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AI: The opportunity that changes everything — and challenges everything.
AI isn’t just another technology trend; it’s a seismic shift rewriting the rules of risk and claims. It’s creating tension everywhere: between risk and opportunity, humans and machines, safety and security.
AI is fueling GDP growth, but it’s also accelerating human displacement in roles that don’t require empathy or judgment. That’s uncomfortable — and it should be.
External survey results show organizations are racing to formalize AI oversight, with a large majority reporting dedicated AI risk committees and most actively updating strategies. Yet, only 14% feel fully prepared for AI deployment, and a striking gap remains between governance on paper and true operational readiness. The biggest obstacles? The rapid pace of AI change, difficulties in turning policy into practice, data privacy, regulatory uncertainty, and workforce adaptation. These are not just technical challenges — they’re organizational and cultural.
For leaders, this is the moment of truth. Playing it safe won’t solve hard problems. The winners of 2026 will be those who embrace complexity, experiment boldly, and bridge the gap between value and risk. Governance, data privacy, and cyber security aren’t optional; they’re the foundation for transformation. Success will depend on aligning people, policy, and technology — simultaneously and relentlessly.
The AI governance-infrastructure gap
Organizations have formalized AI oversight structures at scale, but operational readiness has not kept pace. Seven in ten companies report dedicated AI risk committees, and the majority are proactively updating strategies. However, the foundation required to operationalize these governance frameworks remains incomplete.
70%
AI Risk Committees
Cross-functional oversight in place
67%
Infrastructure Progress
Currently upgrading systems
41%
Dedicated AI Governance
Have an AI governance Team
61%
Proactive Strategy
Updating risk approaches actively
12%
AI Risk Committees
Rely on external consultants
14%
Infrastructure Ready
Fully prepared for AI deployment
48%
Developing Policies
Governance guardrails in progress
31%
Proactive Strategy
Struggle to keep pace or behind in preparation
The data reveals a striking disconnect: Formal oversight structures are widespread, but the technical foundation to operationalize AI safely remains incomplete. This 56-percentage-point gap between committee formation and infrastructure readiness signals that governance is advancing on paper while production capabilities struggle to keep pace.
AI change is outpacing organizations.
Top unexpected obstacles
Organizations cite the rapid pace of AI change as the leading implementation challenge, followed by difficulties in governance execution and data privacy complexities. Regulatory uncertainty and change management tie as significant hurdles.
These barriers are predominantly organizational and process-oriented rather than purely technical, indicating that success depends on aligning people, policy and technology simultaneously.
01
Pace of AI change
Technology evolves faster than adoption cycles
02
Governance implementation
Converting policy into operational practice
03
Data privacy and security
Managing sensitive information at scale
04
Regulatory hurdles
Navigating evolving compliance landscapes
05
Change management
Adapting workforce and skill development
Sedgwick leader perspective
Leading change today, preparing for tomorrow.
Complexity isn’t something to avoid — it’s where the future is being shaped. At Sedgwick, we’re not reacting to change; we’re anticipating it. Today, that means using advanced analytics and AI to address some of the most persistent challenges in our industry: reducing frontline churn, eliminating inconsistency, and improving outcomes at scale. Our guiding principle remains clear — service delivery.
AI isn’t a shortcut for cost-cutting. It’s a tool for transformation. We’re applying it to streamline interactions, resolve issues faster, and communicate proactively so customers aren’t left waiting. Machine learning helps us reduce friction and minimize errors, improving SLAs without sacrificing quality or the human touch. Even as we leverage AI’s full potential, we remain committed to a human-centered approach.
But the bigger question is what’s next. How will workers’ comp evolve in an AI-driven world? What happens when robotics and intelligent machines redefine risk and liability? The boundaries of risk are shifting rapidly, creating new challenges — and new opportunities. Those who succeed will be the ones willing to experiment, rethink workflows, and use AI to build resilience and empower people.
AI is the greatest opportunity our industry has ever seen — it’s also opening doors to possibilities we haven’t even imagined yet.”
— Jason Landrum, Chief Information Officer
01
Beyond governance: Real leadership means bold experimentation
Oversight from an AI risk committee is already table stakes. The real difference-makers will be organizations that can embrace uncertainty, experiment at scale and move past simply “checking the box.” Those who are willing to actively test, learn and adapt in real-world environments are the ones who won’t just understand the future of risk — they’ll help to shape it.
02
Infrastructure modernization: The race to AI-ready heats up
Even as most companies work to catch up, the pace is accelerating. Early adopters with agile data ecosystems and strategic tech partnerships are pulling ahead, unlocking advanced AI capabilities others are only beginning to imagine. The next wave of transformation will come from those who treat infrastructure not as a one-time upgrade, but as a platform for continuous innovation.
03
AI-powered workflow reinvention: Move from automation to orchestration
Forget isolated automation. Tech-forward leaders are reimagining entire workflows — integrating AI to optimize every step, drive smarter decisions and deliver more seamless, personalized experiences. It’s all about orchestrating people, data and technology to create new business models — and leapfrog competitors.
04
Human-centered AI: We’re empowering empathy, not replacing it
The future isn’t about machines taking over (we hope). Instead, it’s about AI amplifying what makes us human. By automating routine tasks, AI frees up talent for higher-impact, more empathetic work. Those organizations that thrive will use AI to elevate human judgment, creativity and connection, turning technology into a pathway to deeper relationships and better outcomes.
“AI isn’t just a tool for efficiency — it’s an engine for bold transformation. When we use technology to cut out the friction, improve outcomes and let people focus on what matters most, that’s when we really unlock the potential of our business and our industry.”
— Vishy Padmanabhan, Chief Transformation Officer
