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Corporate Compliance Insights
Home Governance

In-House Counsel Less Confident They’re Ready for Litigation

Audit leaders focusing on AI and data analytics, while boards are looking at M&A and strategic partnerships

by Staff and Wire Reports
January 29, 2026
in Governance, Internal Audit

CCI staff share recent surveys, reports and analysis on risk, compliance, governance, infosec and leadership issues. Share details of your survey with us: editor@corporatecomplianceinsights.com.

Counsel litigation confidence drops dramatically

The share of corporate counsel who feel “very prepared” to address litigation over the next 12 months declined to 29% from 46%, even as the average number of lawsuits against organizations fell to 48 from 62, according to Norton Rose Fulbright’s annual survey on litigation trends.

The survey of more than 400 US general counsel and in-house litigation leaders found that cybersecurity remains the dominant threat, with 38% reporting increased exposure to cybersecurity and data privacy disputes in 2025, the only dispute type where actual exposure outpaced predictions. Some 77% are increasingly concerned about “nuclear verdicts” surpassing $10 million, while 58% cite greater concern about “thermonuclear verdicts” exceeding $100 million.

Regulatory proceedings declined sharply, with 56% of organizations involved in at least one regulatory matter in 2025, down from 70% in 2024. However, 82% report increased state enforcement activity in response to shifting federal priorities. 

Gartner: Audit chiefs prioritize AI and data analytics for 2026

More than 70% of chief audit executives say building a culture of innovation and better leveraging data analytics and generative AI to support audit are important or extremely important priorities in 2026, according to a survey from Gartner.

The survey of 119 chief audit executives (CAEs) found that 83% of audit functions are piloting or using AI, with another 12% planning to do so within the year. However, CAEs report low confidence in achieving their AI objectives, with progress often limited by poor data quality, lack of technical development skills and in some cases access to the technology. Despite significant investment in data analytics, many audit departments report they have not realized expected performance gains from the technology.

The top priorities for CAEs in 2026 relate to technology as a means to meet demands for expanded audit coverage and deliver greater value amid resource constraints and a rapidly changing risk environment. Audit functions that successfully adopt AI realize benefits including faster reporting cycles, accelerated anomaly detection and adaptive risk assessment and monitoring solutions.

M&A and strategic partnerships top board priorities for 2026

Pursuing growth through M&A and strategic partnerships topped the list of board priorities for 2026, cited by 40% of directors, according to a survey from Corporate Board Member and Diligent Institute.

The survey of over 200 US public company board members found that M&A ranks as the second-highest capital allocation priority for 2026 at 37%, behind technology adoption and integration at 42%. Despite this focus on deal-making, only 1% of directors cite M&A landscape and corporate valuations as a concern, while 55% view a sharp downturn in the US economy as the biggest risk facing their organizations in 2026.

AI has rapidly infiltrated boardrooms, with 38% of directors saying deploying AI technology across the business is a top priority. However, only 8% report having strong AI expertise among their ranks — the lowest level of expertise across all areas surveyed — and 40% say AI is among the most challenging issues for boards to oversee. Some 84% of directors have strengthened their scenario-planning approach in some way, with 58% adding economic shocks and 56% incorporating regulatory policy shifts into their exercises.

Other key findings:

  • Some 58% of directors want less presentations and more time for strategic planning at board meetings.
  • “AI expertise” ranked fourth on the list of desired attributes for new board appointees, while only 8% of boards have strong AI expertise.
  • Nearly half of directors now receive real-time or near-real-time operational data between meetings, yet 53% say they don’t often receive such data.

Tags: Board of DirectorsMergers and Acquisitions
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