As global trade and the business world move past most of 2025, they are facing one of the most complex dispute landscapes in history. Since the start of the year, geopolitical tensions, rapidly evolving technologies, tightening regulations, and shifting societal expectations have fundamentally altered the risk balance for companies. It is no longer enough to simply pursue competitive advantage; the ability to respond quickly, flexibly, and effectively to unexpected crises has become equally vital.
The Global Disputes Forecast 2025 report by Baker McKenzie provided an important dataset for understanding this complex picture. Based on a survey of 600 senior decision-makers from companies operating in the United States, United Kingdom, Germany, Singapore, Hong Kong, and Brazil with annual revenues exceeding USD 500 million, the results identified the main areas of dispute that companies across various sectors and geographies could expect to face. The research encompassed not only the companies’ own forecasts but also the field observations of more than 1,000 lawyers working across Baker McKenzie’s 74 offices.
Now, as we look at where we stand today, the broad spectrum of risks highlighted in the report — from cybersecurity to AI-driven intellectual property issues, from ESG obligations to post-M&A disputes — has both diversified and, as predicted, deepened.
Six Key Dispute Areas in 2025
- Cybersecurity and Data Privacy Risks
In 2025, the biggest dispute risk for companies, by a wide margin, is in the area of cybersecurity and data privacy. Respondents ranked this as the top concern in terms of both litigation and investigation risk.
Main Drivers:
- Expansion of the attack surface to include the supply chain
- New and stricter regulations in major economies such as the EU, US, and Singapore
- Increased security vulnerabilities due to remote work and third-party service providers
Most Commonly Feared Outcomes:
- Regulatory investigations and fines (70%)
- Gaps in cyber insurance coverage (44%)
- Data compliance issues within the supply chain (41%)
Strategic Impact:
The growing accountability at the board level shows that cyber risk is not only a technical issue but also a strategic one.
- AI-Related Disputes (Data, Ethics, and Intellectual Property)
In 2025, artificial intelligence (AI) presents companies with both major opportunities and significant dispute risks. The report highlights data privacy, ethical violations, and intellectual property rights as the most prominent areas of concern.
Main Drivers:
- Unauthorized use or disclosure of personal data by AI models
- Bias, discrimination, and lack of transparency in AI algorithms
- Ownership of AI-generated content and copyright issues related to training data
Most Commonly Feared Outcomes:
- Data privacy breaches (60%)
- Ethical violations (59%)
- Intellectual property disputes (55%)
Strategic Impact:
The fragmented regulatory landscape complicates companies’ global AI strategies. As a result, taking proactive measures in contracts, data policies, and IP rights management for AI use is of critical importance.
- Employment Law Risks and New Regulations
In 2025, employment law has become an increasingly significant area of disputes for businesses. Legal changes to non-compete restrictions, pay transparency regulations, and a rise in discrimination/harassment cases are substantially increasing legal risks.
Main Drivers:
- Restrictions on non-compete clauses in the US and other regions
- New reporting and disclosure requirements on pay transparency in the EU, US, and UK
- Greater awareness and enforcement of standards on discrimination, harassment, and workplace conduct
Most Commonly Feared Outcomes:
- Litigation over non-compete restrictions (45%)
- Lawsuits related to equal pay and transparency violations (40%)
- Discrimination and harassment claims (40%)
Strategic Impact:
Companies operating across multiple jurisdictions must update their policies to comply with varying employment laws. Both reputational and financial risks make legal risk management in this area a top priority.
- Tax Disputes and Global Mobility
In 2025, one of the most critical tax risks for companies is related to global mobility of employees and the resulting tax obligations. Remote work, digital nomadism, and multinational operations are making tax compliance processes increasingly complex.
Main Drivers:
- Double taxation and tax residency disputes
- Increased scrutiny and documentation requirements for transfer pricing
- Industry-specific taxes and constantly changing indirect tax regulations
Most Commonly Feared Outcomes:
- Tax disputes arising from global mobility (62%)
- Transfer pricing litigation (51%)
- Disputes resulting from sector-specific tax regulations (51%)
Strategic Impact:
Most tax disputes are still resolved through litigation. For companies, the critical step is to develop preventive policies, monitor employee mobility, and support compliance processes with technological tools.
- ESG (Environmental, Social, and Governance)–Related Disputes
In 2025, ESG-related disputes represent a critical risk area for companies, both reputationally and legally. Environmental obligations, social responsibility expectations, and corporate governance standards are subject to increasingly strict oversight.
Main Drivers:
- Tightening of waste management regulations
- The challenging impact of carbon taxes and emission reduction targets
- Rise of anti-ESG legislation and greenwashing allegations
Most Commonly Feared Outcomes:
- Non-compliance with waste management rules (60%)
- Violations of carbon tax and emission regulations (45% and 34%)
- Litigation over misleading environmental claims (greenwashing)
Strategic Impact:
Lack of ESG compliance can lead not only to legal penalties but also to significant loss of investor and consumer trust. Companies must develop ESG policies that are transparent, measurable, and reportable.
- Post-M&A Disputes
Mergers and acquisitions (M&A) offer strategic growth opportunities but also carry post-transaction dispute risks. Tax indemnities, contract breaches, and valuation disagreements emerged as the most common issues in this area in 2025.
Main Drivers:
- Post-transaction tax audits and the emergence of legacy liabilities
- Misinterpretation or breach of contractual provisions
- Disputes over purchase price and valuation methodologies
Most Commonly Feared Outcomes:
- Disputes over tax indemnities and other tax matters (56%)
- General contract breaches (56%)
- Valuation disputes (46%)
Strategic Impact:
Thorough due diligence and the inclusion of clear dispute resolution clauses in contracts play a critical role in preventing post-M&A litigation.
Sector Perspectives – Dispute Priorities in 2025
The report shows that the distribution of dispute risks by sector varies according to the dynamics of each industry. These differences stem from both business models and the intensity of regulation.
Consumer Products and Retail
- Key Risks: AI-related issues, post-M&A disputes, intellectual property and trademark litigation.
- The use of generative AI in marketing and customer engagement increases risks related to ethics and data breaches.
- Litigation over product quality and consumer rights remains on the agenda.
Energy and Infrastructure
- Key Risks: ESG and environmental regulations, public law disputes, contract breaches.
- Disputes over carbon neutrality targets, emission reductions, and energy transition projects are becoming more prominent.
Financial Institutions
- Key Risks: Cybersecurity, regulatory compliance, disputes arising from financial products and services.
- Fintech collaborations and data breaches are diversifying legal risks in the sector.
Healthcare and Life Sciences
- Key Risks: Intellectual property disputes, product safety, regulatory compliance.
- Protection of clinical data and patent processes for new treatment technologies are among the sector’s main dispute topics.
Industry, Manufacturing, and Logistics
- Key Risks: Commercial contracts, supply chain disputes, post-M&A conflicts.
- Disruptions in global supply chains are driving demands for contract renegotiations.
Technology
- Key Risks: Artificial intelligence, cybersecurity, and intellectual property disputes.
- Litigation and regulatory scrutiny regarding the training and use of AI models are rapidly increasing.
General Assessment – After the First Eight Months of 2025
As we move past most of 2025, it is clear that many of the dispute trends highlighted at the start of the year have materialized in practice. Cybersecurity incidents and data breaches, as predicted in the report, have become leading causes of both litigation and regulatory investigations. Intellectual property and data privacy cases related to the use of artificial intelligence have increased rapidly, particularly in the technology and consumer products sectors.
ESG-related disputes have also maintained their prominence, as anticipated. Waste management, carbon taxes, and greenwashing allegations have led to high-volume litigation across multiple jurisdictions. Post-M&A disputes, especially over valuations and tax indemnities, have emerged as one of the year’s key themes.
In some areas, however, forecasts have not fully materialized. For example, the expected scale of global non-compete bans in employment law did not occur; however, there has been a notable rise in pay transparency regulations and discrimination lawsuits. In tax disputes, transfer pricing audits have intensified, while issues arising from global mobility have been somewhat more limited than predicted, partly due to the normalization of remote work.
Overall, the report’s initial conclusion—that a “multi-disciplinary, proactive, and flexible approach” is essential—remains valid. The first eight months of 2025 have been marked by both the confirmation of earlier forecasts and the emergence of new risk areas. For the remainder of the year, geopolitical developments and regulatory changes are expected to trigger fresh shifts in the dispute risk landscape.
