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AI resistance now top workforce risk for UAE firms, report finds
Mindset barriers to artificial intelligence overtake cyber threats and health costs as biggest concern for UAE employers, according to a survey by global risk advisory firm Marsh
- PUBLISHED: Mon 29 Jun 2026, 7:33 AM
Employee resistance to artificial intelligence (AI) has emerged as the number one workforce risk facing UAE companies, overtaking cybersecurity gaps and rising health costs, according to a report by global risk advisory firm Marsh.
The 2026 People Risks report, which surveyed 103 HR and risk professionals in the UAE as part of a wider poll of 4,500 professionals across 26 markets, found “mindset barriers” to AI adoption topped the list of concerns, followed by inadequate cyber threat literacy, weak due diligence during mergers and acquisitions, labour shortages and regulatory change.
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The findings show people-related risk in the UAE has expanded well beyond traditional HR territory, now touching business continuity, cybersecurity, merger and acquisition (M&A) activity and compliance.
The survey also exposed gaps in internal coordination, with only 40 per cent of UAE firms reporting full collaboration between HR and risk teams. Another 40 per cent said collaboration was only partial, while 20 per cent described it as minimal.
The report calls for closer alignment between HR, risk, finance and leadership teams to help UAE employers navigate the widening risk agenda.
Ramping up training
The report found that the UAE companies are ramping up staff training to manage the fallout from AI adoption as around 38 per cent are training employees to spot AI-generated misinformation, 34 per cent are addressing cybersecurity vulnerabilities tied to AI, 33 per cent are pushing staff to critically review AI-generated content, and 32 per cent are working to prevent data privacy breaches linked to AI tools.
“People risks in the UAE can no longer be treated as secondary workforce issues. They are now directly linked to business continuity, employee wellbeing, digital transformation and organisational resilience,” said Adel Alderi, business development leader at Mercer Marsh Benefits, UAE.
“AI adoption is an important part of the findings, but the wider issue for employers is workforce resilience,” he said, adding that companies are simultaneously contending with rising health costs, mental wellbeing pressures and financial insecurity among staff.
Health, benefit costs
Health and wellbeing pressures remain firmly on the radar despite AI’s rise to the top spot. The report found 62 per cent of UAE firms expect health and benefit costs to keep climbing, while the same proportion warned that unsafe working conditions – physical or psychological – could seriously harm their organisation. Nearly 29 per cent said mental health support for staff remains inadequate.
“As healthcare costs continue to rise, organisations are recognising that workforce health is directly linked to business resilience,” said Simona Musat, Mercer Marsh benefits multinational leader, UAE.
The report singled out inadequate due diligence on workforce issues during mergers and acquisitions as the UAE’s third-biggest people risk, warning that weak scrutiny at the deal stage can lead to financial, operational and reputational fallout once transactions are complete.
The UAE employers’ risk priorities looked markedly different two years ago, when rising health and benefit costs topped the list, followed by technology skills shortages and diversity concerns. By 2026, those issues have been overtaken by AI adoption, cyber literacy, M&A risk, labour shortages and regulatory change.
