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Gartner Predicts AI Regulatory Violations Will Result in a 30% Increase in Legal Disputes for Tech Companies by 2028

Only 23% of IT Leaders Are Very Confident in Their Organization’s Ability to Manage Security and Governance Components When Rolling Out GenAI Tools

STAMFORD, Conn, October 6, 2025 – By 2028, AI regulatory violations will result in a 30% increase in legal disputes for tech companies, according to Gartner, Inc., a business and technology insights company. 

A May through June 2025 Gartner survey of 360 IT leaders involved in the rollout of generative AI (GenAI) tools found that over 70% indicated that regulatory compliance is within their top three challenges for their organization’s widespread GenAI productivity assistants deployment. 

Only 23% of respondents are very confident in their organization’s ability to manage security and governance components when rolling out GenAI tools in their enterprise applications.

“Global AI regulations vary widely, reflecting each country’s assessment of its appropriate alignment of AI leadership, innovation and agility with risk mitigation priorities,” said Lydia Clougherty Jones, Sr. Director Analyst at Gartner. “This leads to inconsistent and often incoherent compliance obligations, complicating alignment of AI investment with demonstrable and repeatable enterprise value and possibly opening enterprises up to other liabilities.” 

At the same time the impact from the geopolitical climate is steadily growing, but the ability to respond lags behind. Fifty-seven percent of non-U.S. IT leaders from the same survey indicated  that the geopolitical climate at least moderately impacted GenAI strategy and deployment, with 19% of respondents reporting it has a significant impact. 

Yet, nearly 60% of those respondents reported that they were unable or unwilling to adopt non-U.S. GenAI tool alternatives.

AI Sovereignty Plays Key Role in AI Strategy

In a Gartner September 3, 2025 webinar poll, 40% of the 489 respondents indicated that their organization’s sentiment to AI sovereignty – defined as the ability of nation-states to control the development, deployment, and governance of AI technologies within their jurisdictions – is “positive” (as in viewed with hope and opportunity), and 36% indicated their organization’s sentiment was “neutral” (as in taking a “wait and see” approach).

In the same poll, 66% of the respondents indicated they were proactive and/or engaged in response to sovereign AI strategy, and 52% indicated that their organization was making strategic or operating model changes as a direct result of sovereign AI.

With GenAI tools, such as GenAI productivity assistants, becoming more ubiquitous in uncertain and fluctuating geopolitical and legal environments, especially with AI sovereignty in mind, IT leaders must immediately strengthen the moderation of outputs by taking the following steps:

  • Engineer self-correction by training models to self-correct and not answer certain questions in real time, communicating instead a phrase such as “beyond the scope.” 
  • Create rigorous use-case review procedures that evaluate the risk of “chatbot output to undesired human action,” from legal, ethical, safety and user impact perspectives; use control testing around AI-generated speech, measuring performance against the organization’s established risk tolerance.
  • Increase model testing/sandboxing by building a cross-disciplinary fusion team of decision engineers, data scientists, and legal counsel to design pre-testing protocols and test and validate the model output against unwanted conversational output. Document the efforts of this team to mitigate unwanted terms in model training data and unwanted themes in the model output.
  • Inject content moderation techniques such as “report abuse buttons” and “AI warning labels.” 

Gartner clients can read more in  How Global AI Policy and Regulations Will Impact Your Enterprise.

Additional leadership trends will be presented during Gartner IT Symposium/Xpo, the world’s most important conference for CIOs and other IT executives. Gartner analysts and attendees will explore how to become agents of change in their organizations and harness AI for successful digital transformation. Follow news and updates from the conferences on X and LinkedIn using #GartnerSYM, and on the Gartner Newsroom.

Upcoming dates and locations for Gartner IT Symposium/Xpo include:

October 20-23, 2025 | Orlando, FL

October 28-30, 2025 | Yokohama, Japan

November 10-13, 2025 | Barcelona, Spain

November 17-19, 2025 | Kochi, India

About Gartner AI Use Case Insights

Gartner AI Use Case Insights is an interactive tool that helps technology and business leaders efficiently discover, evaluate, and prioritize AI use cases to potentially pursue. Clients can search over 500 use cases (applications of AI in specific industries) and over 380 case studies (real world examples) based on industry, business function, and Gartner’s assessment of potential business value. Clients can access the interactive tool at https://tools.gartner.com/use-case-insights

About Gartner for Data & Analytics Leaders

Gartner for Data & Analytics Leaders provides actionable, objective insights to CDAOs and data & analytics leaders to help them accelerate their D&A strategy and operating model to increase business value. Additional information is available at https://www.gartner.com/en/data-analytics.

Follow news and updates from Gartner for D&A Leaders on X and LinkedIn using #GartnerDA. Visit the Gartner Newsroom for more information and insights.

Media contact

Matt LoDolce
Gartner
matt.lodolce@gartner.com

About Gartner

Gartner (NYSE: IT) delivers actionable, objective business and technology insights that drive smarter decisions and stronger performance on an organization’s mission-critical priorities. To learn more, visit gartner.com.

Media contact

Matt LoDolce
Gartner
matt.lodolce@gartner.com

Meghan Moran
Gartner
meghan.moran@gartner.com

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