2026 Data Privacy Forecast: What Legal Professionals Need to Know

As a leading provider of litigation support services, U.S. Legal Support keeps a close watch on legal industry trends and needs. Each year, we conduct an in-depth litigation trends survey to collect and analyze data that helps us understand your challenges, including data privacy and cybersecurity. This year, more than 2,000 legal professionals and leaders from single-market, regional, and AmLaw firms and, to a lesser extent, Fortune 1000 organizations, participated. 

We found that data privacy continues to dominate litigation support priorities, as firms navigate increased cybersecurity threats, complex regulatory landscapes, and the rise of AI-driven legal technology. Our 2025 survey results highlight how firms are striking a balance between compliance and efficiency as they prepare for a more connected, AI-integrated future.

Below, we outline the leading data privacy and cybersecurity trends shaping litigation support for 2026, highlighting how firms’ priorities have evolved from previous years and what these shifts reveal about the industry’s direction.

Survey Participant Demographics and Roles

This year, we had a total of 2,011 respondents, of which 71.51% were from single-market or regional law firms and 17.3% were from Am Law 100 firms. In addition, 4.08% of respondents were from Fortune 1000 organizations (the remaining 7.11% indicated “other”).

The majority of legal professionals identified their role as: 

• Legal Assistant (33.17%) 
• Paralegal (31.48%)
• Partner (4.82%)
• Managing or Senior Partner (4.33%) 
• Attorney (6.81%)
• Associate Attorney (5.67%)

The respondents also work in a diverse array of practice areas, with most specializing in:

• Personal Injury (38.59%)
• Insurance (27.95%)
• Medical Malpractice (17.01%)
• Labor and Employment (13.82%)
• Construction (13.48%)
• Contracts (12.93%)

In addition to these practice areas, we also heard from legal professionals specializing in real estate, product liability, class actions, intellectual property disputes, environmental law, securities fraud, and other niche areas. 

Data Privacy Remains a Core Vendor Requirement

We don’t see significant changes year-over-year between our 2024 and 2025 surveys—data privacy remains a top-of-mind priority when selecting vendors.

2025 Key Findings

Respondents continued to emphasize the importance of vendors providing proof of their data privacy protocols through documentation and independent audits. 

• Data privacy policy – 70% of respondents prioritized a data privacy policy when vetting vendors.
  
• Healthcare-grade security standard – 50.5% required HIPAA compliance with an independent audit.
  
• Encryption – 45% required end-to-end encryption.

Forward Look to 2026

As AI and cloud-based collaboration tools expand, firms will continue to demand documented privacy policies and certified compliance. Expect a new focus on AI data governance as vendors incorporate automation into their workflows.

In 2026, data privacy will no longer be a differentiator; it will be the baseline. Vendors will need to demonstrate privacy by design and provide proactive compliance verification to stay competitive. 

We recommend vetting current and potential vendors for protocols like: 

• 24/7 support by a network and security operations center 
• Use of redundant datacenters 
• SOC 2 Type 2 security compliance including independent audits
• HIPAA compliance, including independent audits
• End-to-end encryption of all transmitted files
• Implementation of NIST Cybersecurity Framework policies, procedures, and controls

Cybersecurity Becomes an Operational Imperative

While some features of litigation support vendors may be difficult to compare objectively, identifying specific markers and protocols is imperative when it comes to cybersecurity. 

2025 Key Findings

Our survey revealed that 21% of firms experienced a cyberattack within the past year, consistent with the 2024 findings. Our findings are also consistent with other 2025 surveys. For instance, Law.com reports that one in five U.S. law firms experienced a cyberattack in the past year, and nearly 10% lost or suffered data exposure.¹

And it’s not just about ransom demands or other monetary goals—firms representing high-level political figures have been targeted recently by “China-nexus threat clusters” to access data “related to U.S. national security and international trade.”²

As to cybersecurity practices: 

• 72% of respondents confirmed having a formal data security policy
• 71% reported compliance with recognized standards (HIPAA, SOC 2 Type 2, GDPR)
• 70% consider data privacy policies essential in vetting tech vendors

Forward Look to 2026

Cyberattacks are expected to become more sophisticated, targeting litigation data. Firms will likely move toward continuous monitoring and cybersecurity expansion to strengthen resilience.

2026 will mark a shift from reactive security measures to proactive risk management, integrating cybersecurity as an ongoing operational process.

Vendor Consolidation to Minimize Exposure

Firms are increasingly identifying vendor reduction as a method to lower risk and improve performance. 

2025 Key Findings

We found that 54% of firms use a limited number of vendors in order to: 

• Control costs 
• Minimize data exposure
• Improve compliance oversight
• Increase efficiency

Forward Look to 2026

Expect more firms to centralize litigation support partnerships, prioritizing single-vendor ecosystems that streamline compliance reporting and ensure unified data protection protocols.

Vendor consolidation is evolving from a cost-control measure into a privacy strategy, reducing the number of data transfer points and enhancing visibility into data security.

Privacy Governance Meets AI Integration

The integration of AI tools has the potential to introduce more or different threats in regards to protecting your data. We asked firms about the safeguards they’re establishing to govern privacy and overcome bias in the AI era.

2025 Key Findings

Just over a third of firms (35%) report having conducted AI training for their teams.

Among firms citing specific AI safeguards currently in place:

• 33% name training and education 
• 23% cite internal company policies 
• 30% rely on human oversight 
• 14% utilize a provider‑vetting process

On addressing AI bias/fairness, respondents most often cite: 

• Human oversight (31%) 
• Training (28%)
• Third‑party audits (9%)

Notably, the share stating they aren’t using AI decreased year over year (from 49.13% in 2024 to 36.88% in 2025 for the safeguards question), signaling a gradual increase in governance uptake alongside adoption.

Forward Look to 2026

Expect firms to formalize AI governance frameworks (clear usage policies, approved tool lists, disclosure practices) and expand role‑based training beyond pilots as AI becomes embedded in discovery, records workflows, and trial prep.

Privacy and AI governance are converging. In 2026, clients will expect documented AI policies, trained teams, and auditable guardrails, not just general assurances.

Preparing for Regulatory Change and Client Expectations

Once your firm has a handle on how AI will affect your internal landscape, there are two major external audiences to consider—regulatory agencies and clients. What will your clients want to know about your firm’s relationship to AI and generative AI? 

2025 Key Findings

Our survey provided detailed insights into client communications, encompassing demand, expectations, sentiment, and current practices. 

• Client communication practices – Transparency with clients about AI use is uneven: 39% do not communicate AI use to clients; 16% do; 13% indicate they communicate “sometimes” (and 32% don’t use AI).

• Client demand for disclosure – Expectations are unclear. 53% of respondents are unsure whether clients expect disclosure of AI use, 16% say always, 12% say sometimes, and 11% say never.

• Client sentiment – What are clients thinking about AI use by their firms? 11% of respondents say clients are interested, 12.5% say they have concerns, and 8% report both (69% say clients haven’t mentioned it). 

• Implementing formal privacy frameworks – To cover day‑to‑day workflows, firms report considering HIPAA (75.%), SOC 2 Type 2 (17%), GDPR (12%), and BIPA (7%) in their litigation support processes.

Forward Look to 2026

Keep an eye on state guidelines and professional association opinions as the use of AI and generative AI continues to grow. For instance, the ABA Standing Committee on Ethics & Professional Responsibility issued Formal Opinion 512, Generative Artificial Intelligence Tools, in July 2024, but such guidance is likely to grow and shift as AI tech continues to develop and be integrated in the legal industry.³

Expect OCG updates and engagement‑letter clauses that require: 

• Privacy standard attestation on HIPAA, SOC 2, and other alignment
• Clear AI‑use disclosures and approved tool lists
• Evidence of data handling controls including audit trails, retention policies, and vendor due‑diligence records

Firms that standardize disclosures and map their data flows will be better positioned for client audits and evolving state privacy rules.

Regulatory alignment is becoming client‑visible. In 2026, firms will need two playbooks: one for privacy standards in practice (HIPAA/SOC 2/GDPR/BIPA) and one for transparent AI disclosures that clients can understand and trust.

Preparing for 2026 and Beyond

The 2025 data confirms that data privacy remains the foundation of litigation support operations. In 2026, the focus will shift toward proactive cybersecurity management, AI governance, and vendor consolidation to create secure, compliant, and transparent ecosystems.

U.S. Legal Support’s industry-leading services are built to meet these evolving privacy and security standards. By integrating robust compliance frameworks and secure technology solutions, we empower legal teams to protect sensitive data while maintaining efficiency and confidence in 2026 and beyond.

We offer court reporting, realtime transcription, interpreting, records retrieval, organization and analysis, process serving, AI-powered medical records summarization, litigation consulting, and trial support, including voir dire and jury research and consulting, mock trials, witness preparation, trial graphics, demonstratives, animations, and trial presentation and technology services. 

Contact us today to discuss how we can help with your litigation support needs.

Sources: 

1. Law.com. One in 5 US Law Firms Hit by Cyberattacks in the Past 12 Months, Study Finds. https://www.law.com/international-edition/2025/07/01/one-in-5-us-law-firms-hit-by-cyberattacks-in-the-past-12-months-study-finds/
2. The Record. Major US law firm says hackers broke into attorneys’ emails accounts. https://therecord.media/us-law-firm-hackers-breached-email
3. American Bar Association. ABA Ethics Opinion on Generative AI Offers Useful Framework. https://www.americanbar.org/groups/business_law/resources/business-law-today/2024-october/aba-ethics-opinion-generative-ai-offers-useful-framework/