AI adoption is outrunning governance, and it’s up to CHROs to mind this gap. AI ranked higher than immigration and DEI as an employer worry for 2026, according to Littler's recent 2026 Annual Employer Survey.
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84% expect AI to have an impact, up from 42% in 2025.
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53% prioritize data privacy, up from 31%.
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49% worry about immigration, down from 75% and DEI ranked at 38%, down from 84%.
“AI adoption is moving quickly, but governance is still playing catch-up. Employers will likely remain on the hook for how these tools are used,” said Niloy Ray, co-chair of Littler's AI and Technology Practice Group.
The governance gap:
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68% now have a formal AI policy, up from 38% in 2025.
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Only 55% run a review or approval process for AI tools.
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54% limit what data employees can enter. 13% have no controls at all.
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Just 25% provide risk-based training on legal and ethical use.
On litigation: 79% expect AI-related suits in the next year. The top exposures are data privacy (49%), discrimination or bias (45%), and state AI laws (43%).
The workforce is already shifting:
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37% have reassessed or are reassessing job responsibilities.
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20% have reduced hiring or are doing so.
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29% of large employers have already reassessed job responsibilities; 17% have reduced hiring.
Note: the survey consisted of 303 responses from GCs (22%), in-house lawyers (40%); CHROs (15%); and HR Professionals (19%); 55% of respondents came from companies with more than 5,000 employees.
What CHROs can do:
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Pair the AI policy with data-entry limits, which fewer than 6 in 10 employers have in place.
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Fund risk-based training. Only 25% offer training, and it can reduce legal exposure.
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Run due diligence on AI vendors, each present at just 45% of organizations.
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Train frontline managers to document a consistent, individualized review process as litigation concern climbs.
The bottom line: A written policy will not contain the risk. Training, oversight, and approval processes are needed to reduce legal exposure.
