What are Privacy Enhancing Technologies (PETs)?

Organizations across the US, UK, and other regulated markets face increasing pressure to use sensitive data safely.

Privacy enhancing technologies (PETs) provide a way to protect data while enabling secure analytics, AI, and collaboration across teams or institutions.

PETs help organizations stay compliant with regulations such as GDPR in the UK and EU, and HIPAA or FedRAMP in the US, while reducing the risk of data breaches.

They also make it possible to analyse data that would otherwise remain siloed, supporting informed decision-making without compromising trust or security.

PETs are tools, techniques, and cryptographic methods designed to protect sensitive data while it is stored, processed, or shared.

Privacy-Enhancing Technologies (PETs) are a set of technologies that enable organizations to use, analyze, and share data while minimizing exposure of sensitive information. They allow computation on data without revealing the raw data itself, helping meet privacy, security, and regulatory requirements.

What problem do PETs solve?

Traditionally, data must be centralized and exposed to be analyzed. PETs break this trade-off by enabling value extraction without data disclosure, even when multiple parties are involved.

Core types of PETs

  • Fully Homomorphic Encryption (FHE)
    Enables computation directly on encrypted data. The results remain encrypted and can only be decrypted by authorized parties.
  • Secure Multi-Party Computation (SMPC)
    Allows multiple parties to jointly compute a function over their inputs without revealing those inputs to each other.
  • Trusted Execution Environments (TEEs)
    Secure hardware enclaves that isolate code and data during execution, protecting them even from the system owner or cloud provider.
  • Differential Privacy (DP)
    Adds controlled statistical noise to data or results to prevent identification of individuals while preserving analytical accuracy.
  • Federated Learning
    Trains machine-learning models across decentralized data sources so data never leaves its original location.

By embedding privacy directly into data systems, PETs help organizations comply with regulations and reduce the risk of data breaches.

Why Privacy Enhancing Technologies Matter

Privacy enhancing technologies (PETs) are essential for organizations that need to use data safely while maintaining security and compliance.

By enabling controlled collaboration and analysis across teams, institutions, or borders, PETs allow organizations to work with sensitive or siloed data without exposing it.

Here’s how they help:

  • Secure AI and analytics: Train and run AI models on sensitive data while keeping it protected.
  • Cross-institution collaboration: Share data safely with partners, research institutions, or subsidiaries.
  • Regulatory confidence: Meet compliance requirements while reducing the operational burden of manual data protection.
  • Risk reduction: Reduce the likelihood of data breaches and unauthorized access.
  • Data-driven decision-making: Make informed decisions using sensitive data that would otherwise remain inaccessible.

For regulated sectors such as healthcare, finance, and government, these benefits are critical. 

How Privacy Enhancing Technologies Work

Privacy enhancing technologies work by keeping sensitive data protected while it is being processed or shared.

Instead of moving or exposing raw data, PETs allow computations and analysis to happen in a secure way.

Typical processes include:

  • Operations on encrypted or anonymized data: Data is transformed so calculations can be performed without revealing the original information.
  • Segregated processing environments: Data is handled in controlled spaces where only authorized operations are allowed.
  • Output filtering: Results are generated in a way that prevents disclosure of individual or proprietary details.
  • Policy-driven access: Data is used according to defined rules, ensuring only the necessary information is visible.

Where Are PETs Used?

Privacy enhancing technologies are used in situations where organizations need to analyse or share sensitive data without exposing it.

They are most commonly applied in regulated industries and multi-party environments where privacy, security, and governance requirements are high.

Common use cases include:

  • Healthcare and life sciences:
    Hospitals, research institutions, and pharmaceutical companies use PETs to analyse patient data, support medical research, and develop AI models without sharing identifiable health information.
  • Financial services:
    Banks and financial institutions apply PETs to detect fraud, assess risk, and perform analytics across datasets while keeping customer and transaction data confidential.
  • Government and public sector:
    Public agencies use PETs for population analysis, public safety, and policy evaluation without revealing personal or classified information.
  • Marketing and advertising analytics:
    Organizations use PETs to measure campaign performance, attribution, and audience insights across datasets without sharing raw customer data or exposing personal information.

These use cases allow organizations to work with sensitive data in environments where direct data sharing is not possible or permitted.

What Types of Privacy-Enhancing Technologies Exist?

Homomorphic Encryption (HE)

Homomorphic encryption allows computations to be performed directly on encrypted data, so data never needs to be decrypted during processing.

This enables analytics and machine learning workloads without revealing underlying values at any point.

Use case: Running predictive models on patient records without exposing PHI (protected health information)
Benefit: Full encryption throughout the data lifecycle

Secure Multiparty Computation (SMPC)

Secure multiparty computation enables multiple organizations to jointly compute results from their combined data while ensuring each party’s input remains private and undisclosed to others.

Use case: Financial institutions collaborating to detect fraud without sharing raw data
Benefit: No single party sees the entire dataset

Differential Privacy

Differential privacy introduces mathematically calibrated noise into outputs, ensuring results remain accurate at an aggregate level while preventing identification of individuals within the dataset.

Use case: Government agencies releasing population statistics safely
Benefit: Protects anonymity in large-scale datasets

Federated Learning

What is Federated Learning?

Federated learning allows machine learning models to be trained across decentralized datasets. Only model updates are shared, while raw data stays within its original environment.

Use case: Medical institutions building AI diagnostics without centralizing patient data
Benefit: Keeps data local and reduces exposure risk

Secure Enclaves / Trusted Execution Environments (TEEs)

Trusted execution environments – TEEs provide hardware-based isolation that ensures code and data remain protected during execution, even in shared or untrusted infrastructure.

Use case: Protecting code execution in untrusted cloud environments
Benefit: Prevents tampering and unauthorized access control

Zero-Knowledge Proofs (ZKPs)

Zero-knowledge proofs allow one party to prove a statement is true without revealing the underlying data, enabling verification without disclosure.

Use case: Verifying identity without exposing personal credentials
Benefit: Enables privacy-preserving authentication and verification

Technology  Definition
Homomorphic Encryption Lets organizations run calculations on encrypted data without ever decrypting it, keeping sensitive information secure while still allowing analysis.
Multiparty Computation (SMPC) Multiple parties can work together to compute results using their own data without sharing the raw data with each other.
Differential Privacy Adds controlled “noise” to data outputs so individual information can’t be identified, while still allowing useful insights from aggregated data.
Federated Learning A machine learning approach where models are trained across multiple devices or locations without moving raw data, keeping information local and private.
Secure Enclave / Trusted Execution Environment (TEE) A protected, isolated area in a computer or processor where code and data can be processed safely, even in untrusted environments.
Zero-Knowledge Proofs (ZKPs) A method that proves a statement is true without revealing the underlying data, allowing verification without sharing sensitive information.
Synthetic Data Artificial datasets that mimic real data patterns without containing actual personal information, enabling safe testing, analysis, and model training.

What are the Benefits of Privacy-Enhancing Technologies?

As digital technologies expand, individuals and organizations are generating and handling more personal data than ever before. While this opens up new opportunities, it also introduces significant privacy and security risks.

PETs play a critical role in mitigating these risks by enabling secure data processing, protecting sensitive information, and ensuring compliance with evolving privacy regulations.

Adoption of PETs continues to accelerate, with the global market projected to reach USD 28.4 billion by 2034.

Key benefits include:

Enhanced Privacy

Protect your personal data and control who sees it. PETs ensure your information stays safe, reducing the risk of identity theft or unwanted surveillance.

Use case: A secure payment platform tokenizes your credit card info, so your sensitive data is never stored in its original form.

Example: Signing up for an online service using pseudonymized data keeps your real identity safe, even if the platform is breached.

Reduced Risk of Data Breaches

PETs like encryption, differential privacy, and secure multiparty computation prevent unauthorized access to sensitive data.

Use case: Your health records are encrypted before storage in a hospital database, keeping them unreadable even if the system is hacked.

Example: A hospital stores patient lab results using encryption, so even if the database is breached, attackers cannot access the actual patient information.

Greater Trust in Digital Services

PETs let organizations demonstrate that they value privacy, building confidence among citizens, clients, and stakeholders.

Use case: A government agency uses differential privacy to release population statistics, ensuring no individual citizen can be identified.

Example: When publishing census data, the agency aggregates and adds noise to datasets so researchers can access insights without exposing personal details, reducing the risk of misuse or privacy breaches.

How to Implement Privacy-Enhancing Technologies

Implementing PETs doesn’t have to be complicated. Organizations can start small and scale over time while ensuring sensitive data remains protected.

Key steps:

  1. Assess your data risks – Identify which datasets are sensitive, regulated, or siloed.
  2. Choose the right PETs – Match technology to your use case (e.g., homomorphic encryption for analytics on encrypted data, federated learning for decentralized AI).
  3. Pilot on a small dataset – Test workflows in a controlled environment to evaluate performance and security.
  4. Establish governance and policies – Define who can access data, under what conditions, and how outputs are controlled.
  5. Scale safely – Expand PET usage across teams, departments, or partner organizations while continuously monitoring compliance and security.

Use case: A municipal government wants to analyze citizen mobility data to improve public transportation planning. They use federated learning so the city can generate insights without accessing individuals’ raw location data.

Example: During a pilot, only aggregated traffic patterns are shared with planners, while each device keeps detailed location data private. This approach provides actionable insights without compromising citizen privacy.

What Does the Future of Privacy-Enhancing Technologies Look Like?

PETs are evolving fast. As more organizations rely on sensitive data, they will be essential for secure collaboration, AI, and analytics.

Key trends shaping the future:

  • Privacy-first AI: PETs will allow AI to learn from sensitive or distributed data without exposing personal or confidential information.
  • Secure data processing: Trusted execution environments and confidential computing will keep data safe even during complex computations.
  • Global privacy standards: New regulations and frameworks will make cross-border data sharing safer and easier to comply with.
  • Industry adoption: Sectors like healthcare, finance, government, and tech will increasingly rely on PETs for secure analytics and innovation.
  • Simpler implementation: PETs will become easier to use, helping organizations of all sizes protect data without complex setups.

The future of PETs is about combining security, compliance, and innovation. Organizations that adopt these technologies early will gain a competitive edge while keeping sensitive data safe.

How Can Organizations Choose the Right Privacy-Enhancing Technology?

Choosing the right privacy-enhancing technology depends on your organization’s goals, data, and compliance requirements.

Key considerations:

  • Identify your objectives: Determine whether you need PETs for secure AI, analytics, multi-party collaboration, or regulatory compliance.
  • Assess data sensitivity: Highly regulated or personal data may require advanced PETs, while aggregated or anonymized datasets can use simpler methods.
  • Consider scale and complexity: Smaller teams may start with differential privacy, while larger organizations might need federated learning or secure enclaves.
  • Check system compatibility: Ensure the PET integrates smoothly with existing workflows, software, and cloud environments.
  • Align with compliance requirements: Choose PETs that help meet GDPR, HIPAA, FedRAMP, or other relevant regulations.
  • Pilot and refine: Test on a small dataset first, then expand adoption while monitoring performance, security, and compliance.

How Do PETs Compare to Traditional Data Privacy Methods?

Privacy-enhancing technologies differ from standard privacy approaches in several key ways:

  • Data Use vs. Data Hiding: Traditional methods, such as simple encryption or anonymization, focus on protecting data by limiting access. PETs allow organizations to use data safely without exposing sensitive information.
  • Collaboration Across Boundaries: PETs support multi-party computations and secure AI training across organizations or departments, something traditional methods struggle to enable.
  • Regulatory Alignment: PETs provide built-in mechanisms to meet modern compliance requirements like GDPR, HIPAA, and FedRAMP, beyond basic protection.
  • Granular Privacy Control: PETs can control privacy at the individual data point level, whereas traditional methods often apply a blanket approach.
  • Advanced Analytics Support: PETs make it possible to run analytics, train machine learning models, and generate insights without compromising privacy, which traditional techniques often block.

This comparison helps organizations see why PETs are increasingly necessary for secure, innovative, and compliant data usage.

What Are Common Misconceptions About Privacy-Enhancing Technologies?

Many organizations misunderstand what PETs can do, which can slow adoption or lead to underutilization. Common misconceptions include:

  • PETs are only for large enterprises: PETs can scale to small and medium organizations, with solutions adapted to their data volume and use cases.
  • PETs prevent all data breaches: While PETs reduce risk, they complement – not replace – other security measures like firewalls and access controls.
  • PETs make data unusable: Modern PETs are designed to enable analytics, AI, and insights, keeping data useful while maintaining privacy.
  • Implementation is always complex: Some PETs, such as differential privacy or synthetic data, can be implemented quickly with minimal disruption.

Understanding these myths helps organizations set realistic expectations and adopt PETs effectively.

Modern visualization of privacy enhancing technologies (PETs) protecting sensitive data flows across a global network, supporting ethical AI development and secure cross-border collaboration with Duality platform

How Do PETs Enable Ethical AI and Data Practices?

Privacy-enhancing technologies are a foundation for responsible and ethical AI. They allow organizations to:

  • Avoid biased decisions: By using aggregated or synthetic datasets, PETs prevent overexposure of individual data points that could skew AI outcomes.
  • Respect user consent: PETs minimize the need to move or expose personal data, aligning AI practices with privacy preferences.
  • Promote transparency: PET-enabled analytics can provide insights without revealing private details, making AI outputs safer and more explainable.
  • Support cross-border research: PETs allow ethical collaboration between organizations in regions with strict privacy regulations, fostering innovation without legal violations.

By embedding privacy into AI workflows, PETs make it easier to balance innovation with ethical responsibility.

Duality: Collaborate on Sensitive Data in the Safest Way

At Duality, we make privacy-enhancing technologies simple to use.

Our privacy-first platform for secure data collaboration brings together tools like homomorphic encryption, federated learning, differential privacy, and secure enclaves so your team can work with sensitive data safely. You can train AI models, validate results, and collaborate across teams and borders without moving the data.

Your data stays private and protected, while your organization can turn insights into decisions safely and confidently.