More Than a Third of Organizations Missed a Regulatory Requirement in the Last 12 Months, Reveals RegASK’s Latest Report

RegASK’s 2026 State of Regulatory Affairs and Compliance Report reveals growing AI maturity, but cautions that leadership-operations misalignment could hinder progress.

Regulatory pressure is rising at a pace many companies can’t keep up with. According to RegASK’s newly released 2026 State of Regulatory Affairs and Compliance Report, 83% of regulatory professionals reported an increase in regulatory volume, a 34% surge from last year. This upswing is overwhelming legacy systems, with serious consequences. More than one-third (37%) of regulatory teams surveyed said their organization missed a regulatory requirement in the past year, and among those, 50% of senior leaders estimated the financial loss to be between US$500,000 and US$1 million, and 14% reported losses exceeding US$1 million.

Based on insights from 162 regulatory professionals and senior leaders worldwide across the life sciences and consumer product industries, the report underscores a clear industry mandate: regulatory agility is no longer optional. It has become a key driver of business growth and resilience, and teams recognize that AI will play a defining role in achieving it.

The report finds that while the usage and demand for AI has doubled in the past 12 months, the perception gap between leadership expectations and frontline realities remains a key barrier to operationalizing it effectively. Today, most senior leaders believe their teams can respond to new regulations within a week, but the reality on the ground is a demanding one- to four-week scramble that often relies on manual tracking, reactive fixes, and limited resources.

When leadership underestimates the time and resources required for compliance, it can lead teams to focus on immediate fixes rather than long-term preparedness. This misalignment often limits the investment operational teams get for advanced tools, leading to missed deadlines, team burnout, and a perpetual cycle of catching up. It also explains why 56% of operational teams surveyed are turning to general-purpose LLMs to solve immediate compliance challenges, rather than waiting for enterprise rollouts.

“AI has evolved from being an emerging opportunity to a strategic capability,” said Caroline Shleifer, Founder & CEO of RegASK. “But the real challenge isn't deciding to adopt AI. It's making sure leadership's envisioned plans and timeline matches the reality of what operational teams actually need. That alignment is what enables effective AI adoption and true regulatory agility.”

When it comes to advanced applications like agentic AI, adoption remains nascent. Only 7% of senior leaders and 16% of operational teams say they are actively using it today, while 39% have never heard of the technology. This disparity shows that AI maturity is still evolving across regulatory teams, with early adopters shaping standards others will soon have to follow.

Key Findings from the 2026 State of Regulatory Affairs and Compliance Report:

Market Leaders Move Fast: Only 7% of organizations can identify a new regulation and execute a response plan within 48 hours, giving them first-mover advantage in compliance and market access. Most teams operate at a much slower rate, with 16% taking more than a month to respond.

Compliance Blind Spots Carry a High Price: The cost of missing a regulatory requirement extends beyond financial losses. Among the senior leaders who missed a regulatory requirement, 46% faced delayed or canceled product launches, 39% experienced clinical trial disruptions, 36% had product recalls, and 25% suffered brand reputation damage.

Most Regulatory Teams Remain Analog: Despite growing regulatory volume and enthusiasm for AI, most compliance teams still rely on manual workflows. 65% of respondents depend on newsletter alerts from regulators or aggregators, and 48% depend on a dedicated team to manually track updates and translate implications across functions.

AI Adoption Builds Momentum: The shift from interest to implementation is improving. Today, 27% of organizations use vertical AI platforms to track regulatory changes - a 42% increase from last year’s 19%. This steady rise shows that teams are moving beyond pilots and beginning to integrate AI into daily compliance workflows.

The report outlines a clear trajectory for the function’s evolution. Over the next three years, Regulatory Affairs will transition from a reactive cost center into a strategic command function, powered by AI-driven insights, cross-functional integration, and human oversight. As AI takes on more execution tasks, human expertise will move upstream to focus on judgment and strategy. Teams must develop new skills such as AI literacy, oversight and quality assurance of AI outputs, and ethical reasoning to stay relevant.

“The data is clear. The focus has shifted from wanting AI to operationalizing it, and the future belongs to the augmented team where humans lead and AI enables,” said Amenallah Reghimi, RegASK’s Chief Product and Technology Officer. “The goal is not to replace experts, but to free them from low-value work so they can focus on what truly moves the business forward. This is Augmented Intelligence in action, and it's defining the new era of regulatory excellence.”

Download the 2026 State of Regulatory Affairs and Compliance Report here.

About RegASK

RegASK is an AI-driven platform enabling end-to-end regulatory intelligence and workflow orchestration. It automates regulatory intelligence with curated content, actionable insights, and workflow automation, while connecting a global community of over 1,700 subject matter experts for streamlined compliance execution. By combining Agentic AI efficiency with deep regulatory expertise, RegASK empowers organizations to proactively manage compliance and navigate complex regulatory landscapes with confidence. To learn more about RegASK visit regask.com.

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