Disputes Outlook 2026: Key themes for the year ahead

The disputes landscape is changing rapidly. Looking ahead to 2026, we anticipate that sweeping regulatory reforms, increased litigation, and advances in artificial intelligence will bring both challenges and opportunities for businesses across all sectors.

Our second annual Disputes Outlook will be published in early January 2026, covering nine specialist areas: Commercial disputes, Competition disputes, Employment, Financial Services, Insolvency, Legal Project Management, Pensions, Property disputes, and Regulatory.  

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For now, drawing on expertise across all nine areas, here are the key themes that we expect to shape the disputes landscape in 2026.

1. AI disruption and opportunity

• Transformation of disputes: AI is fundamentally changing how disputes are conducted, is creating new types of litigation, and is transforming existing processes.

• Access and risk: Unrepresented parties are using AI tools to assist with claim preparation, while lawyers must now verify AI-generated content due to risks of false citations or fabricated evidence.

• Enforcement tools: AI-powered reverse image search is enabling copyright owners to detect and enforce against unauthorised use more systematically.

• Efficiency gains: AI is automating document review and multi-step legal processes, reducing costs and enabling faster, more strategic decision-making.

2. Increase in litigation volumes and system strain

• Rising claims: A notable increase in claim volumes and court delays is prompting a shift towards mediation and commercial settlement.

• Employment disputes: Tribunal claims are rising, driven by Government reforms and greater public awareness of employee rights, with the system under pressure to recruit more judges.

• Supply chain: Disputes are increasing due to unclear contract terms, unrealistic KPIs and misaligned expectations.

• Insolvency procedures: These are being used more frequently to exert pressure on debtors.

3. Regulatory reform and legislative change

• Legislative wave: New laws are reshaping the disputes landscape across many sectors.

• Key Acts: The Digital Markets, Competition and Consumers Act 2024, Renters’ Rights Act, and Product Regulation and Metrology Act 2025 are all introducing significant changes.

• Employment rights: The Employment Rights Bill is expected to drive a steady increase in tribunal claims.

• Financial Services: The outcome of the FCA’s consultation on the proposed Motor Finance redress scheme is likely to have a significant impact.

4. Reputational risk and public scrutiny

• Social media impact: Defamation and harassment claims are rising, particularly from social media activity, with businesses facing criticism about their practices and products from a range of stakeholders.

• Transparency: Changes to court policy will increase public access to court documents.

• ESG importance: Environmental, social, and governance (ESG) factors are increasingly important, especially for pension scheme governance and investment.

• Arbitration appeal: UK arbitration remains attractive for businesses seeking confidentiality and protection from public scrutiny.

5. Use of technology in disputes management

• AI workflows: Document review platforms are adopting agentic AI to conduct complex multi-step reasoning, improving efficiency and speed.

• Administrative streamlining: AI is automating administrative litigation tasks and triaging disputes by urgency, complexity, and risk profile.

• Evolving roles: Legal professionals are emerging as workflow architects, designing tech-enabled processes that shift their focus from manual tasks to strategic advisory work.

6. Collective action

• Growth in group litigation: There is a rise in group litigation, with claimant firms and funders seeking new opportunities to bring representative claims, though recent adverse outcomes may encourage earlier settlements.

• Sector expansion: Group litigation is becoming more common across sectors, from consumer class actions like Dieselgate, to financial services claims and the development of Scotland's group proceedings regime.

• Regulatory decisions: Funders and claimants are looking for regulatory decisions to base collective claims on, with enhanced powers for the CMA potentially opening new avenues.

• Legal developments: Watch for Court of Appeal decisions on ‘omnibus’ claim forms, evolving approaches to Group Litigation Orders, and the development of ‘same interest’ representative actions.

Register your interest in receiving our Disputes Outlook 2026 now by following this link – or by contacting one of our specialist experts below.  

‍This publication is intended for general guidance and represents our understanding of the relevant law and practice as at December 2025. Specific advice should be sought for specific cases. For more information see our terms & conditions.

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