A majority of businesses in the US believe their AI strategies will be affected by policy changes this year, according to a Littler report.
The firm’s 14th Annual Employer Survey found that 84% of respondents expect impacts from policy or regulatory changes relating to AI use in the workplace over the next 12 months, double the response in last year’s survey (42%). Respondents are also expecting workplace impacts from data privacy regulation, rising to 53% from 31% a year ago.
Despite the Trump administration’s clamp down on immigration and diversity and inclusion, US employers are expecting to see less of an impact over the coming 12 months, declining to 49% and 38% from 75% and 84%, respectively.
Littler’s Workplace Policy Institute co-chair James Paretti and executive director Shannon Meade, said: “The shifts in this year’s survey relating to immigration and DEI do not mean that these issues have dissipated. Rather, businesses appear to be adjusting to a ‘new normal’ in the second year of the Trump administration and turning their attention to what’s coming next – particularly AI – as the workplace policy and regulatory landscape continues to evolve.”
AI adoption is also prompting employers to reevaluate their staffing needs due to expected efficiency gains. Some 37% of respondents say they have reassessed or are reassessing job responsibilities, while a fifth say they are reducing or plan to reduce hiring. Another 15% say they are reducing or planning to reduce their workforce in response to AI efficiency gains.
More firms have also implemented formal AI governance policies over the past year, with 68% saying they now have a policy compared to 38% a year ago. Despite those policies, only 55% say they have a formal review or approval process for AI tools, while only 54% have restrictions on what information can be shared with AI tools – highlighting potential governance gaps.
Niloy Ray, co-chair of Littler’s AI and technology practice group, said: “AI adoption is moving quickly, but governance is still playing catch-up. That mismatch could leave employers vulnerable to significant risk, especially given the complexity around compliance.
“Between an increasingly active patchwork of state laws and unresolved liability questions in light of new federal policy proposals, employers will likely remain on the hook for how these tools are used.”
Ray added: “AI policies should reflect how the tools are actually used by their workforces, and implementing meaningful training helps lessen the risk that AI integration will deepen litigation exposure.”
Many businesses are worried about AI-related legal risks, with 79% of respondents expressing concerns about potential AI-related litigation over the next 12 months and 49% concerned about data privacy.
The report is based on a survey of more than 300 US-based C-suite executives, in-house lawyers and human resources professionals.
Click here to read the report.
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