The regulatory environment in 2026 is defined not by reduced enforcement, but by fragmented enforcement. While some organisations have interpreted shifts in federal enforcement priorities as a sign of softening, many state attorneys general and state agencies have moved aggressively to fill the resulting gaps.
The 2026 Norton Rose Fulbright Annual Litigation Trends Survey found that more than eight in ten general counsel reported increased state enforcement activity in response to shifting federal priorities.
The US Supreme Court's decision overturning Chevron deference has compounded this complexity. Agency interpretations are now more vulnerable to judicial challenge; governance teams are recalibrating risk assumptions; and litigation strategy in some sectors has shifted toward more direct judicial engagement on regulatory questions. Even where overall case counts may decline in particular categories, the environment has become more difficult to assess and harder to prepare for.
Cybersecurity and Data Privacy: The Leading Edge of Risk
Cybersecurity and data privacy is the top area of heightened dispute exposure in 2026. More than half of all respondents report increased federal- (56 percent) and state-level (53 percent) exposure. Data breaches or cybersecurity incidents are the most-cited class action trigger for 2026, cited by 56 percent of respondents.
Privacy law class action litigation has entered a new phase of heightened activity, with a surge in cases driven by technological advances, legislative changes, and evolving judicial interpretations.
AI-Driven Disputes: The New Frontier
Entering 2026, litigators see a landscape defined by AI-driven disputes. Plaintiffs are increasingly bringing suits over AI claims, spanning copyright, employment, and securities fraud. Current securities litigation trends are likely to continue through 2026, with plaintiffs testing the limits of when expert opinions and short-seller reports can be credited at the motion-to-dismiss stage.
The use of AI in legal workflows introduces its own liability considerations. AI vendors frequently disclaim accuracy obligations and cap liability at the fees paid for the software. When AI-assisted work product fails—whether through a missed obligation, inaccurate summary, inconsistent treatment of similar provisions, or incomplete review coverage—the vendor generally does not bear responsibility for the consequences. Counsel and their clients do.
Securities Litigation: Elevated Activity Persists
Securities class action filings remained elevated in 2025, with 207 new securities class actions filed in federal and state courts, signaling that robust activity will likely persist into 2026. As Skadden's securities litigators observe, the securities litigation arena is poised for continued evolution, with strategies presenting both challenges and opportunities for companies, investors and practitioners alike.
International Arbitration: Efficiency and Expansion
The International Chamber of Commerce has revised its arbitration rules effective 1 June 2026, introducing new procedures focused on streamlining proceedings and enhancing effective case management. A central objective of the 2026 ICC Rules is to further promote speedy dispute resolution through expanded use of streamlined arbitration proceedings. The scope of the Expedited Procedure Provisions is broadened, and the emergency arbitration framework has been significantly expanded.
Parties are increasingly looking to resolve complex, multi-jurisdictional disputes through arbitration. Tariff-related disputes and other US government policy changes are driving a surge in commercial arbitrations, while post-M&A disputes and digital asset disputes are expected to rise.
"The general counsel who will do best in 2026 will be those who see across practice areas and anticipate how regulatory and litigation pressures compound."
— Global Litigation Trends Report 2026
Strategic Implications for Clients
Organisations navigating this environment most effectively are not simply those adopting AI most aggressively or avoiding it altogether—they are the ones redesigning litigation workflows to remain reliable and defensible when regulatory pressure, operational complexity and AI-assisted execution intersect.
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