Legal and compliance issues are top of mind for organizations today, particularly as AI advances pick up steam and employers grapple with a still-changing regulatory landscape in the second year of a new administration. And according to new research, organizations increasingly feel less prepared to address litigation risk.
The share of organizations involved in at least one lawsuit last year remained flat from the previous year—and the average number of suits declined slightly, according to Norton Rose Fulbright’s 2026 Litigation Trends Survey. However, in its survey of 400 U.S. general counsel and in-house litigation leaders, the firm found that the share of respondents who felt “very prepared” to address litigation plummeted between 2024-25: from 46% to 29%.
Kimberly Cheeseman, co-head of Norton Rose Fulbright’s Litigation and Disputes department, says the dip in preparedness in 2025 was likely a byproduct of the shift from the Biden to Trump administrations.
“Whenever there is a change in administration,” she says, “employers face a period of uncertainty as new regulatory agendas and enforcement priorities take shape.”
This is “especially pronounced” in the employment realm, she adds.
Researchers found that resource constraints could also be an influence: In-house litigation teams are shrinking, and hiring for law departments is slowing.
“While litigation spend remained steady last year, the share allocated to outside counsel declined;...
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