Utilizing APIs for Data Integration

"Imagine you are a data integration consultant tasked with designing a solution for seamlessly integrating diverse datasets using APIs. Outline a step-by-step approach that includes: identifying the datasets and their formats, selecting appropriate APIs for integration, planning data transformation processes, ensuring data security and compliance, and automating updates. Provide examples of specific APIs that might be used for different types of datasets, and suggest best practices for maintaining data integrity and scalability. Your solution should be applicable to a business that handles large volumes of structured data."