The way we think about data privacy is shifting fast, and 2025 is poised to be a year of real change. For consumers, that means gaining more control over their personal information (and demanding more from the companies they trust). For businesses, it means navigating an increasingly complex web of regulations, technological challenges, and consumer expectations.
With AI evolving at lightning speed, biometric data being used in ways many don’t even realize, and a patchwork of state laws continuing to grow, it’s clear that the landscape of data management is changing fast. Consumers are more aware than ever of how their data is being collected and used—and they’re ready to hold brands accountable.
Here are the five key data privacy predictions that will shape 2025, as well as the growing trends that businesses and consumers alike will need to navigate.
1. Biometric security will re-enter the conversation
In 2025, we can expect to see biometric security (i.e. facial recognition, fingerprint scanning, and eye-movement tracking) become a significant focus in the privacy landscape. This technology, which was once hailed as a breakthrough in personal security, is now raising serious concerns over consumer awareness and consent.
In 2024, the Australian Privacy Commissioner found that Bunnings Group, a popular hardware chain, had breached Australians’ privacy by using a facial recognition tool that captured the faces of every person who entered a Bunnings store. Although it was used for physical security purposes, there was no way for shoppers to know that their personal and sensitive information was being gathered through a facial recognition system. In turn, there was no way for shoppers to be able to consent to the use of their facial recognition biometrics.
Bunnings wasn’t the only enterprise caught using biometric security in violation of consent. In 2023, the Illinois Supreme Court found the fast food chain, White Castle, liable for damages potentially exceeding $17 billion, following the nonconsensual collection of fingerprints from employees. These cases shed light on a key issue: many people don’t realize that their biometric data is being collected, let alone shared or sold.
By 2025, we can expect to see an increased recognition of biometric data as “sensitive data”, which is typically thought of as social security numbers, medical records, and financial information. The rise in privacy lawsuits, like those against White Castle and Bunnings, will prompt businesses to reevaluate how they handle this highly personal data. Companies that use biometric tools for access control, security, or even employee tracking must be prepared to implement transparent policies that ensure full consumer consent.
2. The push for federal data privacy legislation will continue to stall
While data privacy remains a hot topic in the US, it is unlikely that a unified federal data privacy law will be passed in 2025. Despite bipartisan support for stronger consumer protections, we can expect the battle between federal and state-level regulation to remain unresolved.
With a new administration under President-elect Trump, we anticipate a continuation of the push for state-by-state privacy laws. While Trump has been vocal about shifting decision-making to the states, this fragmented approach creates a complex regulatory landscape for businesses. In fact, 2025 will see a growing number of states passing their own data privacy laws, forcing companies to navigate an even more intricate patchwork of regulations from 19 states… and counting.
Rather than wait for federal legislation, many businesses are likely to adopt a “catch-all” regulation that conforms to the broadest state standards, such as the California Consumer Privacy Act (CCPA). Businesses will need to proactively evaluate which state regulations apply to them, and how to effectively meet the varying requirements across multiple jurisdictions.
3. AI privacy will emerge as a major focus for legislators
As AI continues to dominate the tech world, 2025 will be the year that privacy concerns tied to generative AI models become impossible to ignore. Consumers and lawmakers alike will demand greater transparency regarding how companies use their data to train AI models. Organizations like X, LinkedIn, and Microsoft have all received backlash for training their AI models on user posts and data without consent– but that’s just the beginning.
One of the central challenges with AI privacy is the difficulty of managing data once it has been integrated into an AI model. It’s technically impossible to “delete” information from these systems (LLMs) once it has been used to train a model. This means that companies will have to adopt new, proactive approaches to prevent unwanted data collection in the first place.
On the regulatory front, the Trump Administration is expected to repeal the Biden-era Executive Order on AI, which sought to create a framework for AI development and governance. He has been very outspoken that this will be a priority for him in his second term, and his business affiliations with individuals who have been staunchly against limitations being placed on AI technology make this a sure bet.
While this move will likely spark debate, it will also leave room for individual states to implement their own AI-related regulations. We can expect states to take the lead in developing legislation that governs AI data usage, particularly with regard to sensitive data like biometrics and personal identifiers. The good news is that, for a number of states, these regulations have already been established, giving businesses a blueprint to follow as more regulations likely follow.
4. Consumers will demand more control over their data
One of the most significant trends we’ve seen in 2024—and which will only accelerate in 2025—is the increasing demand from consumers for greater control over their personal data. According to our 2024 Data Privacy Trends Report, the number of data subject requests (DSRs) saw a 246% year-over-year increase, whether that be for deletion, access, or opting out of data sales. This surge indicates that consumers are more informed, more empowered, and less willing to accept companies mishandling their personal data.
As more consumers take an active role in managing their digital footprint, businesses will need to improve their transparency and responsiveness when it comes to data privacy requests. Companies that ignore data privacy preferences will likely see customer attrition and lost revenue.
The trend toward consumer control will also have a ripple effect on how businesses handle tracking and third-party data sharing. A 2024 audit of 5,000 business websites revealed that 75% failed to honor opt-out requests from consumers. This shift toward consumer control highlights the growing gap between privacy expectations and current business practices, emphasizing the need for better compliance with opt-out requests.
“Consumers should be able to rely on businesses to safely and responsibly handle their information, but unfortunately that’s not the world we live in right now. I absolutely predict that more customers will abandon brands because of data misuse in 2025.” – Daniel Barber, CEO of DataGrail
5. There will be more government fines and lawsuits related to consumer data sharing
If 2024 has been any indication, consumers aren’t afraid to take legal action when they feel their data has been unfairly shared with third party entities. In 2025, we can expect a lot more consumer-facing lawsuits and enforcement actions targeting businesses that continue to disregard privacy rights.
As public awareness around data privacy grows, so too will the legal and financial consequences for businesses that mishandle consumer data. We’re predicting a significant increase in class-action lawsuits related to unauthorized data sharing, as well as more government-imposed fines. The regulatory landscape at the state level is tightening, and companies that fail to comply with new consent laws could face hefty financial penalties.
Additionally, data brokers—companies that buy, sell, and trade consumer data—are increasingly under scrutiny. California’s “Delete Act” and laws requiring data brokers to register and disclose their data practices are setting the stage for more nationwide regulations. You can expect these laws to serve as a model for other states and, potentially, for global data privacy standards as well.
Data privacy in 2025 and beyond
As 2025 unfolds, data privacy will continue to be a pivotal issue, with AI, biometrics and consumer rights at the forefront of the debate. From the growing recognition of biometric data as sensitive information to the pressure on businesses to comply with diverse state-level regulations, companies will need to evolve their privacy practices quickly.
Companies shouldn’t wait around to take privacy– and transparency– seriously. Whether they’re under legislative order or not, any modern day business should be evaluating their controls and disclosure practices to not only protect their consumers’ data, but also to protect consumers from feeling blindsided. Without a comprehensive privacy program in place, businesses will find themselves facing both reputational damage and legal consequences.
As we look forward to the future, DataGrail is building for a world where brands can meet consumer privacy expectations with the support of a complete, intelligent and automated data privacy platform and consumers can engage with full confidence that their choices are being respected.
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