In today's digital landscape, ensuring the security of sensitive data and protecting against network intrusions are critical challenges. This research project develops and evaluates a novel context-aware adaptive encryption system that integrates sensitive data detection, network intrusion detection, and dynamic encryption techniques to enhance data security. The proposed system employs deep learning models to identify sensitive information and machine learning algorithms to monitor network activity for potential intrusions. Upon detecting sensitive data or a security threat, the system automatically applies encryption with adjustable strength based on the context, increasing protection in high-risk situations. This approach minimizes unnecessary overhead in low-risk scenarios while maintaining robust security measures. Through simulations using real-world data, the system's effectiveness in accurately detecting sensitive information and network intrusions, as well as its capability to adapt encryption dynamically, is evaluated. The results demonstrate the potential of combining machine learning with adaptive security measures to create a responsive and efficient data protection system.