TLDR: A Gartner report predicts that legal disputes for technology companies will increase by 30% by 2028 due to violations of AI regulations. This surge is attributed to inconsistent global AI regulations and a lack of confidence among IT leaders in managing the security and governance of generative AI (GenAI) deployments. Over 70% of IT leaders view regulatory compliance as a top challenge for GenAI adoption.
Artificial Intelligence (AI) regulatory violations are projected to cause a significant 30% increase in legal disputes for technology companies by the year 2028, according to a recent report by Gartner, a prominent business and technology insights company. This forecast, released on October 6, 2025, highlights the growing complexities and challenges faced by the tech industry in navigating the rapidly evolving landscape of AI governance.
The primary driver behind this anticipated surge in legal battles is the widespread inconsistency in global AI regulations. Lydia Clougherty Jones, Senior Director Analyst at Gartner, stated, ‘Global AI regulations vary widely, reflecting each country’s assessment of its appropriate alignment of AI leadership, innovation and agility with risk mitigation priorities.’ She further elaborated that ‘This leads to inconsistent and often incoherent compliance obligations, complicating alignment of AI investment with demonstrable and repeatable enterprise value and possibly opening enterprises up to other liabilities.’
The report also sheds light on the internal struggles within organizations regarding AI deployment. A striking statistic reveals that over 70% of IT leaders consider regulatory compliance among their top three challenges for the widespread deployment of GenAI productivity assistants. Compounding this issue, only 23% of these leaders expressed high confidence in their organization’s ability to effectively manage the security and governance components when integrating GenAI tools into their enterprise applications. This low confidence suggests a significant gap between the rapid adoption of GenAI and the preparedness of IT departments to handle its associated risks and compliance requirements.
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In addition to regulatory inconsistencies and internal confidence deficits, geopolitical factors and concerns over AI sovereignty are further complicating strategic decisions for tech firms. The report underscores that the impact of the geopolitical climate is steadily growing, yet the industry’s ability to respond effectively lags behind. This multifaceted challenge necessitates a more robust and harmonized approach to AI regulation and internal governance to mitigate future legal and operational risks.
