What: The rise of agentic AI systems is prompting a shift toward advanced privacy-enhancing technologies to address new regulatory and ethical challenges.

Why it is important: Addressing the challenges of agentic AI with robust privacy safeguards is essential for maintaining trust and regulatory compliance, according to recent industry developments.

Agentic artificial intelligence systems, which act autonomously and make independent decisions, are fundamentally changing the landscape of data privacy. Unlike traditional AI models, these systems can plan, reason, and interact with other agents, making their behavior less predictable and more difficult to regulate. This unpredictability raises complex questions about accountability and data control, especially as these systems continuously process and act on personal data in real time. Differential privacy emerges as a leading solution, offering mathematical guarantees that individual data cannot be re-identified through system outputs, thus aligning with key legal principles such as privacy by design and data minimization. However, differential privacy is not a cure-all; it must be paired with robust institutional safeguards like data stewardship and segregation of duties to ensure comprehensive protection. The article emphasizes that effective privacy protection in the age of agentic AI requires a combination of technical and governance measures, urging legal teams to update their strategies to address both inference risks and broader institutional vulnerabilities. 

IADS Notes: The retail sector’s experience with agentic AI, as reported by Forbes in October 2025 and Deloitte in September 2025, highlights the operational and regulatory challenges these systems introduce. The inadequacy of traditional privacy techniques, noted by The Retail Bulletin in August 2025, has driven the adoption of differential privacy, as discussed by IAPP in December 2025. BCG’s May 2025 analysis underscores the necessity of combining technical and institutional safeguards, while Forbes in December 2025 illustrates the growing importance of regulatory compliance as AI becomes more autonomous.

The case for differential privacy in the age of agentic AI