Cybersecurity and AI threats are intensifying corporate litigation exposure across key US industries in 2026, new Norton Rose Fulbright survey finds

Norton Rose Fulbright's 2026 Annual Litigation Trends Survey: A midyear industry pulseshows exposure to cybersecurity and data privacy disputes has deepened across the energy, financial institutions, healthcare and technology sectors since the start of the year - far outpacing earlier expectations. Corporate counsel in those sectors also report increased litigation risk around artificial intelligence (AI) and employment issues but note improvements in litigation readiness.

This new poll of 135 general counsel and in-house litigation leaders found cybersecurity and data privacy is the top area of heightened dispute exposure across all four industries, with 56 percent reporting increased risk at the federal level and 53 percent at the state level. By contrast, in late 2025, just 29 percent of respondents from those sectors expected to face greater cybersecurity and data privacy exposure in 2026. Respondents also cite increased litigation concern around AI, with 46 percent reporting more federal dispute exposure and 42 percent reporting state-level increases.

Employment and labor risk remains a major issue, with 39 percent of all respondents citing increased federal dispute exposure and 44 percent reporting more at the state level. This reflects increased compliance complexity as California, New York and other states pass new employment-related requirements.

Cybersecurity and workforce issues also dominate class action concerns. More than half (51 percent) of all respondents cite data or cybersecurity breaches as a likely trigger of such litigation, while 47 percent cite workforce changes such as layoffs. AI tools appear to be an emerging class action catalyst, with 41 percent of all respondents identifying product launches or AI-related deployments as a likely trigger.

"What stands out is how quickly the litigation environment is evolving, especially around cybersecurity incidents, consumer claims and AI-related disputes," said Steven Jansma, Norton Rose Fulbright's US Head of Litigation and 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."

Highlights of industry-specific litigation concerns and exposure include:

• Energy: Nearly six in 10 (57 percent) energy respondents report increased employment and labor dispute exposure at the federal level and 51 percent at the state level, the highest shares across industries. Energy respondents are also the most likely (57 percent) to consider workforce changes a likely class action trigger in 2026.

• Financial institutions: More than half of financial institutions respondents report increased federal exposure to cybersecurity and data privacy (53 percent) and consumer protection (53 percent) disputes, followed by AI at 47 percent. Data breaches or cybersecurity incidents are also this group's most-cited class action trigger for 2026 (56 percent).
• Healthcare: Federal AI exposure increased for 53 percent of healthcare respondents, with the same share citing AI-enabled product deployments and product launches as a likely trigger of class action litigation. They are also the most likely to say AI governance and oversight issues have heightened (26 percent) since late 2025.
• Technology: Three-quarters of technology respondents report increased federal litigation exposure and 72 percent report state-level increases since the start of 2026, the highest shares of any industry surveyed. More than half (56 percent) expect privacy or data protection violations from AI use to contribute to litigation exposure; half also cite bias or discrimination claims and intellectual property disputes involving AI.

In-house legal teams report meaningful progress on litigation readiness since late 2025:

• Internal legal budgets: More than half (55 percent) of respondents say management of internal legal budgets has improved and half say the same of cross-functional coordination.
• Outside counsel costs: Most (71 percent) say managing outside counsel costs has become easier or remained the same, even as regulatory and compliance complexity remains a challenge for most.