Employee Resistance to AI Becomes UAE Firms' Top Workforce Risk: Report
New research shows UAE organizations are investing in AI but lagging in employee preparedness, governance, and cross-functional collaboration.
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[Image: Chetan Jha/MITSMR Middle East]
As UAE businesses accelerate AI adoption, a new risk is emerging from within the workforce. Employee resistance to artificial intelligence has overtaken cybersecurity skills shortages and rising healthcare costs as organizations’ top people concern, even as many remain unprepared to manage AI-driven risks such as misinformation and data privacy.
The findings come from Marsh’s People Risks 2026 report, based on responses from 103 HR and risk professionals in the UAE as part of a global survey of 4,500 professionals across 26 markets.
The report suggests that organizations are confronting a paradox. AI adoption continues to accelerate, but the organizational capabilities needed to support that transformation—from employee readiness and cross-functional governance to risk literacy—are lagging behind.
The survey found that only 38% of UAE organizations are training employees to identify AI-generated misinformation, while 34% provide training on cybersecurity vulnerabilities associated with AI tools. One-third (33%) encourage employees to critically evaluate AI-generated content, and just 32% train staff to prevent AI-related data privacy breaches.
These figures point to a rising governance challenge. As generative AI becomes embedded across enterprise workflows, managing AI risk increasingly depends on employee behavior rather than on technology controls alone. Without adequate training, organizations risk exposing themselves to misinformation, privacy breaches, and poor decision-making driven by overreliance on AI-generated outputs.
The report also highlights gaps in organizational coordination. Only 40% of surveyed organizations said HR and risk teams collaborate fully on workforce risk management. Another 40% described the collaboration as partial, while one in five characterized it as minimal. Marsh argues that people risks can no longer be managed solely within HR and instead require closer alignment between HR, risk, finance, and executive leadership.
“The findings show that people risks in the UAE have evolved far beyond traditional workforce issues,” said Adel Alderi, Business Development Leader at Mercer Marsh Benefits UAE. “They are now directly linked to business continuity, digital transformation, employee well-being, and organizational resilience.”
While AI now dominates the workforce risk agenda, more traditional concerns remain significant. Nearly two-thirds (62%) of respondents expect healthcare and employee benefit costs to continue rising, while an equal proportion believes unsafe physical or psychological working conditions could materially affect organizational performance. At the same time, 29% of respondents said their organizations do not provide adequate mental health support for employees.
The report also identifies workforce due diligence during mergers and acquisitions as the UAE’s third-largest people risk, warning that insufficient attention to workforce integration, culture, and talent can create financial and operational challenges after deals close.
The findings show that as enterprises integrate AI into everyday operations, competitive advantage may depend less on deploying the technology itself than on preparing employees to use it responsibly, critically, and securely.
