2024 saw the highest-ever average cost of a data breach—USD 4.8M—a 10% increase from 2023! That’s a frightening number that can permanently damage most companies. And although data protectors are evolving, attackers are doing the same, particularly with artificial intelligence becoming even more prominent.

Data theft, corruption, and unauthorized access have become rampant recently. With the rate of data breaches increasing over the years, businesses and individuals alike need to intensify data security in the coming years.

In this article, we will highlight some key data security 2025 predictions based on trends and expectations from the industry.

1. Increasing AI investment

According to a recent study from Ernst & Young, up to 95% of senior executives say their organization is already investing in AI. These corporations are not stopping because the survey findings indicate investments in AI will double to around $10 million in the coming year.

Moreover, Gartner’s research also supports the projected increase in AI investments. According to the forecast, global end-user spending on information security is expected to reach $212 billion in 2025, an increase of over 15% from 2024. So, not only are companies doing their best to protect their data and information, but people will continue to make significant investments, particularly in generative AI, to secure their information.

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2. The Growing Threat of Ransomware

Several reports show that ransomware has grown recently, particularly in 2024. Ransomware is known for locking users from their computers, systems, or networks and is said to have garnered an 81% year-to-year growth from 2023 to 2024.

When this happens, users only get access back when a ransom is paid. Sadly, some lose most of their information even after paying the ransom. Considering the rise and amount of successful ransomware operations that have happened in the past year, we predict it will continue to be more common in the coming years.

3. Increased Priority for Staff Development

Did you know human error is considered one of the leading causes of data breaches in several business institutions?

In a bid to enhance data security, we predict that these institutions will invest in staff development in the coming years. Investing in staff development will help these institutions educate their staff about the best practices for data security and its importance.

Furthermore, it will help the staff be more informed and involved in the organization’s data security. Consequently, this is a plus, as it would help create a culture of security consciousness at work.

4. Increase in Data Breach Insurance

Think about it: if a data breach costs almost $5M, it’s only natural for companies to seriously consider ways to protect themselves. This is most likely going to come through data breach insurance.

As the predicted rise in data breaches continues, data breach insurance will also rise. This insurance will primarily help protect organizations from the damage caused by data breaches. However, to be covered, companies will probably need to prove that they are committed to implementing data security processes and technology.

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5. Challenges of Quantum Computing

In our Data Security 2024 prediction, we predicted the rise of quantum computing. Just in April 2024, this prediction was backed by McKinsey & Company, claiming the technology would create trillions of dollars in value from 2024 through the next decade.

Some breakthroughs in Quantum Computing in 2024 include:

  • Increased Qubit Stability and Error Correction
  • Advancements in Quantum Algorithms
  • Increased access to quantum computing due to commercial quantum cloud services

However, while this growth will continue, and we believe quantum computing will be used to solve complicated issues, it could threaten existing encryption techniques.

Therefore, organizations might need to make provisions for quantum-resistant algorithms to protect sensitive data effectively.

The challenge of balancing investor expectations and optimism with the need to continually innovate may also exist.

Due to these reasons, we predict that quantum computing will bring both opportunities and challenges for data security in the coming years.

6. More Security Options for Remote Work

While some companies are returning to pre-COVID work arrangements, others have stuck to their guns and continued the remote culture. However, we all know the Work From Home (WFH) culture has unique challenges, particularly security.

Hence, we predict that organizations in the quest to secure their data will invest more in solutions in 2025 and beyond. These solutions include virtual private networks (VPNs) and secure access service edge (SASE) technologies.

This way, organizations can protect their data and provide a flexible work environment.

7. Improvements to Cloud Security

There has been a massive shift towards cloud computing; therefore, securing cloud environments is crucial. Attackers are getting smarter and gaining more technological advancements.

In 2025, we predict that there will be better encryption methods and improved monitoring. Organizations will also ensure that the shared responsibility model will hold the provider and the user accountable for data security.

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8. Increased Attention to Data Privacy Laws

Companies, countries, and continents are also responding to the need for data security. For example, the NIS2 directive in Europe is already in effect, as member states must have transposed it into law by October 17, 2024.

North America, particularly the United States, isn’t left behind. For example, at least eight new data privacy laws will be in effect in 2025 alone.

They include:

This shows a trend—increased attention to privacy laws. In fact, non-compliant companies may face fines of up to 4% (or more) of their global revenue, making the cost of ignoring these regulations severe.

Prioritizing your Data Security with Proactive Risk Management

Although data security is a constantly changing field, the above predictions for 2025 and beyond emphasize the importance of preventative measures. When proactive in addressing vulnerabilities, your business can be safe from data security risks.

BigID helps you achieve complete data control over your security posture and streamline data discovery, labeling, access, and policy compliance.

Want to learn more? Schedule a one-on-one with our security expert today.