AI Advancements Remain Top Implementation Challenge in 2026: Sedgwick

Organizations cited the rapid pace of AI advancements as the leading implementation challenge.

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AI risk, supply chain disruptions, workforce transformation and global resilience are some of the top trends projected to pose additional risk to today’s supply chains, according to Sedgwick’s 2026 forecasting report.

“Navigating risk in 2026 is about planning for what you don’t know is coming, not just what keeps you up at night right now,” says Mike Arbour, CEO, Sedgwick. “This report should serve as a guide for companies across industries. Preparation, resilience, and long-term success is contingent upon having a full spectrum understanding of the present and future risk.”

Key takeaways:

·        AI risk, readiness and governance. As AI rapidly reshapes claims and risk, organizations cited the rapid pace of AI advancements as the leading implementation challenge. Data shows 70% report having AI risk committees in place; 14% are fully prepared for AI deployment; and 31% struggle to keep pace or are behind in AI preparation.

·        Catastrophe risks and recovery challenges. Extreme weather, property exposure, and labor shortages are driving up costs, stretching timelines, and adding new layers of complexity and risk to all industries. Agility, proactive planning, and technology are critical amid shifting risk profiles. Data shows 75% are experiencing some degree of labor friction due to immigration-related access hindrance; 11% are experiencing severe critical or severe labor access challenges due to immigration-related impact; and 76% expect moderate to severe insurance pressure from CAT challenges.

·        Supply chain disruption and adaptation. Supply chain risk is being exacerbated by geopolitical instability, shifting trade policies, regulatory upheaval, and global events. Consistent challenges have emerged from supplier concentration, logistic disruptions, and cyber threats. Data shows 66% report negative impact from U.S. trade policies; 65% cite economic and geopolitical volatility as primary supply chain concern; and 38% flag cybersecurity as structural supply chain vulnerability.

·        Workforce transformation and talent management. Companies must reimagine leadership, focusing on people skills, team-building, career mobility and purposeful mentorship as AI brings both challenges and opportunities. Data shows 32% cited changing employee expectations as the leading talent challenge; 47% cited difficulties in transferring leadership skills as a barrier to success; and 20% cited VR/AR as a priority tool in reducing injuries.

·        Global risk and resilience. Persistent instability is the hallmark of global risk strategies now and in 2026. Organizations face relentless volatility from a number of sources, often all at once. As risk exposures rise faster than preparedness, agile scenario planning and staged interventions will be critical moving forward. Data shows 3% of organizations are fully prepared for all global risks; 56% cited geopolitical instability as the top risk; this was the single highest concern across all sectors and regions; and 50% cited cyber as a critical risk exposure.

 

"Anticipating what’s next and navigating the unexpected will be the differentiators between success and failure in 2026,” says Dave Arick, managing director, global risk management, Sedgwick. “At Sedgwick, we are prepared and ready to empower organizations and clients to adapt, innovate, and thrive in a rapidly evolving world.”

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