The Algorithm Economy: Emerging Tech, Escalating Risks

Today, we’re unpacking findings from the 2026 Womble Bond Dickinson Client Survey, which paints a clear picture of where business leaders are right now. Innovation—especially artificial intelligence—is accelerating faster than the rules meant to govern it. And that gap is creating both opportunity and real risk. 

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• Emerging Tech, Escalating Risks: What Corporate Leaders Reveal in the Womble Bond Dickinson Client Survey

About the authors

• Tara Cho
• John Gray
• Mark Henriques
• Chris Jones 

Transcript

Welcome to Womble Perspectives, where we explore a wide range of topics, from the latest legal updates to industry trends to the business of law. Our team of lawyers, professionals and occasional outside guests will take you through the most pressing issues facing businesses today and provide practical and actionable advice to help you navigate the ever changing legal landscape.

With a focus on innovation, collaboration and client service. We are committed to delivering exceptional value to our clients and to the communities we serve. And now our latest episode.

Host 1:
Welcome to Womble Perspectives. Today, we’re unpacking findings from the 2026 Womble Bond Dickinson Client Survey, which paints a clear picture of where business leaders are right now. Innovation—especially artificial intelligence—is accelerating faster than the rules meant to govern it. And that gap is creating both opportunity and real risk.

Host 2:
And that tension defines the modern digital landscape. Companies have moved past the experimentation stage and are now implementing AI at scale, sometimes before fully understanding the operational, legal, and governance implications. Now that AI adoption has become expected, success depends as much on discipline and oversight as it does on speed.

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When leaders were asked where they’re seeking the most guidance, emerging technology topped the list by a wide margin. Two themes dominate the conversation: balancing technology implementation with compliance, and weighing risk versus reward. More than half of respondents cited both.

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And those pressures are especially intense in sectors like Technology, Energy and Natural Resources, and Aerospace and Defense. These industries are moving fast, but they’re also highly regulated, which makes missteps particularly consequential.

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Within emerging technology, AI clearly leads the conversation. Respondents expressed strong interest in AI adoption strategies, use cases, and economics, but just as much focus on governance issues like risk, compliance, privacy, and ethics.

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Cybersecurity also looms large. AI‑driven threats are top of mind, and interestingly, respondents specifically called out WBD’s AI governance thought leadership as some of the most valuable guidance they receive. That tells us organizations are looking for practical, business‑ready answers, not just theory.

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What stands out is that concern doesn’t stop at regulation. Leaders are thinking about legal exposure from rapid deployment, the environmental and energy demands of data centers, and what it means to delegate critical decisions to automated systems.

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Right. AI risk is no longer abstract. It affects daily workflows, vendor relationships, workforce dynamics, and accountability when something goes wrong.

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Even beyond AI, respondents highlighted several adjacent risk areas. Cybersecurity remains a top concern, followed closely by regulatory and compliance risk, corporate and M&A activity, and intellectual property protection.

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There’s also interest in ESG and sustainability, global and cross‑border transactions, energy transition, and dispute resolution. AI may dominate the conversation, but it’s clearly interconnected with broader enterprise risk.

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When respondents were asked specifically about tech‑related regulatory and compliance risks, the answers were striking. Using fair and unbiased AI systems topped the list, followed closely by preparing for data breaches and integrating privacy safeguards into digital products.

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Building and maintaining internal AI governance frameworks and keeping pace with cross‑jurisdictional regulation weren’t far behind. Very few respondents expressed uncertainty here, which signals that AI governance is now seen as an immediate operational requirement, not a future problem.

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That urgency shows up even more clearly in disputes and enforcement concerns. Data breach and privacy claims were rated the highest‑intensity risk, with more than three‑quarters of respondents expressing concern.

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AI and cybersecurity inquiries, digital compliance audits, and AI‑related liability, including class actions, are also rising fast. While AI scrutiny is growing, data privacy remains the most consistently high‑risk area.

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For organizations engaged in digital transactions, risk goes beyond just deployment. Cybersecurity obligations, data ownership and portability, intellectual property rights in AI‑generated outputs, and liability allocation all factor into dealmaking.

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At the same time, nearly a third of respondents said they’re not directly involved in digital transactions, which reinforces the need for role‑specific guidance. What matters to a deal team may differ from what matters to operations or compliance.

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All of this is playing out against a shifting regulatory backdrop. Federal policy has moved toward an innovation‑first approach under Executive Order 14365, signed in December 2025.

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But critically, that order does not preempt state AI laws. Companies are still navigating a fragmented environment shaped by active state‑level regulation and emerging requirements, including the phased implementation of the EU AI Act.

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Despite the uncertainty, most organizations are staying the course on AI adoption. Forty‑two percent say their AI plans haven’t changed, even as many cite lack of regulatory clarity and the absence of a cohesive federal framework.

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Confidence is split. About half say they’re confident in their ability to manage evolving AI enforcement, while nearly as many remain unsure. That divide reflects just how fast this space is moving.

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One area where there’s little debate is data privacy. Respondents continue to prioritize robust security measures, managing third‑party vulnerabilities, and strengthening consent and user‑rights processes.

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Yes, privacy remains foundational. No matter how advanced the technology, a data breach or misuse of personal data can quickly undermine trust and value.

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So what does all of this tell us? Organizations are operating in a world where implementation is outpacing understanding. Leaders are committed to AI and emerging technologies, but they know speed alone isn’t enough.

Host 2:
Winning in the Algorithm Economy requires building governance, operational discipline, and risk management structures fast enough to keep up with technologies that promise enormous value but aren’t yet fully understood. And that’s the defining challenge ahead.

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