The urgency is escalating. Enforcement is already underway. On May 12, 2025, the Federal Trade Commission (FTC) issued a proposed order requiring Workado to stop marketing its AI detection products as accurate — unless it can provide reliable, evidence-based proof. The order will remain in effect for 20 years and will be enforced by the FTC through ongoing monitoring and compliance checks.
Clearview AI recently settled a class-action privacy lawsuit worth an estimated $50 million, while state and federal regulators are bringing enforcement actions against AI companies under their authority to enforce privacy and consumer protection laws.
Amid the uncertainty, proactive organizations are preparing now. 61% say they feel prepared or very prepared for the EU’s AI Act, and 57% for the Colorado AI Act. This AI-ready segment isn’t just compliant — they’re outperforming. On average, they score 16 points above the 2025 TrustArc Global Privacy Index Grand Mean.
The era of optional privacy is over — even for the smallest players. A privacy wave is sweeping through organizations of all sizes, and the acceleration is striking.
Nine in ten medium and large companies already have Privacy Offices — a figure unchanged from last year. But among companies under $50M, adoption surged from 31% in 2024 to 87% in 2025. That’s nearly a threefold leap in just one year.
agree “when it comes to privacy, we should be doing more.”
And there are other indicators of privacy maturity. Only 3% of companies are scaling back privacy roles. In contrast, 50% anticipate growing demand, and 54% agree or strongly agree that “when it comes to privacy, we should be doing more.”
With regulations expanding and risks intensifying, organizations big and small now view privacy as a strategic, long-term investment — not a regulatory afterthought.
Purpose-built privacy tech is no longer a luxury — it’s the performance engine behind leading programs. The tools organizations prioritize are directly correlated with Privacy Index success.
Vendor risk, in particular, is emerging as a top motivator: 38% cite Vendor Management & Assessments as a privacy challenge, and they’re responding by scaling implementation.
The payoff is clear. Organizations with seven privacy initiatives in place report an average privacy competence score of 73%, compared to just 44% among those with only one.
That sense of urgency is spurring new investments. Among companies without current commercial privacy solutions, 77% plan to purchase tools for data risk visibility, and 72% are building or planning Trust Centers. Privacy maturity now hinges on tool adoption — not intention alone.
Brand trust reigns supreme. In 2025, a staggering 88% of companies cite it as a top motivator for privacy investments, reaffirming its enduring strategic value.
But there’s a trust gap. Just over one-third (36%) of companies have fully implemented more than three privacy solutions, yet data shows that full implementation drives exceptional results. Organizations with robust implementations report an average Privacy Index score of 82%.
Despite this, only 22% have purchased a comprehensive data privacy management platform. Even among those who rate brand trust as critical, the figure inches up to just 24%.
What moves the needle more than motivation? Experience. Among companies that have suffered a data breach in the past three years, 30% have already invested in an overall platform, and another 40% are very likely to do so. Fear, not aspiration, is currently the stronger catalyst.
When it comes to AI compliance and privacy, they noted unclear regulatory requirements, limited expertise, and resource constraints as the biggest barriers.
High AI readiness correlates strongly with privacy performance: the “ready and aligned” scored 16 points above average on the Privacy Index.
This AI “prepared” segment was more likely than their average peers to have implemented privacy practices such as data inventory and mapping, third-party privacy certifications, data discovery, building and maintaining a Trust Center, and data subject rights requests management and purchased a privacy solution such as compliance assessments or data risk and visibility management.
Programs that take a principles-based, framework approach (as opposed to a strictly rule or regulatory-based approach), garner the highest privacy marks. These leaders stand out for their prescriptive guidance, structured accountability models, and global recognition.
Privacy program audit assessments, such as program audit via TrustArc PrivacyCentral attestation or Assurance annual review.
Completing operational internal risk assessment — measures like business process level risk assessment boost overall program health.
Winners practice accountability by incorporating privacy by design in all initiatives and leveraging automated privacy controls and monitoring, which ensure that core privacy principles are operationalized and tracked.
Centralized privacy teams show the highest levels of privacy competence above hub-and-spoke and decentralized models. This centralized model hinges on organization-wide efforts and strategic prioritization.
Those who’ve purchased the right mix of dedicated privacy tools — as opposed to generalized GRC solutions or ad hoc tools like spreadsheets — report dramatically higher privacy competence. This mix includes Trust Centers, dedicated vendor management, and risk assessments. Organizations that implement key processes and purchase dedicated privacy solutions are more prepared for AI regulations, in particular.
Find out more about how companies stack up. Fill out the form to download the Global Privacy Benchmarks.
TrustArc is redefining privacy for the AI era. With 28+ years of global privacy expertise and assurance services, we deliver the only platform that blends regulatory intelligence, automation, and AI to orchestrate end-to-end data privacy and governance. From automated DSR fulfillment to AI risk assessments and real-time compliance reporting, TrustArc helps organizations embed trust at every touchpoint. Headquartered in the San Francisco Bay Area with a global footprint, our privacy-first approach powers responsible innovation while reducing risk, ensuring our customers lead with confidence in a rapidly evolving regulatory landscape. Discover how at TrustArc.com.
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