Artificial intelligence-related anxiety, skills gaps and cyber awareness challenges are emerging as major workplace risks for Indian companies as businesses accelerate AI adoption, according to Marsh's 2026 People Risks report released on Wednesday.

The report, based on responses from more than 4,500 HR and risk professionals across 26 markets, including 311 participants from India, found that technology-related concerns account for four of the top 10 people risks facing organisations in the country.

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Among the biggest concerns is workforce readiness for AI. Nearly half of Indian organisations surveyed said they are worried about investing in AI without providing adequate employee training, while inadequate cyber threat literacy ranked as the third-largest people risk.

The report found that 52% of HR and risk professionals are concerned about limited knowledge of AI risks and mitigations, 49% believe their organisations are investing in AI without sufficient employee training and upskilling, and 43% cited employee resistance driven by fears of job losses or change fatigue as a growing risk.

"People risks in India can no longer be treated as secondary concerns; they are directly shaping business outcomes. From the growing expectations gap between employers and employees, to the cyber vulnerabilities created by human behavior, to the productivity lost to AI anxiety and skills gaps, these challenges sit at the heart of how Indian organizations will perform and compete," said Sanjay Kedia, CEO and President of Marsh India.

"In 2026, resilience depends on how intentionally organizations invest in their workforce building digital capability, closing the expectations gap, and ensuring their people are equipped to navigate an increasingly complex environment," he added.

The study found that increasing health and benefit costs remain India's top people risk, with 65% of respondents expecting costs to rise over the next one to two years. While employers are playing a growing role in healthcare access, many respondents said benefit decisions are often made without adequately considering long-term cost implications or employee well-being.

Labour shortages ranked among the most significant concerns for HR professionals, reflecting persistent challenges in attracting and retaining skilled workers. The report also identified inadequate supervisory and leadership skills as a major risk multiplier, with 62% of respondents saying weak leadership could have a catastrophic or high impact on their organisations.

A shortage of specialised technology skills emerged as another key challenge, underscoring what the report described as a widening gap between corporate digital ambitions and workforce capability.

For risk professionals, cyber awareness has become a critical concern. The report found that cyber resilience increasingly depends on employee behaviour as much as technology, making workforce preparedness central to organisational security.

"AI is reshaping work at an unprecedented pace, but technology alone will not deliver value - people will. In India, employers risk losing the full potential of their AI investments if they overlook the human dimension. Building confidence, communicating clearly and investing in reskilling are not optional — they are the foundation of resilient AI adoption and sustainable business performance," said Prawal Kalita, Managing Director and India Leader, Mercer Marsh Benefits.

The report also highlighted growing concerns around employee financial insecurity, mental health and workplace safety. More than half of respondents said they were concerned about inadequate support for employee mental health and emotional well-being, while 41% said unsafe physical or psychological working conditions could have a severe impact on their organisations.

Marsh said companies that manage people risks more effectively are better positioned to improve productivity and execute strategic priorities. Globally, 53% of respondents reported higher workforce productivity and efficiency, while 51% said effective management of people risks helped accelerate strategic initiatives such as AI adoption and sustainability efforts.

The report also pointed to stronger collaboration between HR and risk teams as a competitive advantage. In India, 40% of respondents said their HR and risk functions fully collaborate, while 44% reported partial collaboration, suggesting organisations still have room to strengthen governance as workplace risks evolve.

Published on: Jun 10, 2026 2:22 PM IST