After exploring how Artificial Intelligence and X Computing will shape digital identity, we turn our focus to other major forces set to influence this field. In 2025, cybersecurity, data decentralisation, carbon footprint concerns, regulation, and digital trust will play pivotal roles in defining the landscape of digital identity. From tackling new security challenges to fostering trust in a decentralized world, Facephi is here to guide you through the trends that will impact digital identity in the year ahead.
Innovation in cybersecurity to protect digital identity
In 2025, companies, products, and services will increasingly adopt resiliency by design. The same forces driving the future of AI—automation, augmentation, and acceleration—will shape the evolving landscape of cybersecurity. While Generative AI will strengthen cybersecurity capabilities, it will also expand the attack surface
Moreover, the growing connectivity of devices and interoperability among stakeholders within single processes will further widen the attack surface. To address these challenges, Threat Intelligence will leverage AI-enhanced analytics, synthetic signals and event data generation, along with real-time processing of signals from connected devices.
Post-Quantum Cryptography will continue to be a key concern within the cybersecurity community, given the looming threat of quantum-enabled attacks.
The rise of deepfakes, misinformation, and social engineering will increase the risk of financial crimes, such as “pig butchering” and “money muling.” In response, AI-based behavioural biometric analysis will solidify as a crucial tool for continuous authentication and detecting financial crimes.
Data decentralization, Carbon footprint, and Regulation
Artificial Intelligence, X Computing, and Cyber Resilience are set to profoundly influence both the digital and physical ecosystems. The expanding attack surface and the need for reconfiguring landscapes will also affect the data space. Decentralization will become a critical feature in most cutting-edge technological products, particularly in how data is stored and managed.
In product and user experience design, the data space will be a key consideration. A central focus will be on determining how to achieve decentralized data storage and management without compromising security. Edge Computing will offer greater flexibility, allowing data to be processed on-device, reducing the reliance on cloud communications and storage.
As data decentralization takes hold, new concepts like data holder and data owner will emerge, delineating distinct levels of rights and responsibilities regarding data usage. On the other hand, Supercomputing and Large Language Models (LLMs) will continue to demand vast amounts of energy, driving the growth of green and clean energy initiatives. Carbon accounting may become a core KPI for technology companies, particularly in relation to ESG (Environmental, Social, and Governance) compliance.
Lastly, regulations around AI and energy consumption will significantly impact the pace of technological innovation. This could create a growing divide between those leading innovation and regulatory bodies attempting to keep up.
Digital trust: the basis of a secure identity
AI-based Identity Verification (IDV) will continue to be the gateway to trustworthy digital experiences. Automated and augmented IDV processes will integrate additional AI technologies and leverage the connectivity of users’ devices, thereby expanding the scope of identity verification. Fraud detection will be enhanced using signals and event intelligence gathered from users’ interactions with devices, digital services, and physical evidence, creating a more comprehensive understanding of the individuals engaging with the digital ecosystem.
Continuous Identity Events Intelligence, which includes pre-screening, IDV, behavioural biometrics, and contextual awareness, will play a crucial role in detecting impersonation and preventing financial crime, such as money mulling. Advancements in AI architectures, improved efficiency, robust on-device processing, and low-latency connectivity will enable real-time evaluations within this increasingly complex IDV landscape.
This enhanced and automated IDV process will extend KYC (Know Your Customer) practices beyond the financial sector, applying them to broader use cases such as Identity Fabrics, Identity Aggregation, and KYB (Know Your Business). Digital and decentralized identities will also play a pivotal role by offering alternative methods for authentication. Verifiable Credential Presentation will become a key component of a cyber-resilient infrastructure.
Traditional authentication methods based on Cryptographic Holder Binding will be enhanced by integrating Biometric Credential Presentation, or Owner Binding, to further strengthen security. The adoption of digital identities is expected to accelerate across various sectors, aided by existing Public Key Directories (PKDs). Lastly, accessibility will become an indispensable feature, allowing Digital Trust to become a standard across industries.
As we move into 2025, the landscape of digital identity will continue to evolve, shaped by advancements in AI, X computing, cybersecurity, and regulatory innovation. At Facephi, we stay at the forefront of these trends, dedicated to providing innovative solutions that not only protect but also strengthen resilience and security in an ever-shifting digital world. Our commitment drives us to lead the way in redefining digital trust for tomorrow.
