U.S. employers are adjusting their workforce strategies as artificial intelligence (AI) adoption grows and priorities shift under the Trump administration, according to a May 6 report from Littler. The firm’s 14th Annual Employer Survey, which gathered input from more than 300 U.S.-based executives, in-house lawyers, and human resources professionals, highlights how issues such as immigration and diversity remain important but are being joined by new concerns like AI and data privacy.
The findings indicate that AI is now the leading area where employers expect policy changes to have an impact over the next year. Eighty-four percent of respondents anticipate business impacts from policy or regulatory shifts related to AI use in the workplace—double last year’s figure. Data privacy regulation also rose as a concern, while immigration and diversity, equity and inclusion (DEI) saw declines in perceived impact compared to previous years.
James A. Paretti Jr., co-chair of Littler’s Workplace Policy Institute, and Shannon Meade, executive director of the institute, said: “The shifts in this year’s survey relating to immigration and DEI do not mean that these issues have dissipated. Rather, businesses appear to be adjusting to a ‘new normal’ in the second year of the Trump administration and turning their attention to what’s coming next – particularly AI – as the workplace policy and regulatory landscape continues to evolve.”
On immigration enforcement, nearly three-quarters of respondents expect action by federal agencies will affect their workplaces over the next year. Many employers have taken steps such as preparing for government audits or inspections (54%), strengthening employment eligibility verification practices (40%), or adjusting visa sponsorship strategies (38%). Jorge R. Lopez, chair of Littler’s Immigration and Global Mobility Practice Group said: “The rapid pace of change in immigration policy over the past year has created significant challenges for businesses in managing day-to-day operations and staffing… But businesses crave predictability – and the fluid nature of the regulatory environment… makes advance planning increasingly difficult.”
As AI becomes more common across workplace functions, organizations are reevaluating staffing needs; some report reassessing job responsibilities or reducing hiring plans due to expected efficiency gains. More than two-thirds say they now have formal policies governing AI use—a substantial increase from last year—but only about half have formal review processes or restrictions on information entered into these tools.
Niloy Ray, co-chair of Littler’s AI & Technology Practice Group said: “AI adoption is moving quickly but governance is still playing catch-up… That mismatch could leave employers vulnerable to significant risk…” Nearly four out of five respondents express concern about potential litigation related to AI within twelve months.
Employers also remain focused on litigation risk across various workplace issues; concern about employment-related litigation tied specifically to accommodation requests has increased since last year’s survey results. Flexible work models continue with hybrid arrangements dominant among roles that can be performed remotely.
Jeff Nowak, co-chair of Littler’s Leave & Accommodation Practice Group said: “Many employers are seeing not only a high volume of leave and accommodation requests with a mental health component but continued increases on top of elevated levels… Leaves and accommodations are among the most challenging workplace requests…” Nearly all respondents face challenges managing extended absences or ensuring managers receive adequate training for handling such requests.
