The High Luminosity LHC (HL-LHC) era brings unprecedented computing challenges that call for novel approaches to reduce the amount of real and Monte Carlo-simulated data that is stored, while continuing to support the rich physics program of the ATLAS experiment. With the beginning of LHC Run 3, ATLAS introduced a new common data format, PHYS, that replaces most of the analysis-specific formats that were used in Run 2, and therefore reduces the disk storage significantly. ATLAS also launched the prototype of another common format, PHYSLITE, that is about a third of the size of PHYS. PHYSLITE will be the main format for ATLAS at the HL-LHC and aims to serve 80% of all physics analyses. To simplify analysis workloads and further reduce disk usage it is designed to largely replace user-defined analysis n-tuples and consequently contains pre-calibrated objects. Various forms of validations are in place to ensure correct functionality for users. Developments continue towards HL-LHC to improve the PHYSLITE format further.