General counsel signal rising tech-related legal risks for 2025

A comprehensive survey conducted by Baker McKenzie has revealed that cybersecurity and data privacy have emerged as the leading litigation risks for multinational corporations as they look ahead to 2025.

The findings come from the firm’s eighth annual Global Disputes Forecast, which gathered insights from 600 senior in-house lawyers across major markets including the United States, United Kingdom, Germany, Brazil, Singapore, and Hong Kong.

The survey paints a clear picture of evolving corporate legal challenges, with 45% of respondents identifying cybersecurity and data privacy as their primary concern for potential disputes. Artificial intelligence follows closely behind at 44%, while employment-related issues rank third at 32%. Commercial, contractual, and tax disputes were cited as significant risks by 25% of participants.

Financial projections further underscore these concerns, with 85% of surveyed legal departments expecting their dispute-related expenditure to either increase or remain stable in the coming year. The data also highlights growing anxiety around class actions and regulatory investigations.

“We are at an inflection point where cyber risk is concerned. With technological advancement – such as AI and other drivers for digital transformation – as well as the increased global geopolitical threat, it’s not hard to see why we are witnessing a rapid increase in cyber-attacks right across the eco-system,” notes Vinod Bange, a London-based partner at Baker McKenzie.

The study breaks down specific concerns within each risk category. Among those worried about cyber threats, 70% pointed to investigations and regulatory enforcement actions, including potential fines, as their main concern. Insurance coverage gaps for cyber incidents worry 44% of respondents, while 41% expressed concern about cyber and data compliance issues within their supply chains.

In the AI domain, data privacy and security emerged as the top concern for 60% of respondents who identified AI as a risk factor. This was followed by ethical considerations at 59% and intellectual property disputes at 55%.

Hong Kong-based partner Isabella Liu emphasizes the need for a comprehensive approach to AI risk management: “Companies should remain savvy in monitoring AI developments across legal disciplines – not just IP-related case law and legislative developments, but also existing privacy and sector-specific regulation as well as emerging horizontal AI regulation – to develop a strategy to manage legal risk and maximise opportunities.”

In the employment sector, 42% of respondents highlighted restrictive covenants and non-compete agreements as their primary concern, reflecting ongoing tensions in workforce management and mobility.

The survey’s broad geographic and sector coverage provides a representative snapshot of the legal challenges facing global corporations, with respondents representing diverse industries across six major jurisdictions.