AI officially overtook both immigration and DEI as the top area where employers are bracing for changing regulations and workplace policies, according to a new report from law firm Littler.
The annual report, which surveyed about 300 C-suite executives, found that 84% of respondents expect AI-related policy or regulatory changes in the next year. That figure is double what it was at this time last year.
Niloy Ray, co-chair of the AI & Technology Practice Group at Littler, says that the shift highlights a number of realities, including “natural growth” in the number of businesses that have implemented AI over the last year.
“This year, we’re closer to AI becoming the median expectation, as most employers are using it and grappling with regulatory and compliance obligations,” Ray says.
At the same time, the regulatory landscape is growing more complex. Multiple measures are moving forward to regulate AI in a number of states, while the Trump administration continues to press for a uniform approach that limits state oversight.
“Smart employers are expecting more and more change,” Ray says of the regulatory landscape.
Despite the pace of AI adoption, governance is lagging.
The report finds that 68% of organizations do have a formal policy around AI use in the workplace, nearly double where the figure stood last year. However, such policies are often not comprehensive enough, Ray says. Just over half have restrictions on the...
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