The Littler survey found that AI-related regulation, litigation, and workforce disruption have surpassed immigration and DEI as employers’ leading workplace concerns.
Key Takeaways
- 84% of employers say AI-related workplace regulation will impact their businesses over the next 12 months. Data Privacy was next at 53%.
- AI is now the top workplace policy and regulatory issue, surpassing immigration and DEI.
- 79% are concerned about AI-related litigation, with data privacy and discrimination risks leading the concerns.
- 68% report implementing formal workplace AI policies.
- 37% say they are reassessing job responsibilities because of AI use.
Littler’s 2026 Annual Employer Survey found that AI is now the leading workplace policy and regulatory concern for U.S. employers as they increase AI adoption across all departments.
The survey included more than 300 U.S.-based executives, in-house lawyers, and human resources professionals across multiple industries and company sizes.
AI Surpasses Immigration And DEI As Top Employer Concern
According to the report, 84% of respondents expect workplace policy or regulatory changes involving AI to affect their businesses over the next 12 months. That figure doubled from 42% in Littler’s 2025 survey.
Conversely, immigration concerns fell to 49%, down from 75% in 2025, while DEI concerns dropped to 38% from 84%.
The report notes that employers are increasingly focused on AI due to expanding state AI laws, data privacy obligations, and the growing use of AI systems across the workplace.
Company AI use is deepening in core departments
- 54% of HR and Information Technology/Cybersecurity now use AI
- Marketing and Communications is next at 52%
- Legal and Compliance, 48%
- Operations, 47%
- Customer service, 44%
Only 6% report not using AI at all.
Companies are adding AI governance plans, but there’s a gap in execution
- 68% of respondents implemented a formal workplace AI policy.
- 55% said they require formal review or approval processes for AI tools or use cases before deployment.
- 54% said they restrict what information employees may enter into AI systems.
However, the report identified gaps in oversight and employee training.
- 45% said they have a designated committee responsible for AI oversight.
- 43% percent said they provide tool-specific training on approved AI applications.
- Only 25% said they conduct risk-based training focused on legal, compliance, or ethical issues tied to AI use.
- 13% reported implementing no AI governance measures at all.
Similar studies have found that organizations are developing governance plans but have yet to establish the necessary mechanisms to implement them.
Employers expect AI litigation to increase
Littler found that 79% of respondents are concerned about AI-related litigation over the next 12 months.
The leading concern was data privacy issues involving employee or candidate information, cited by 49% of respondents. 45% cited claims of discrimination or bias, while 43% cited compliance with state or local AI laws.
The report also found that employers are concerned about rules requiring them to keep records and explain how AI-assisted decisions were made. Littler said businesses may struggle to show how AI systems influenced hiring or employment decisions.
AI adoption is affecting workforce planning
The report found that employers are beginning to adjust their workforce planning in response to expected AI-driven efficiency gains.
37% said they have reassessed or are reassessing their job responsibilities due to actual or anticipated AI use. 20% said they reduced or are reducing hiring. 15% said they have reduced or are reducing their workforce.
