Leading AI Adoption in Regulated Industries

Regulated Sectors & Legal Teams Tipped to Lead AI Adoption in 2026

Icertis has argued that heavily regulated industries and in-house legal teams will sit at the center of enterprise AI adoption in 2026. As organizations focus on governance, compliance, and contract data, these elements will form the foundation for wider deployment.

The company highlighted sectors such as healthcare, finance, life sciences, and government, which already operate under oversight requirements aligning with the demands for traceable and auditable AI systems. Concerns among senior executives about autonomous AI agents and data security are factors that will keep governance at the forefront of AI strategy.

Regulated Sectors

Sudarshan Chitre, SVP Product at Icertis, framed regulation as a factor that will shape the next phase of adoption rather than slow it down. He stated that organizations with mature compliance disciplines can apply established controls to AI systems.

“In 2026, heavily regulated industries—not big tech or startups—will be the biggest winners from AI,” said Chitre. “While tech firms continue to innovate and commercialize the technology, regulated sectors will unlock the greatest value by using regulation as the blueprint for trustworthy AI at scale.”

Chitre cited executive concerns about autonomy in AI systems, referring to findings from an Icertis study. A significant 56% of C-suite leaders expressed concerns about granting agents the autonomy to make business decisions without suitable guardrails, while 44% admitted a lack of sufficient trust in an agent’s ability to execute tasks autonomously. Data security topped the list of deployment hurdles, followed by compliance and reputational risk.

In regulated environments, organizations already manage processes requiring audit trails, documentation, and accountability. Chitre noted that these practices closely map to the expectations businesses and regulators place on AI systems, particularly in sensitive settings such as healthcare and financial services.

“In high-stakes environments, organizations operate within frameworks demanding traceability, auditability, and transparency,” Chitre added. “This discipline transforms regulation into an engine of trust and positions these industries to lead the next wave of adoption.”

Contract Focus

Icertis develops contract lifecycle management software, positioning contracts as an internal source of structured rules that influence how automation behaves when organizations introduce AI systems that act with more independence.

“Winning with AI means ensuring that autonomous systems operate within the same rules that govern the rest of the business—rules embedded in contracts,” Chitre explained. “Contracts define how revenue is captured, how risk is managed, and how commercial relationships are structured, making them one of the richest and most underutilized data sources for the enterprise.”

The view from Icertis aligns with a broader trend in enterprise software, treating governance, risk, and compliance controls as core requirements for AI rollouts. Large organizations have reported an increasing focus on access controls, data governance, and monitoring as they move from pilots to production deployments.

Chitre suggested that regulated industries could set the pace as companies pursue scale and consistency. “Governance frameworks will shape competitive outcomes,” he noted.

“Together, these dynamics—regulatory discipline plus contract intelligence—will make heavily regulated sectors the model for responsible AI adoption. The organizations that win in 2026 will be those that anchor AI innovation with trusted guardrails,” Chitre concluded.

Legal Leadership

Bernadette Bulacan, Chief Evangelist at Icertis, stated that in-house legal functions will take a more prominent role in AI programs across companies. She described a shift in expectations for General Counsels and legal operations teams as AI becomes integrated into everyday workflows.

“In 2026, the real gift for in-house legal isn’t another tool—it’s a General Counsel who treats AI like a strategic superpower, not a science experiment,” said Bulacan. “Secure, scalable, deeply integrated AI will quickly become table stakes.”

Bulacan also noted that legal teams will face pressures from regulation, workload, and business demand. These factors will shape the pace of change and the willingness of legal functions to move beyond small trials.

“After decades of being seen as the ‘Most Tech-Averse Department,’ in 2026, corporate counsel will surprise the enterprise with a full reputation rebrand as the boldest technology adopters,” she stated. “They will lead full-blown AI rollouts, win innovation awards, and demonstrate how to use these tools effectively.”

Companies across regulated sectors have ramped up investment in governance structures for AI, including model oversight, data usage controls, and automation policies. Icertis expects these efforts to intensify through 2026 as organizations expand AI use into contract workflows and broader business processes.

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