Get Ready for A Lot of AI Regulatory Violation Lawsuits
As we approach 2028, the landscape for technology companies is set to shift dramatically, with a projected 30% increase in legal disputes stemming from AI regulatory violations. This alarming trend is underscored by a recent survey conducted by Gartner.
Survey Insights
Between May and June 2025, Gartner surveyed 360 IT leaders involved in the deployment of generative AI (genAI) tools. The results revealed that over 70% of these leaders consider regulatory compliance one of their top three challenges when implementing genAI productivity assistants.
Moreover, only 23% of respondents expressed strong confidence in their organizations’ ability to manage the security and governance aspects of rolling out genAI tools.
The Impact of Global Regulations
According to Lydia Clougherty Jones, a Senior Director Analyst at Gartner, “Global AI regulations vary widely, reflecting each country’s assessment of its appropriate alignment of AI leadership, innovation, and agility with risk mitigation priorities.” This inconsistency results in complicated compliance obligations for businesses, making it difficult to align AI investments with measurable enterprise value and exposing them to various liabilities.
Geopolitical Factors
The geopolitical climate also plays a significant role in shaping AI strategies. In the same survey, 57% of non-U.S. IT leaders reported that the geopolitical environment moderately impacts their genAI strategies, while 19% stated it has a significant effect. Despite this, nearly 60% of these respondents are either unable or unwilling to adopt non-U.S. genAI tool alternatives.
AI Sovereignty Sentiment
A subsequent Gartner webinar poll conducted on September 3, 2025, revealed that 40% of 489 respondents have a positive sentiment towards AI sovereignty, which refers to a nation-state’s control over the development, deployment, and governance of AI technologies. Meanwhile, 36% of the respondents maintained a neutral stance, indicating a “wait and see” approach.
Additionally, 66% of respondents are proactively engaging with sovereign AI strategies, and 52% reported making strategic or operational changes in response to these strategies.
Recommended Actions for IT Leaders
In light of the increasing prevalence of genAI tools amidst fluctuating geopolitical and legal environments, Gartner advises IT leaders to take several proactive measures:
- Engineering self-correction to adapt to regulatory changes.
- Creating rigorous use-case review procedures to mitigate risks.
- Increasing model testing and sandboxing to ensure compliance.
- Injecting content moderation techniques into their systems to enhance governance.
As the regulatory landscape continues to evolve, it is crucial for technology companies to stay informed and adapt their strategies accordingly to navigate the complexities of AI compliance.
