US organizations are preparing for a sharp rise in corporate disputes throughout 2026 as economic uncertainty, AI disruption and growing regulatory complexity reshape the risk landscape, according to research from AlixPartners.
The firm’s 2026 US Risk Survey found that 63 percent of respondents expect corporate disputes to increase in 2026, highlighting mounting concern among legal, compliance and risk leaders over litigation exposure.
Speaking to Governance Intelligence on the drivers behind this trend, Sean Dowd, partner and managing director at AlixPartners says that M&A deal flow is driving post-deal litigation.
‘I would also say that litigation funding (not covered in the survey) is continued driver of more litigation being brought that heretofore was not,’ he adds.
‘Generally speaking, companies are viewing large ticket litigation as a potential major boon to the bottom line – if successful. Therefore, there is enhanced diligence around what should be: a) not pursued, b) what should be settled, c) what could be a big payday. I think in times of economic uncertainty, it magnifies the risk and reward calculus.’
The report suggests litigation risk is becoming more deeply embedded within broader enterprise risk management discussions, particularly as companies face economic volatility alongside rapid technological change.
The survey, based on responses from 500 senior US executives in legal, compliance and risk roles, points to a corporate environment where organizations are increasingly exposed across multiple fronts but remain unevenly prepared to respond.
Cyber-security incidents ranked as the most concerning risk event over the next 12 months, cited by 65 percent of respondents. Despite this, less than half (48 percent) said they are ‘very prepared’ to address cyber threats.
The preparedness gap appears especially significant as AI-related threats accelerate. The share of respondents identifying AI-powered attacks as a top cyber-security concern doubled year-on-year to 34 percent from 17 percent in 2025. Yet nearly three quarters (74 percent) said they have not completed system upgrades designed to address those threats.
At the same time, companies are grappling with growing uncertainty around AI regulation. Eight in 10 respondents said developing federal AI policy poses strategic risk to compliance efforts amid an increasingly fragmented regulatory environment.
Internal governance structures also remain underdeveloped at many organizations. About half of respondents said their companies still lack core AI governance measures, including dedicated governing bodies or committees.
Although technology investment remains the primary strategy for combating financial crime, confidence in risk-detection technologies fell 20 percent year-on-year, suggesting organizations may be reassessing the effectiveness of existing compliance and monitoring tools.
Data privacy risks continue to present another area where awareness appears to be outpacing action. Nearly six in 10 respondents, or 58 percent, identified data privacy as one of the most concerning risk events facing their organizations.
However, only 50 percent said their organizations are enhancing or planning to enhance data encryption despite 73 percent identifying encryption as one of the most important measures for addressing industry data privacy challenges.
The report also points to growing exposure linked to cryptocurrency adoption. A majority of respondents, at 59 percent, said their organizations are either already using cryptocurrency for payments and transactions or are testing use cases.
Yet governance controls around those activities remain limited. Less than half (45 percent) said they have escalation and off-ramp procedures in place, while 44 percent conduct third-party risk assessments for banking-as-a-service and fintech partners.
Geopolitical developments are adding further pressure to compliance functions. Only 35 percent of respondents said their organizations are ‘very prepared’ for potential changes in sanctions regimes, down from 44 percent in 2025.
Dowd says the findings should serve as a warning for leadership teams and boards evaluating enterprise resilience.
‘These findings offer an important signal for C suites and their boards. As risks continue to evolve, organizations benefit from taking a clear view of where they may be exposed and reinforcing their defenses,’ he adds.
‘That starts with rigorously identifying the most consequential vulnerabilities and taking a pragmatic approach to addressing them.’
Natalie Bannerman
Natalie is a former telecoms and infrastructure journalist, a role she held for nearly seven years. Before this, she worked in the B2C startup space, covering lifestyle, arts and culture reporting. As senior reporter for Governance Intelligence she...
