Disputes Outlook 2026

AI is reshaping the disputes landscape - driving new claims, automating legal processes, and enabling faster enforcement. While AI boosts efficiency, it also brings risks, requiring careful verification of AI-generated content as unrepresented parties use these tools to assist with claim preparation.

Litigation volumes are rising across employment, prompting a shift towards mediation and commercial settlements. The current economic climate is influencing how debtors are pursued and supply chain disputes are increasing due to unclear contract terms, unrealistic KIPs and misaligned expectations.

A wave of new legislation is reshaping the disputes landscape. Key reforms - including the Digital Markets, Competition and Consumers Act, Renters’ Rights Act, Product Regulation and Metrology Act, and Employment Rights Bill - are all driving significant change.

Reputational risk is rising as social media fuels defamation and harassment claims, and greater transparency will increase public access to court documents. ESG factors are under the spotlight particularly for pension scheme governance and investment, while arbitration remains a preferred route for businesses seeking confidentiality and protection from public scrutiny.

Technology is transforming disputes management. AI-powered platforms are automating document review, streamlining administrative tasks, and triaging cases by risk. Legal professionals are emerging as workflow architects, shifting focus from manual tasks to more strategic, tech-enabled advisory roles.

Group litigation is on the rise, expanding across sectors like consumer and financial services. Claimant firms and funders are looking for regulatory decisions to support collective claims, while evolving legal frameworks and recent setbacks may encourage earlier settlements and shape future approaches.