7 trends shaping data privacy in 2025

Data privacy refers to the right of individuals to control how their personal information is collected, used, shared and stored. It includes data such as names, addresses, financial information, medical records and biometric data.

Data privacy is governed by laws and policies that define how organizations must handle personal data and the rights individuals have over it. These include the General Data Protection Regulation (GDPR), California Consumer Privacy Act (CCPA) and Health Insurance Portability and Accountability Act (HIPAA).

In the modern, data-driven era, data privacy is incredibly important. It can help prevent identity theft and fraud, build trust between users and organizations, protect freedom and autonomy and ensure compliance with laws and regulations.

What’s more, the growth of artificial intelligence (AI) and emergence of generative AI and agentic AI, which both rely on large amounts of data to function effectively, is compounding the significance of data privacy as organizations across the world increasingly adopt and use AI technology.

Here’s how the modern landscape is reshaping data privacy

1. AI adoption

“One of the biggest trends shaping data privacy in 2025 is the accelerating convergence of AI governance and privacy compliance,” says Ryan Johnson, chief privacy officer and principal of The Technology Law Group. “As organizations deploy generative AI tools, they must grapple with challenges like data minimization, model transparency and how personal data is processed within automated systems.”

While generative AI is rapidly transforming industries, increased adoption introduces a fundamentally different risk landscape for data privacy, adds Tui Leauanae, solutions architect at Protegrity. “Traditional security frameworks are slowly dissipating as data flows dynamically between systems, tools and users. The widespread use of unstructured data also creates significant vulnerabilities when not properly classified or governed, causing generative AI to quickly become a liability to organizations rather than an asset.”

2. New regulations and legal frameworks

Global data privacy laws are evolving and expanding rapidly. In the US, the Privacy Act Modernization Act of 2025 is under discussion to modernize government data collection and give individuals stronger legal rights. Elsewhere, the EU’s “ProtectEU” initiative seeks to enable lawful access to encrypted data for law enforcement by 2030, raising privacy and security concerns.

Recent issues, such as Instagram’s real-time Map feature, amplify privacy dangers, particularly around child safety and data misuse, sparking legal pushback. Meanwhile, many companies still fail to honor opt-out requests despite legal mandates.

“One of the biggest shifts this year is the new DOJ rule on cross-border data sharing under Executive Order 14117,” says Sarah Hospelhorn, privacy expert at BigID. “It sets strict rules on who can access sensitive US data, where it can go and how companies protect it.”

This is a real change in how cross-border governance works, she adds. “It’s about cutting exposure, holding companies accountable and keeping data out of adversarial hands. It’s pushing organizations to move from just checking compliance boxes to actively enforcing data sovereignty. Almost every multi-national company is contending with this new DOJ rule on cross-border data sharing.”

3. Data breaches

The regulatory lag is not without consequence, as 2025 is experiencing a higher number of data breaches, says Leauanae. “The Identity Theft Resource Center reported 1,732 publicly disclosed data breaches in the first half of 2025, marking a 5 perent increase over the same period in 2024.”

This puts a spotlight on the growing need for proactive tools to prevent breaches. Prompt injection attacks and misconfigured AI infrastructure can lead to damaging reputational and regulatory risks.

4. Decentralization of identity and tokenized consent

“With decentralization of identity, we’re seeing a move away from siloed corporate data warehouses toward self-sovereign identity models where individuals control their own digital credentials, often secured via blockchain,” says Nathaniel Bradley, CEO of Datavault AI. This shifts the paradigm from companies owning user data to users granting temporary, revocable access.

There’s also the issue of tokenized consent, Bradley adds. “Web3.0 is enabling consent to be recorded, tracked, and even monetized via smart contracts. This means privacy preferences aren’t static legal text; they’re executable logic that travels with the data, ensuring trust without sacrificing utility.”

5. Greater consumer control and accountability

Consumer demand for more control over their data continues to rise sharply. Data subject requests (DSRs), which allow users to delete and access data, are soaring. Meanwhile, there’s growing concern over data brokers using “dark patterns” to hide opt-out or deletion pages, prompting legislative scrutiny. 

6. Quantum computing

The emergence of quantum computing is a double-edged sword for data privacy, promising groundbreaking advancements in data security but also introducing formidable risks. “Organizations are increasingly advocating for the early adoption of quantum-resistant security solutions, such as tokenization, to protect data before threats emerge,” says Leauanae.

To stay ahead, executives must embrace a data-centric security solution that safeguards data throughout its entire lifecycle, Leauanae adds.

7. Data privacy training

Data privacy training is another key trend shaping the privacy landscape in 2025. It’s not just a buzzword; it’s becoming a foundational element across organizations for building a robust privacy culture and resilience.

According to the TrustArc 2025 Benchmarks Report, 71 percent of organizations now provide broad training across roles, moving beyond mere compliance to raise awareness of evolving risks such as AI misuse. Global trend reports also reinforce this, indicating that organizations are ramping up investment in security awareness training to foster a privacy- and security-first mindset.

“Ultimately, the companies that will win in this environment are those that treat privacy not as a compliance checkbox but as a core feature and value proposition. Data privacy has become a competitive differentiator, and in Web3.0, trust is the currency!” says Bradley.

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