection.
This kind of integration flags a massive concern: pervasive data collection. As devices become more embedded in our lives, privacy safeguards and transparent data use policies must evolve with them. But the current landscape? It’s not keeping up. There's still a "lack of adequate regulation" for AI—a gap that has to close, and fast. What's needed is proactive involvement from the very tech leaders building these tools. They must help establish frameworks that balance innovation with ethics, usability with transparency.
And these conversations are no longer theoretical. Europe’s GDPR fines have surpassed €5.65 billion. State laws in the U.S. are expanding. The risks for ignoring cybersecurity and compliance are not just financial—they’re existential.
U.S. Regulatory Landscape: Patchwork Progress with Real Consequences
While a comprehensive federal AI law remains in development, meaningful steps have been taken. President Biden’s 2023 Executive Order on Safe, Secure, and Trustworthy AI and the NIST AI Risk Management Framework both signal a serious national interest in guiding AI with guardrails.
Meanwhile, states are leading the charge on data privacy:
California's CCPA/CPRA extends rights to consumers, employees, and B2B data subjects—impacting how pallet companies manage all personal data.
Virginia, Colorado, Utah, and Connecticut have passed similar legislation, nudging companies toward a new norm.
Colorado now requires bias audits for high-risk AI systems, such as those used in hiring.
This evolving regulatory attention on both data and AI underscores a critical immediate step for every pallet company, as these laws affect your operations directly—especially if you're storing employee info, communicating with clients, or using automated tools to assist with scheduling, quoting, or procurement.
Why Cybersecurity Must Come First
Before your team deploys AI, starts experimenting with automation, or integrates AI-enabled platforms, take a step back: How secure is your current system?
Consider this:
MKS Instruments lost $200 million from a ransomware attack.
Schumag AG, a German manufacturer, filed for bankruptcy after a similar incident.
Over 65% of manufacturers have experienced ransomware events according to Sophos': The State of Ransomware in Manufacturing and Production 2024 report.
It’s clear: cybersecurity is no longer an IT issue—it’s a business continuity issue. What’s more, state privacy laws demand that all personal data—from customers to contractors—is handled with diligence and precision. Investing in robust cybersecurity is also investing in critical future skills. The WEF "Future of Jobs Report 2025" highlights "AI and big data," "networks and cybersecurity," and "technological literacy" as the top three fastest-growing skills global employers are seeking by 2030. Building these capabilities is essential for navigating the tech and regulatory road ahead and gives us invaluable insights on areas we should focus our businesses on.
Pro Tip: If hiring a full-time IT team isn’t feasible, consider managed service providers. Many offer cybersecurity, white hat testing, desktop support, and systems admin services tailored for SMBs in manufacturing, crucial for protecting everything from your inventory management systems to your automated production lines.
Responsible AI Adoption: A Step-by-Step Framework
Once your foundation is secure, you can begin exploring AI more confidently and ethically.
Here’s how:
1. Fortify First: Prioritize strong cybersecurity practices as a non-negotiable baseline.
2. Know Your Data: Audit your data flows. Know what you collect, where it lives, who has access, and how it might be used by AI tools.
3. Modernize Policies: Update your privacy statements and internal policies to reflect new tools, customer expectations, and state laws.
4. Evaluate Vendors: Choose AI partners and software providers who are transparent about how they use your data and meet compliance standards.
5. Educate Your Team: Globally, 77% of employers expect to reskill workers for AI collaboration. Build technical fluency and data awareness within your staff.
6. Be an Advocate: Join discussions about governance. Participate in organizations like the WPA. Regulation shouldn't be done to us—it should be done with us. Our industry, with its unique operational realities and role in the supply chain, has crucial insights to offer in guiding practical and effective tech policies.
Join the WPA Advocacy Conversation
The Western Pallet Association’s State Advocacy Committee is a real opportunity for you to influence how our industry prepares for the future. If you want to ensure that policies remain practical and aligned with how we operate, your voice is needed.
Remember: We don't just respond to disruption. We prepare for it, build on it, and lead through it. The policy decisions we make today will define AI’s impact tomorrow.
I’ll leave you with a powerful reminder from Winston Churchill, “The price of greatness is responsibility."
Until next time, keep innovating, keep advocating, and keep Bridging the Gap!
P.S. Feeling new to the intersection of advocacy, regulations, and tech—or perhaps all three? A helpful way to get started and distill the main ideas is to ask your favorite AI assistant to summarize this article. That AI summary can be your springboard: use it to spark new conversations, brainstorm solutions, expand your understanding, or dive deeper into the topics that resonate most!
Foundation First: Why Cybersecurity is Key to AI Readiness and Regulatory
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