AI, Data Privacy to Increase Litigation Costs in 2025

Eighty-five percent of companies globally expect their litigation spending to increase or remain the same in 2025, driven by legal risks related to AI, data privacy, and cybersecurity, says Baker McKenzie. The rapid adoption of AI and digital transformation can generate disputes over regulatory compliance, intellectual property, and ethics in the use of this technology.

According to the Global Disputes Forecast 2025 survey, 60% of organizations consider data security and privacy to represent the top legal risk in the use of AI, while 59% identify ethical conflicts as a significant concern.

The advance of AI has created challenges in multiple industries, from process automation to personal data management. This growth, reads the study, has coincided with an increase in regulations and the tightening of data protection standards globally. In Mexico, the situation is especially critical, as the country ranks third worldwide in the incidence of personal data theft. In 2023, reports of identity theft in Mexico increased by 218%, adding to a 50% increase for women during 2024, according to the Citizen Council for Security and Justice of Mexico City.

In this environment, companies face litigation related to data privacy, the use of deepfakes, AI-generated intellectual property, and the categorization of this technology in existing legal frameworks.

According to Baker McKenzie, the main risk areas facing organizations for this year include:

• Cybersecurity and data privacy (45%): Increasing frequency and sophistication of cyberattacks, coupled with stricter regulations, keep this area as the top legal concern.

• AI (44%): The adoption of AI creates risks in terms of privacy, ethics, and liability in the event of technological failures.

• Employment disputes (32%): Evolving labor laws and the impact of digitization and remote work have increased complexity in talent management.

• Commercial and contractual disputes (25%): The globalization of supply chains and the complexity of commercial agreements have increased litigation in this sector.

• Tax disputes (25%): The international mobility of employees and the increasing complexity of tax regulations represent an additional challenge for companies.

Other risk areas include intellectual property disputes (24%), trade and trade-related commercial and regulatory conflicts (21%), and sustainability and corporate governance issues (21%).

The Baker McKenzie survey identifies six specific legal risks arising from the use of AI. The top concern is privacy and data security, noted by 60% of respondents, due to the misuse of personal information by AI models. This is followed by ethical disputes (59%), derived from the lack of transparency in the development and application of this technology, which can generate biases, violations of fundamental rights, and dilemmas in its regulation. Third, the impact on intellectual property (55%) represents a growing challenge, as questions arise about the ownership of AI-generated content and the rights over the models themselves.

Another critical aspect is the legal classification of AI (46%), which still lacks a uniform regulatory framework and faces difficulties in integrating it into existing legislation. In addition, the use of AI for the creation of deepfakes and fraud (43%) poses significant risks, especially in sectors such as cybersecurity and personal data protection. Finally, the poor performance of AI (36%) raises concerns about its financial and reputational impact for companies, as errors in its performance can result in incorrect or biased decisions, with legal and operational consequences.

In addition, rapid digitization and lack of knowledge about the impact of AI on the work environment generate new tensions. The Global Workforce of the Future report by Adecco Group reveals that only 40% of workers are confident that their leaders are knowledgeable enough about AI to understand its risks. The lack of clear regulation and indiscriminate use of AI-based tools could lead to legal disputes over labor rights and data protection compliance.

AI adoption is increasingly perceived as a necessity. The World Economic Forum's Future of Jobs Report 2025 says that 60% of organizations believe that access to advanced technologies will be key to their growth between 2025 and 2030. However, legal uncertainty and lack of adequate technology governance strategies could increase litigation and exposure to regulatory sanctions.

Claudionor Coelho, Chief AI Officer, Zscaler, tells MBN that AI will be a determining factor in the cybersecurity of the future, especially Generative AI, facilitating the detection of advanced digital threats and personalizing data protection.