Strategy And Planning

AI anxiety, increased benefit costs, inadequate cyber threat literacy among Indias top workplace challenges: Report

June 11, 2026
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< />Increased health and benefit costs, mindset barriers to AI adoption, a changing regulatory environment, and inadequate <a id=” captionrendered=”1″ data-src=”https://etimg.etb2bimg.com/photo/131646869.cms” height=”442″ href=”http://hr.economictimes.indiatimes.com/tag/cyber+threat+literacy” keywordseo=”cyber-threat-literacy” loading=”eager” source=”keywords” src=”https://hr.economictimes.indiatimes.com/images/default.jpg” type=”General” weightage=”20″ width=”590″></img>cyber threat literacy have emerged among the top ten risks for HR and risk professionals, finds a new report.</p> <p>Organisations and their people are operating under sustained uncertainty driven by rapid AI adoption pressures and a deepening talent crunch, finds the 2026 People Risks report by Marsh.</p> <p>The report, which has insights from more than 4,500 HR and risk professionals across 26 markets, including 311 participants from India (comprising 155 HR and 156 risk professionals), highlights that technology disruption, rising economic pressures and shifting talent dynamics are reshaping the enterprise risk landscape.</p> <p>Within India, these workforce-related vulnerabilities directly impact organisational resilience and business performance. Specifically, a mindset barrier to AI adoption is now among the top people risks for Indian organisations. Nearly half (49%) the organisations are concerned about investing in AI without appropriate employee training and inadequate cyber threat literacy ranks third, with 52% concerned about a lack of awareness regarding digital risks and mitigations. While increasing health and benefit costs remain a concern, organisations reported that focusing only on technology and capital investment without parallel investment in people will blunt the value of AI initiatives.</p> <p>“One of the most significant shifts we are seeing in this edition of the report is the emergence of AI-related workforce risks. Employees increasingly recognise AI as a powerful tool that can enhance productivity and career growth, but at the same time many also view it as a potential threat to job security. This tension is creating a mindset barrier to AI adoption,” Prawal Kalita, managing director and India leader, Mercer Marsh Benefits, told ET.</p> <p>According to the survey, organisations can reduce AI-related anxiety by recognising it as a genuine workforce and productivity challenge rather than a technology issue alone. Clear communication about how AI fits into the company’s long-term strategy is critical, along with involving employees in the design and rollout of AI initiatives to build trust and ownership, said Kalita. Companies should also invest in continuous reskilling and upskilling programmes to prepare employees for evolving roles, while also creating safe environments where people can experiment with and learn AI tools without fear. At the same time, strong data privacy and security measures are essential to ensure responsible and confident adoption of AI across the workforce.</p> <p>India’s people risk profile also features labour shortages, specialised technology skills gaps, and employee financial insecurity. Concerns regarding transparency, fairness, and inclusion, alongside a shifting regulatory environment, mental health deterioration, and poor management of investment risk in benefit programmes round out the top ten threats.</p> <p>Labour shortages are the top concern for HR professionals in India and fourth overall, reflecting sustained pressure to attract, retain and develop critical skills in a market marked by pronounced skills mismatches. Inadequate supervisory and leadership skills emerge as India’s most powerful risk multiplier: 62% of respondents say it would have a catastrophic or high impact on their organisation, triggering or worsening issues such as mental health deterioration, misconduct and unsafe working conditions. Yet only 46% report having highly effective leadership assessments in place. At the same time, lack of transparency, fairness and inclusion features within India’s top five risks, more prominently than in the global rankings, signalling how leaders behave and how fairly people are treated have become measurable business risks.</p> <p>Employee financial insecurity ranks eighth overall in India and is identified as a direct trigger for weakened retention and engagement, workplace misconduct and reduced cyber vigilance. Mental health deterioration also ranks among India’s top people risks, yet it is often overshadowed by more visible threats. More than half (54%) of HR and risk professionals in India are concerned about limited support for <a href=employee mental health and emotional well-being at work, and 41% say risks related to unsafe physical and/or psychological working conditions would have a catastrophic or high impact on their organisation.

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