Legal Risks and Priorities for General Counsel in 2026

 

Bloomberg Law’s GC Guide to Navigating 2026 delivers an analysis of predictions and key legal trends impacting in-house counsel in the year ahead. This four-part series offers practical guidance to help legal teams manage risk and compliance.

Start with the Privacy & Data Security report for insights on AI governance, state compliance, and more.

Managing privacy obligations across states

The growing integration of AI into business workflows presents a significant challenge for legal leaders. With the absence of comprehensive federal privacy legislation, a complex patchwork of state rules is emerging, often influenced by existing international frameworks. For GCs, this creates a fragmented compliance landscape that demands careful navigation.

Just as the California Consumer Privacy Act (CCPA) set a new standard for consumer privacy in the United States, states are now pioneering AI-specific regulations, including the Colorado Artificial Intelligence Act (CAIA), which takes effect on Feb. 1, 2026.

This landmark law creates obligations for businesses that use AI in ways that materially impact consumers’ lives, particularly in areas of housing, healthcare, employment, and financial services.

Tackling these challenges directly is essential for protecting your organization and enabling sustainable growth.

Download our GC Guide to Privacy for more insights.

Companies are rethinking where they incorporate

Although Delaware has been known as the “corporate capital of the world,” thanks to its Court of Chancery and extensive case law, states like Texas and Nevada are looking to attract new business to their states by amending their corporate codes and establishing business courts.

While the majority of Russell 3000 companies are still incorporated in Delaware, number of companies proposing to reincorporate outside of Delaware has increased over the last few years and will likely continue increase as states build out more robust alternatives.

Download our GC Guide to Corporate Governance to uncover additional insights.

Tariffs and AI rules reshape deal strategies

Contracts and transactions are undergoing a major shift, creating new challenges and opportunities. Tariffs have sparked widespread uncertainty, forcing companies to proactively assess suppliers, renegotiate contracts, and even adjust their operations to cope with the resulting supply chain disruptions.

Regulations around AI are becoming stricter at both global and state levels. The EU AI Act imposes complex compliance requirements, with companies facing mounting compliance costs and operational challenges.

Meanwhile, states like California and Colorado have introduced their own AI laws, focusing on transparency and ethical practices. In contrast, at the federal level, the SEC, led by Chair Paul Atkins, is embracing deregulation to encourage innovation, particularly in cryptocurrency.

Download our GC Guide to Transactions & Contracts for additional information.

Employers brace for increased L&E litigation

DEI programs face intensified scrutiny from federal and state agencies, with the Equal Employment Opportunity Commission (EEOC) poised to escalate enforcement actions and litigation targeting discriminatory practices.

Political speech will continue to be a hot issue in 2026, with Democratic-controlled states likely to expand speech protections for workers.

Employers must prepare for a more litigious environment, especially as courts and lawmakers redefine the boundaries of employee rights and company policies.

Download our GC Guide to Labor and Employment to learn more.