As Indian organizations accelerate their adoption of artificial intelligence and digital technologies, new workforce-related challenges are emerging that could significantly affect business performance.
According to Marsh's 2026 People Risks Report, concerns surrounding AI readiness, employee training, cyber awareness, leadership effectiveness, and workforce well-being are increasingly becoming strategic business risks rather than purely human resource issues.
The report surveyed more than 4,500 HR and risk professionals across 26 global markets, including 311 respondents from India. The findings indicate that technology-related concerns now account for four of the top ten people risks facing organizations in the country.
One of the most significant findings of the report is the growing concern over organizational preparedness for AI implementation.
Many companies are investing heavily in AI tools and automation technologies to improve productivity and competitiveness. However, the report suggests that workforce readiness is not always keeping pace with these investments.
Nearly half of Indian organizations surveyed expressed concern that they may be investing in AI technologies without adequately preparing employees through training and upskilling initiatives.
The study found that:
52% of HR and risk professionals are concerned about limited knowledge of AI risks and mitigations.
49% believe their organizations are investing in AI without sufficient employee training and upskilling.
43% cited employee resistance driven by fears of job losses or change fatigue as a growing risk.
These findings suggest that while AI adoption is accelerating, many employees remain uncertain about how emerging technologies will affect their roles and career prospects.
Workplace experts increasingly view AI-related anxiety as a factor that can reduce employee engagement, productivity, and innovation. Employees who fear job displacement may be less willing to embrace new technologies, potentially slowing digital transformation efforts.
Commenting on the findings, Sanjay Kedia, CEO and President of Marsh India, emphasized the growing importance of workforce-related risks.
He said:
"People risks in India can no longer be treated as secondary concerns; they are directly shaping business outcomes. From the growing expectations gap between employers and employees, to the cyber vulnerabilities created by human behavior, to the productivity lost to AI anxiety and skills gaps, these challenges sit at the heart of how Indian organizations will perform and compete,"
Kedia further added:
"In 2026, resilience depends on how intentionally organizations invest in their workforce building digital capability, closing the expectations gap, and ensuring their people are equipped to navigate an increasingly complex environment,"
His remarks underscore a growing consensus that workforce development is becoming a critical component of organizational resilience.
Despite increasing concerns around AI and technology, healthcare costs remain the most significant people-related risk for Indian organizations.
According to the report, 65% of respondents expect employee health and benefit costs to rise over the next one to two years.
Many organizations are expanding employee healthcare benefits to attract and retain talent. However, respondents indicated that benefit decisions are often made without fully considering long-term financial sustainability or employee wellness outcomes.
As healthcare expenses continue to increase, businesses may face additional pressure to balance employee well-being with cost management objectives.
The report highlights persistent labour shortages as another major concern for HR professionals.
Organizations across sectors continue to face challenges in recruiting and retaining workers with specialized digital and technical skills.
The shortage of advanced technology professionals reflects a widening gap between companies' digital ambitions and the capabilities available within the workforce.
As AI, cloud computing, cybersecurity, and data analytics become core business functions, competition for skilled professionals is expected to intensify further.
The study also found that inadequate supervisory and leadership capabilities could significantly amplify organizational risks.
About 62% of respondents said weak leadership could have a catastrophic or high impact on their organizations.
Strong leadership is increasingly viewed as essential for managing workforce transitions, driving innovation, and maintaining employee trust during periods of rapid change.
Cybersecurity emerged as one of the most important workplace risks identified in the report.
The findings indicate that cyber resilience is no longer determined solely by technology investments. Employee awareness, decision-making, and behaviour are now considered critical components of organizational security.
Inadequate cyber threat literacy ranked as the third-largest people risk in India, highlighting the need for regular training, awareness campaigns, and stronger digital governance practices.
As cyberattacks become more sophisticated, organizations are increasingly recognizing that human error remains one of the biggest security vulnerabilities.
Beyond technology-related challenges, the report also highlighted growing concerns around employee well-being.
More than half of respondents expressed concern about insufficient support for mental health and emotional well-being within organizations.
Additionally, 41% said unsafe physical or psychological working conditions could have a severe impact on business operations.
These findings reflect a broader shift among employers toward creating healthier, safer, and more supportive workplaces as part of long-term talent management strategies.
The report suggests that organizations that manage people risks effectively often achieve stronger business performance.
Globally, 53% of respondents reported higher workforce productivity and efficiency, while 51% said effective people-risk management helped accelerate strategic priorities such as AI adoption and sustainability initiatives.
In India, 40% of respondents said HR and risk management teams fully collaborate, while 44% reported partial collaboration.
The findings suggest that stronger coordination between these functions could help organizations respond more effectively to emerging workplace challenges and build greater resilience.
Marsh's 2026 People Risks Report highlights a significant shift in how organizations must view workforce-related challenges in the age of artificial intelligence.
While AI offers substantial opportunities for productivity and innovation, concerns around employee readiness, skills shortages, cyber awareness, leadership effectiveness, mental health, and rising healthcare costs are creating new business risks.
The findings suggest that organizations that invest strategically in workforce development, employee well-being, and cross-functional collaboration will be better positioned to unlock the benefits of AI while maintaining resilience in an increasingly complex business environment.
As India's digital transformation accelerates, the human dimension of technology adoption is likely to become one of the most important determinants of long-term business success