The Double-Edged Sword of AI: Preparing for Cybersecurity Challenges in 2025

Editor’s Note: As we turn the page to 2025, it’s clear this past year was a defining one for HaystackID® and the broader legal technology industry. The milestones highlighted in this article takes a forward look at what to expect in the 2025 cybersecurity landscape, focusing on AIs impact on cyberattacks and defense strategies. By weaving in real-world events from 2024 and expert insights from HaystackID leaders, the piece emphasizes the urgency of proactive measures to combat increasingly sophisticated threats. Throughout the article, experts encourage industry professionals to thoughtfully balance the dual nature of AI—highlighting its potential for efficiency while acknowledging the risks of misuse. As the cybersecurity sector braces for another challenging year, this article equips readers with actionable insights and encourages forward-thinking approaches to preserve the integrity and security of their data.  


The Double-Edged Sword of AI: Preparing for Cybersecurity Challenges in 2025 

By HaystackID Staff

If 2025 is anything like the last 12 months, it’ll be a big year for cybersecurity professionals. 2024 had no shortage of notable cybersecurity events. July certainly brought the heat, with cybersecurity firm CrowdStrike announcing a defective update that disrupted Microsoft systems worldwide and impacted different sectors, including air travel, healthcare, banking, and emergency services across several countries. In the fall, ZircoDATA, a data firm contracted by Australia’s Department of Home Affairs, encountered a cyber attack that impacted 200 Australian organizations, including government entities and healthcare providers. The breach was pervasive and exposed sensitive information like details of family violence victims, student records, and other critical data from Monash Health. Then, on December 30, a mere two days before 2025, Microsoft’s cybersecurity team uncovered a network of compromised TP-Link routers being exploited by Chinese threat actors in October 2023, which escalated into a full-scale investigation by three US government departments. 

This past year was not all doom and gloom. In 2024, the Tallinn Mechanism concluded its first year of operations, mobilizing over $210 million in targeted assistance for Ukraine’s digital defense infrastructure. A united front also took form in the North Atlantic Treaty Organization (NATO), offering funding to startups to solve cybersecurity challenges in critical infrastructure.  

 As we embrace this new year, one full of innovation and new challenges, HaystackID® experts shared their predictions for 2025 so your organization can position themselves for sustained success.  

A Lethal Tool in CyberCriminals’ Arsenal: AI 

“In 2025, corporations, regardless of industry, will face increased AI-enhanced cyberattacks, forcing a shift from reactive security measures to proactive incident response and resilience strategies,” said Matthew L. Miller, Esq., Senior Vice President of Information Governance and Data Privacy at HaystackID, to Law Journal Newsletters’ “What Will 2025 Bring for Legal Tech?” 

These attacks often exploit generative AI tools to craft highly targeted phishing campaigns and manipulate digital ecosystems. According to Newsline by HaystackID®, the Zscaler ThreatLabz 2024 Phishing Report revealed a nearly 60% year-over-year increase in phishing attacks, many driven by generative AI. Kirsty Kelly, Beazley’s Chief Information Security Officer, warned that these campaigns are “getting very personal,” leveraging vast amounts of data to bypass traditional defenses. 

 These attacks are indeed getting personal and relatively crafty. In a 2024 webcast focused on mitigating your risk and repercussions from business email compromise, HaystackID’s Michael D. Sarlo said, “GenAI has given these dangerous threat actors a lot of capability to target many different organizations in mass. It makes them look more lifelike and act and sound that way via email. It also gives them much more firepower to hit multiple organizations, accounts, and individuals simultaneously.”   

This shift necessitates investment in AI-powered defensive solutions capable of real-time threat detection and automated response. With tools like HaystackID’s Core Intelligence AI™, organizations can use advanced GenAI-enabled workflows to drive an efficient document review while keeping their data safe. 

AI Is Not All About Extremes: Find the Balance  

Like many things in life, AI is not always “good” or “bad.” When used appropriately, it can benefit industry professionals. You can’t let AI go rogue; you need to balance efficiency with human oversight, according to HaystackID’s Chief Client Experience Officer Adam Rubinger, who said, “Ensuring the accuracy and transparency of AI outputs, maintaining strong human oversight, and safeguarding defensibility in the process will be critical.”  

While AI streamlines processes like eDiscovery and contract analysis, its misuse in creating complex cyberattacks emphasizes the need for robust human-in-the-loop systems. To combat AI’s misuse, invest in training teams to identify and address vulnerabilities while using this technology.  

Let’s Get Down to the Dollars and Cents of It All 

Cyberattacks can cost organizations a pretty penny, especially if they occur for an extended period without their existence being discovered. A data breach can cost an organization almost $5 million on average. Not only are breaches going up in cost, but so are regulatory penalties and cyber-insurance premiums.   

“Companies will face rising costs in direct losses and compliance with stricter data privacy regulations, requiring greater investment in advanced protection and rapid breach recovery measures,” predicted Anya Korolyov, SVP of Cyber Incident Response and Advanced Technologies Group at HaystackID. 

Data protection is critical, as a lapse in protocol carries steep consequences. In the fall of 2024, Ireland’s Data Protection Commission fined LinkedIn $335 million for processing user data without proper consent, violating the GDPR and marking the largest levied against a tech company for GDPR violations. Companies are under increased scrutiny, which will not likely ease up as we move forward throughout the year. 

Christopher Wall, HaystackID’s Data Protection Officer and Special Counsel, Global Privacy and Forensics, told Law Journal Newsletters that he foresees the year bringing significant data protection developments in four core areas: 

1). More AI governance and regulation, as organizations grapple with GenAI’s and machine learning technologies’ privacy implications, 

2). Development of privacy-enhancing technologies like differential privacy and homomorphic encryption to balance data utility with individual privacy,  

3). Evolving global data protection laws, including stricter enforcement of existing regulations (in the EU, California, and jurisdictions with more mature frameworks) and more US state laws passed and taking effect, and  

4). Maybe — just maybe — we’ll get closer to a comprehensive US federal data privacy law to reconcile the growing cacophony of state privacy laws.   

“Looking ahead, the growing frequency of data breaches and escalating privacy concerns will drive a surge in legal tech solutions centered on data security, privacy compliance, and breach response. As these technologies evolve, forensic experts will face increasing pressure to strike a delicate balance between conducting thorough investigations and respecting individual privacy rights,” said John Wilson, Chief Information Security Officer and President of Forensics at HaystackID, in a recent interview. “This dual challenge will require innovative approaches to ensure that investigative methods remain both effective and ethically sound.”   

Starting the Year on a Strong and Secure Note  

While cyber risks grow in intensity, there are excellent tools and strategies cyber professionals can deploy to maintain the security and integrity of their data. No one can definitively say what will happen in 2025. Still, we can operate with the information to make the best-informed decisions to safeguard our organizations and stay ahead of sophisticated cybercriminals.  

Join Wall and fellow data privacy experts for our upcoming webcast, “Data Minimization: Why Less is More,” to dig into how to streamline data practices while bolstering compliance and operational efficiency. Save your spot for the February 26 webcast today. 


About HaystackID® 

HaystackID® specializes in solving complex data challenges related to legal, compliance, regulatory, and cyber events. Core offerings include Global Advisory, Data Discovery Intelligence, the HaystackID Core® Platform, and AI-enhanced Global Managed Review powered by ReviewRight®. Recognized globally by industry leaders like Chambers, Gartner, IDC, and Legaltech News, HaystackID prioritizes security, privacy, and integrity in its innovative solutions for leading companies and legal practices worldwide.

Assisted by GAI and LLM technologies.

SOURCE: HaystackID