Norton Rose Fulbright Survey Reveals Rising Litigation Risks in Key Industries

Norton Rose Fulbright's 2026 Annual Litigation Trends Survey paints a concerning picture for corporate entities facing escalating litigation risks driven by increasing threats in cybersecurity and artificial intelligence (AI). The survey results indicate that heightened vulnerabilities are primarily affecting critical sectors such as energy, financial services, healthcare, and technology. According to the survey respondents—135 general counsel and in-house litigation leaders—there has been a substantial increase in both federal and state-level litigation pressures this year. These findings reveal a marked departure from earlier expectations, highlighting a landscape that is rapidly evolving, and are aimed at helping organizations understand the ripple effects of these changes.

Specifically, the survey reveals that 56% of those surveyed noted an increase in cybersecurity and data privacy dispute risks at the federal level, with 53% indicating the same at the state level. This is a significant jump from late 2025, when only 29% anticipated greater exposure to such disputes in 2026. The alarming trend is further compounded by the rising litigation risks associated with AI technologies, notably where 46% of respondents reported growing concerns at the federal level and 42% at the state level.

Additionally, organizations are grappling with intricacies surrounding employment-related issues, revealing that 39% of all surveyed lawyers cited increased federal dispute exposure, while 44% pointed to increased risks at the state level. This spike in employment issues arises against a backdrop of new legislation being enacted in states like California and New York, further complicating compliance. In fact, 51% of surveyed professionals believe that data breaches or cybersecurity incidents are highly likely to trigger class action lawsuits, while 47% attribute this risk to workforce changes such as layoffs.

The dynamics are evolving so rapidly that legal teams have reported an improved state of litigation readiness, but organizations must still prepare for the complexities associated with these threats. Steven Jansma, Norton Rose Fulbright’s US Head of Litigation and Disputes, noted, "What stands out is how quickly the litigation environment is evolving, especially around cybersecurity incidents, consumer claims and AI-related disputes. We are seeing new approaches and a level of activity that is accelerating across industries. Even where federal enforcement has softened, states are often stepping in and pushing litigation forward."

Given these escalating challenges, it's crucial for procurement professionals to recognize the importance of outside counsel in navigating this uncharted territory. Companies offering legal services or compliance solutions can capitalize on the urgent demand for expertise in the sectors most affected. As organizations look for ways to mitigate risk, those with proven capabilities in handling complex cybersecurity and AI-related disputes could find themselves in significant demand.

Engaging with a firm like Norton Rose Fulbright may provide companies with the guidance needed to navigate the growing array of litigation risks. As legal pressures mount, businesses should consider making strategic partnerships with firms specializing in these areas, as this could lead to more robust compliance strategies and lower exposure to litigation.