UAE Firms Grapple with AI Resistance as Top Workforce Challenge

A new report by global risk advisory firm Marsh has revealed a significant shift in the risk landscape for UAE businesses: 'mindset barriers' to adopting Artificial Intelligence are now the leading workforce concern. This unexpected finding places employee resistance to AI ahead of previously dominant fears like evolving cyber threats and rising health costs, marking a critical turning point in how companies in the Emirates are viewing their biggest challenges. The 2026 People Risks report, based on a survey of HR and risk professionals in the UAE, highlights that internal human factors are now the primary hurdle to successful AI integration. This reordering of priorities underscores a growing complexity as the UAE pushes forward with its digital transformation agenda. What was once a top concern – increasing health costs – has now been eclipsed by the human element of AI adoption. Adel Alderi of Mercer Marsh Benefits emphasizes that these 'people risks' are no longer just HR department issues; they are directly tied to a company's ability to keep operating smoothly, ensure employee well-being, and remain flexible in a fast-changing world. A notable gap also surfaced, with only 40% of UAE firms reporting full collaboration between their HR and risk management teams, suggesting a disconnect in addressing these new challenges. Meanwhile, advanced AI-powered cyber threats, such as spear phishing and triple extortion ransomware, continue to evolve, posing a serious, though now secondary, risk. To address this, UAE firms are ramping up employee training to manage the ripple effects of AI adoption. Efforts include educating staff to spot fake AI-generated information (38%), tackle cybersecurity weaknesses related to AI (34%), critically review AI content (33%), and prevent data privacy breaches (32%). Experts are calling for closer alignment among HR, risk, finance, and top leadership to build an AI-ready workforce and implement robust AI governance frameworks. As sophisticated Agentic AI systems become more widespread, ensuring human judgment remains central and addressing concerns about job security will be vital for the UAE to maintain its competitive edge in the global AI race.