Will AI regulatory violations lead to a 30% rise in tech firms' legal disputes by 2028?

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Will AI regulatory violations lead to a 30% rise in tech firms' legal disputes by 2028?

Synopsis

New Delhi's tech landscape faces a significant challenge as a recent report forecasts a 30% spike in legal disputes related to AI regulatory violations by 2028. With compliance issues and geopolitical factors at play, the future of AI in business is under scrutiny. What does this mean for companies navigating the complex regulatory environment?

Key Takeaways

  • 30 percent rise in legal disputes expected by 2028 due to AI violations.
  • Over 70 percent of IT leaders cite compliance as a top challenge.
  • Only 23 percent are confident in managing security and governance.
  • 57 percent of non-US leaders report geopolitical impacts on GenAI deployment.
  • Positive sentiment towards AI sovereignty is noted by 40 percent of organizations.

New Delhi, Oct 6 (NationPress) Violations of Artificial Intelligence (AI) regulations are projected to lead to a 30 percent rise in legal disputes among technology firms by 2028, according to a report released on Monday.

More than 70 percent of IT executives reported that ensuring regulatory compliance ranks among their top three challenges when deploying GenAI productivity assistants across their organizations.

Conversely, only 23 percent expressed high confidence in their organization's capacity to manage security and governance aspects during the implementation of GenAI tools in enterprise applications, as noted in a report by Gartner, a leading business and technology insights firm.

“Global regulations surrounding AI differ significantly, reflecting each nation’s view on balancing AI leadership, innovation, and agility with risk management priorities,” stated Lydia Clougherty Jones, Senior Director Analyst at Gartner.

“This results in inconsistent and often confusing compliance requirements, making it difficult to align AI investments with measurable and reproducible enterprise value, which can potentially expose companies to additional liabilities,” Jones further elaborated.

Simultaneously, the influence of the geopolitical landscape is increasingly significant, yet the response capability is lacking.

As much as 57 percent of non-U.S. IT leaders noted that the geopolitical climate has at least a moderate effect on their GenAI strategies and deployments, with 19 percent acknowledging it has a substantial impact.

However, nearly 60 percent of these respondents indicated they were either unable or unwilling to embrace non-U.S. GenAI tool alternatives, as highlighted in the report.

The findings were derived from insights provided by 360 IT leaders involved in the deployment of generative AI tools.

In another survey, Gartner discovered that 40 percent of 489 respondents expressed a “positive” sentiment towards AI sovereignty—defined as the capacity of nation-states to oversee the development, deployment, and governance of AI technologies within their borders—while 36 percent felt their organizations' stance was “neutral”.

While 66 percent indicated they are proactive and engaged regarding sovereign AI strategies, 52 percent reported that their organizations are making strategic or operational adjustments directly in response to sovereign AI considerations.

Point of View

It is imperative to recognize the pressing challenges tech companies face due to evolving AI regulations. The predicted rise in legal disputes highlights the need for businesses to prioritize compliance and governance, aligning their AI strategies with legal frameworks to mitigate risks while fostering innovation.
NationPress
06/10/2025

Frequently Asked Questions

What are the main challenges for IT leaders regarding AI compliance?
IT leaders are primarily concerned about regulatory compliance, with over 70% acknowledging it as a top challenge in deploying generative AI tools.
How confident are organizations in managing AI security and governance?
Only 23% of IT leaders feel very confident in their organization’s ability to handle security and governance when implementing GenAI tools.
What does AI sovereignty mean?
AI sovereignty refers to the ability of nation-states to control the development, deployment, and governance of AI technologies within their jurisdictions.
Nation Press