'Nearly half of Indian firms fear...': Marsh study flags emerging workplace risks

A recent report from Marsh highlights significant concerns among Indian companies regarding workplace risks as they increasingly adopt artificial intelligence. The study, which surveyed over 4,500 HR and risk professionals across 26 countries, including 311 from India, identifies technology-related issues as four of the top ten risks confronting organizations in the country. Workforce readiness for AI stands out as a primary anxiety. Nearly half of the Indian firms surveyed expressed concerns about investing in AI technologies without providing sufficient training for their employees. Additionally, a lack of cyber awareness was noted as the third most critical risk. The report indicates that 52% of HR professionals are worried about limited knowledge regarding AI's risks and mitigation strategies, while 49% believe their companies are proceeding with AI investments without adequate employee upskilling. Furthermore, 43% of respondents reported that employee resistance, fueled by fears of job loss or fatigue from change, is becoming an increasingly pressing issue. Sanjay Kedia, CEO and President of Marsh India, emphasized the importance of addressing these people risks. He stated, "These challenges are central to how Indian organizations will perform and compete. Resilience in 2026 will hinge on how intentionally businesses invest in workforce development, close the expectations gap, and equip employees to navigate a complex environment." The report also notes that rising health and benefit costs remain the top concern for Indian organizations, with 65% of respondents anticipating increases in the next couple of years. Although employers aim to enhance healthcare accessibility, many decisions regarding benefits are often made without fully considering their long-term costs or employees' well-being. Labor shortages continue to plague HR professionals, reflecting ongoing difficulties in attracting and retaining skilled talent. Additionally, the report flags inadequate supervisory and leadership skills as a significant risk factor, with 62% of respondents believing that poor leadership could severely impact their organizations. The widening gap between corporate digital ambitions and workforce capabilities is further underscored by the challenge of a shortage of specialized technology skills. As for cybersecurity, the report stresses that employee behavior is integral to cyber resilience, making workforce preparedness essential for organizational security. Prawal Kalita, Managing Director and India Leader of Mercer Marsh Benefits, highlighted the need for businesses to recognize the human aspect of AI adoption, stating, "Employers risk losing the full potential of their AI investments if they ignore the human dimension. Building confidence and investing in reskilling are crucial for sustainable business performance." Moreover, the report points out growing concerns about employee financial insecurity, mental health, and workplace safety. Over half of the respondents are worried about insufficient support for mental health, while 41% indicated that unsafe working conditions could significantly affect their organizations. Marsh concluded that companies effectively managing these people risks are better positioned to enhance productivity and achieve strategic goals, noting that global findings show improved workforce efficiency linked to the management of people risks. In India, collaboration between HR and risk management teams is crucial, with 40% of respondents indicating full collaboration and 44% reporting partial collaboration, suggesting there is still potential for improvement as workplace risks evolve.