Fewer Than 10% of U.S. Employers Feel Very Prepared for AI’s Impact on Labor Relations, Littler Survey Finds

(September 29, 2026) – Littler, the world’s largest labor and employment law practice representing management, has released its 2026 Labor Survey Report. The survey reveals the growing role of artificial intelligence (AI) in labor relations, as well as how business leaders are adapting employee engagement initiatives in the current landscape.

The report’s second edition draws on responses from 665 in-house lawyers, HR professionals and business executives at unionized and nonunionized organizations. Ninety-three percent are based in the U.S., with the remaining 7% based outside the U.S. at organizations with U.S. operations.

How AI is Reshaping Labor Relations

The survey finds that most respondents (87%) expect unions to use employee fears about AI displacing or changing jobs to fuel organizing interest over the next year. A notable portion also believe that increased AI use will reshape job responsibilities (67%), redistribute work across teams (42%) and reduce entry-level roles (30%). Yet only 9% feel that their organizations are “very prepared” to manage the labor and employee relations issues AI adoption may create.

Concern about job displacement and workforce reductions is already the most common AI-related issue that organizations with unionized employees have encountered in union discussions or collective bargaining negotiations, with 58% noting this issue has emerged. Fifty-six percent say the same of AI-related shifts in job responsibilities or productivity expectations.

However, many organizations appear to be taking a reactive or episodic approach to communicating about those transformations. While most report communicating in some form with employees who are worried about AI impacts, only 17% of employers are doing so proactively and consistently.

“Some employers treat AI as an IT project when it’s really a workplace change project,” said Jonathan Levine, co-chair of Littler’s Labor Management Relations Practice Group. “That’s a mistake. Companies that get ahead of the ‘how will this affect my job and future’ concerns from employees can reduce labor relations risk and give their workforces a reason to help drive the technology forward rather than organize against it.”

The survey also examines how businesses with unionized workforces are using AI in collective bargaining negotiations, finding that adoption is not widespread—43% are not currently using, or even planning to use, AI for this purpose.

What is Missing from Employers’ Labor Relations Strategies

Effective labor relations strategies should be reviewed and updated as workforce and business conditions evolve. Yet just 29% of respondents with a labor relations strategy in place say it has been updated since the start of 2025—a period during which 30% of employers saw employees become more vocal or disruptive on social media and 24% saw the same in public forums.

While most respondents say employee engagement (80%), legal compliance (79%), and manager and supervisor training (74%) are part of their labor relations strategies, fewer employers are focused on other important aspects—namely, addressing business and operational changes that carry workforce impacts (47%) and communications and media strategy (42%). Only 32% cite AI strategy as a component.

“In today’s labor environment, preparedness is a competitive advantage,” said Brooke Niedecken, co-chair of Littler’s Labor Management Relations Practice Group. “Labor relations should be treated like any other critical business risk, not as an afterthought. Employers that invest in proactive planning for union activity and workforce disruption move from reacting under pressure to leading with confidence, protecting both operations and long-term business objectives.”

Among employers with unionized employees, 85% report having a collective bargaining strategy, but just 37% have a strike or work-stoppage contingency plan. The latter is particularly important to maintain operational continuity, given labor’s growing propensity for strikes and more aggressive bargaining tactics.

How Employers are Investing in Employee Engagement Across a Multigenerational Workforce

Employee engagement is an important strategy for proactively identifying and addressing workforce concerns and reducing labor-related risk.

The vast majority of respondents (96%) say their organizations have focused on improving engagement with employees over the past year. Roughly two-thirds have focused on improving employee engagement by providing forums for employees to share feedback (64%), engaging in workplace culture initiatives (62%) and training managers to spot and respond to concerns (61%). However, only 29% are concentrating on analyzing metrics to measure the success of these programs—a crucial factor to their ongoing success.

The challenges of managing a multigenerational workforce are top of mind for employers, too. Nearly 9 in 10 (87%) say their communication and engagement approaches are tailored to the preferences and styles of different generations. However, the survey suggests that there is room for improvement on leadership communications as 51% of respondents say inadequate communication from leadership is a barrier to better employee relationships.

“Creating a workplace where employees across generations are effectively communicated to and with is critical to enhancing overall employee engagement and retention efforts,” said Brendan Fitzgerald, co-chair of Littler’s Labor Management Relations Practice Group. “While much has been said about Gen Z redefining the employer-employee relationship, focusing too heavily on any one generation risks disengaging others. A strong multigenerational communications strategy should be a holistic effort that creates structures where all employees feel their voices are meaningfully heard.”

The full survey report examines these and other data points in greater depth, including sector-specific findings in healthcare, retail/hospitality and manufacturing, and differences among large organizations and those with and without unionized employees.

Download Littler’s 2026 Labor Survey Report

About Littler

With more than 2,000 labor and employment attorneys in offices around the world, Littler provides workplace solutions that are local, everywhere. Our global team and proprietary technology foster a culture that celebrates original thinking, delivering groundbreaking innovation that prepares employers for what’s happening today, and what’s likely to happen tomorrow.