Compliance leaders are navigating one of the most complex environments in recent memory. Regulatory expectations continue to evolve, stakeholder scrutiny is increasing, and organizations are trying to determine how technologies like AI fit into their risk and governance strategies.
In LRN’s recent webinar, The State of Compliance in 2026, Eric Morehead, Director of Advisory Services at LRN, sat down with Adam Balfour of Bridgestone and Miriam Block of Sanofi for a candid discussion on how compliance programs are evolving, where organizations are still struggling, and what leaders should be prioritizing moving forward.
The conversation explored everything from culture and psychological safety to AI adoption, program effectiveness, and the growing pressure to demonstrate measurable impact.
Key takeaways from the discussion:
- Compliance is becoming more strategic and business-integrated
- Organizations are shifting toward more targeted, risk-based approaches
- Leaders are focusing less on activity metrics and more on measurable impact
- AI adoption is accelerating, but many organizations are still modernizing foundational processes first
- Psychological safety, trust, and middle management are becoming critical drivers of culture and performance
Watch the full webinar recording
As regulatory expectations continue to evolve, AI reshapes risk landscapes, and organizations face growing scrutiny from stakeholders, compliance leaders are being asked to navigate an increasingly complex environment.
As regulatory expectations continue to evolve, AI reshapes risk landscapes, and organizations face growing scrutiny from stakeholders, compliance leaders are being asked to navigate an increasingly complex environment.
In LRN’s recent webinar, The State of Compliance in 2026, Eric Morehead, Vice President of Advisory Services at LRN, sat down with Adam Balfour, Vice President & General Counsel for Corporate Compliance and Data Privacy across the Americas and EMEA at Bridgestone, and Miriam Block, Head of Ethics & Integrity Learning, Knowledge Management and Industry Shaping for North America at Sanofi, for a candid discussion on how compliance is changing in practice.
The conversation explored everything from shifting priorities and AI adoption to culture, effectiveness, and the growing pressure to demonstrate impact.
Setting the Stage: The State of Compliance in 2026
Eric Morehead opened the discussion by acknowledging what many compliance leaders are feeling right now: the environment feels increasingly complicated. Organizations are balancing pressure from regulators, boards, employees, customers, and the public, all while trying to adapt to rapidly changing technologies and risk expectations.
For Miriam Block, one of the biggest shifts has been the evolution of compliance from a “department of no” into a more strategic business partner.
Rather than simply identifying problems or slowing things down, compliance teams are increasingly expected to help organizations navigate complexity while still enabling business objectives.
“We were looking for the problem, we were the blocker,” Miriam shared. “Now the function has evolved much more into a business partner model, trying to help people get to yes while staying within the regulatory boundaries.”
Adam Balfour echoed the idea that compliance leaders are operating in a particularly uncertain moment, both internally and externally. But he also emphasized the importance of perspective.
“There will always be uncertainty and challenges,” Adam noted during the conversation. “That’s not to dismiss the very real challenges organizations are facing today, but to recognize that compliance has always had to adapt to changing environments.”
The panel also discussed how the role of compliance is becoming more strategic. Regulators remain important stakeholders, but they are no longer the only audience organizations are trying to influence.
Compliance leaders today are increasingly focused on communicating value not just in terms of enforcement risk, but in terms of business impact, organizational culture, innovation, and trust.
As Adam explained, organizations are having to “polish their sales pitch” internally by helping leaders understand how ethics and compliance programs support broader business goals.
The discussion also touched on psychological safety and trust as critical themes shaping the future of compliance. Miriam emphasized that organizations cannot become truly high-performing if employees do not feel comfortable speaking up, challenging ideas, or raising concerns without fear of consequences.
The conversation made clear that compliance in 2026 is no longer simply about oversight. It is increasingly about enabling resilient, ethical organizations that can adapt and respond to change.
Shifting Priorities and Measuring What Matters
As the discussion turned toward operational realities, the panelists spoke candidly about how priorities are shifting and how compliance teams are making difficult decisions about where to focus.
One of the strongest themes that emerged was the move toward more targeted, risk-based approaches.
Rather than trying to monitor everything equally, organizations are becoming more intentional about identifying the areas that carry the highest risk or greatest potential impact.
Adam shared an example of this shift in practice, explaining that many teams are moving away from broad monitoring approaches and instead focusing on high-risk, high-volume areas where oversight can be more meaningful.
The conversation highlighted an important reality facing many compliance teams today: resources are limited, expectations continue to rise, and organizations cannot realistically do everything.
As a result, compliance leaders are being forced to make clearer prioritization decisions and, in some cases, let go of activities that may consume time but deliver limited value.
The panel also discussed how shifting expectations are changing the relationship between compliance and the business.
Miriam noted that compliance functions are increasingly expected to help enable growth and transformation rather than simply enforce rules. That shift requires stronger collaboration with the business, greater understanding of operational realities, and more thoughtful communication strategies.
At the same time, Adam emphasized that organizations should pay attention when employees disengage from compliance activities.
“If people are not engaging, we need to ask whether there’s truth or valid points to the resistance,” he explained.
The discussion pointed to a growing recognition that compliance programs need to become more human-centered and aligned with how employees actually work.
That includes rethinking overly long policies, ineffective training approaches, and compliance activities that create burden without improving understanding or behavior.
The panelists also discussed how AI is accelerating conversations around modernization.
While many organizations are experimenting with AI tools, the conversation emphasized that technology alone is not the solution.
Adam described AI as an incredibly useful tool when applied thoughtfully, but cautioned against using it simply for the sake of innovation.
Instead, organizations should first improve the quality and usability of the underlying policies, processes, and governance structures before layering AI on top.
From Activity to Impact: Measuring What Matters
One of the most important themes throughout the webinar was the shift from measuring activity to measuring impact.
For years, many compliance programs have relied heavily on operational metrics such as training completion rates, policy attestations, and communication distribution.
But according to the panelists, organizations are increasingly recognizing that activity alone does not necessarily reflect effectiveness.
Adam described this as both a measurement challenge and a mindset shift.
“What is the impact we are making rather than how much effort we put into it?” — Adam Balfour
He shared an analogy comparing compliance activity to running on a treadmill: organizations can spend enormous effort and energy moving constantly, while still failing to make meaningful progress.
“What is the impact we are making rather than how much effort we put into it?” Adam asked during the discussion.
That mindset shift is changing how some organizations approach learning, engagement, and culture.
Adam explained that his team intentionally reframed one of its core program pillars from “Training and Communication” to “Learning and Engagement.”
While the language shift may sound subtle, the underlying philosophy is significantly different.
“Training and communication focuses on what we delivered. Learning and engagement focuses on whether people actually learned something and whether they were engaged.” — Adam Balfour
“Training and communication focuses on what we delivered,” Adam explained. “Learning and engagement focuses on whether people actually learned something and whether they were engaged.”
The panel also explored how organizations are rethinking traditional compliance tools like Codes of Conduct.
Many organizations continue to rely on lengthy, static documents that employees rarely revisit after annual attestation.
The discussion challenged whether those approaches are truly effective in helping employees make better decisions.
Instead, the panelists encouraged organizations to think more creatively about how values, expectations, and guidance are communicated in ways that are clear, relevant, and easier for employees to use in practice.
The webinar audience also participated in live polling around how organizations are evolving their Code of Conduct experience and approaching AI within policy management.
The results reflected a broad range of maturity levels, with many organizations still actively exploring modernization strategies rather than fully implementing them.
Another major theme was the growing importance of leading indicators.
Rather than relying only on lagging indicators such as hotline reports or investigations, organizations are increasingly looking for earlier signals that may help identify culture challenges or ethical risks before they escalate.
That includes measuring whether leaders are regularly discussing ethics with their teams, whether employees feel psychologically safe speaking up, and whether compliance messaging is actually resonating.
Ultimately, the discussion reinforced that effective compliance programs in 2026 will likely be defined less by the volume of activity they generate and more by their ability to influence behavior, build trust, and support resilient organizational cultures.
AI and Analytics: Hype vs. Reality
AI was one of the most discussed topics throughout the webinar, though the conversation focused less on hype and more on practical application.
The panelists agreed that many organizations are still trying to determine where AI can genuinely improve compliance work versus where it simply introduces more complexity.
Adam shared that he uses AI regularly in both his professional and personal work, particularly for tasks involving data analysis, dashboards, and workflow efficiency.
“AI is a tool. The goal isn’t to use it everywhere. The goal is to use it thoughtfully.” — Adam Balfour
At the same time, he emphasized that organizations should avoid adopting AI simply because they feel pressure to modernize.
Instead, the discussion focused on the importance of strengthening the underlying structure first.
Adam described a current policies initiative at Bridgestone and explained that before layering AI into policy management, organizations should first rethink how policies are written, organized, and experienced by employees.
Rather than simply uploading outdated or overly complex policies into AI systems, the panel emphasized the need to make compliance programs more human-centered, practical, and aligned to business realities.
The audience polling reinforced that many organizations are still in the early stages of this journey.
While some attendees indicated they are already using AI to enhance policy management, many others shared that they are first focusing on modernizing and simplifying policies before expanding AI adoption.
The discussion made clear that AI has enormous potential, but organizations are still determining how to apply it thoughtfully and responsibly.
Culture, Middle Management, and Embedding Compliance into the Business
Another major theme throughout the webinar was the role of middle management.
The panelists discussed how middle managers often serve as the bridge between organizational values, policies, and day-to-day employee experience.
Even the strongest compliance frameworks can struggle if managers are not equipped to reinforce expectations, model ethical behavior, or create environments where employees feel comfortable raising concerns.
Miriam emphasized the growing importance of psychological safety and trust within organizations.
Employees are far more likely to speak up, challenge ideas, or raise concerns when they believe they can do so without fear of retaliation or negative consequences.
“Psychological safety and trust are foundational. Without them, organizations struggle to innovate, collaborate, and surface risk early.” — Miriam Block
The discussion highlighted that psychological safety is not simply a culture initiative. It directly impacts innovation, collaboration, risk identification, and organizational resilience.
The panel also acknowledged that middle managers themselves are often stretched thin.
Organizations are asking managers to balance operational demands, performance expectations, employee engagement, and culture responsibilities all at once.
As a result, compliance leaders are increasingly recognizing the need to make programs easier to understand, more relevant to daily work, and less burdensome.
Rather than simply pushing more policies or training content downward, the conversation focused on helping managers become stronger communicators, role models, and culture carriers.
Embedding Compliance into the Business
A recurring idea throughout the discussion was that compliance programs cannot operate effectively in isolation.
The panelists discussed the importance of embedding compliance into business decision-making rather than positioning it as a separate oversight function.
Miriam reflected on how the role of compliance has evolved significantly over time.
Rather than acting primarily as an enforcement or control function, compliance leaders are increasingly expected to partner with the business to help navigate difficult decisions while balancing regulatory obligations, ethics, culture, and business objectives.
Adam also encouraged organizations to pay close attention to employee engagement and resistance.
If employees consistently disengage from compliance activities, it may be a sign that programs need to evolve.
The discussion challenged organizations to rethink whether some traditional approaches are creating unnecessary complexity or burden.
Long Codes of Conduct, overlapping policies, repetitive training programs, and excessive documentation requirements may not always improve understanding or behavior.
Instead, the panelists encouraged organizations to simplify communication, focus on relevance, and make compliance more intuitive for employees.
Adam shared an example comparing corporate Codes of Conduct to the concise behavioral frameworks often used in schools.
The broader point was that employees are far more likely to remember and apply guidance that is clear, practical, and directly connected to how they work every day.
The panel also discussed how compliance teams can improve influence by developing a stronger understanding of business operations and communicating value in broader organizational terms.
Rather than focusing only on enforcement risk, compliance leaders are increasingly connecting ethics and integrity to areas such as innovation, employee trust, organizational culture, and long-term business resilience.
What’s Actually Moving the Needle?
As the discussion turned toward effectiveness, the panelists reflected on what is genuinely driving progress within compliance programs today.
One of the clearest themes was the importance of focusing on quality and impact over volume.
Organizations are beginning to recognize that more training, more policies, or more communications do not automatically create stronger ethical cultures.
Instead, the conversation emphasized the importance of relevance, engagement, and behavioral influence.
Adam discussed the importance of moving away from siloed approaches within compliance programs.
Too often, organizations treat investigations, training, communications, culture initiatives, and reporting mechanisms as separate pillars operating independently.
Instead, he encouraged organizations to think about compliance programs as interconnected ecosystems where insights from one area should inform and strengthen others.
The panel also highlighted the growing importance of leading indicators.
Historically, many organizations have relied heavily on lagging indicators such as hotline reports, investigations, or enforcement actions.
But increasingly, compliance leaders are trying to identify earlier signals that may point to emerging risks.
Adam described this using a practical analogy: organizations should stop focusing only on tracking “911 calls to the fire department” and instead pay closer attention to “smoke detectors.”
That means looking more closely at signals such as leadership communication, employee engagement, psychological safety, and manager behavior before larger problems emerge.
The discussion reinforced that high-performing programs are increasingly defined not by how much activity they generate, but by how effectively they influence behavior and support healthy organizational cultures.
Looking Ahead: Where Programs Must Evolve
As the webinar concluded, the panelists reflected on what will separate high-performing compliance programs in the years ahead.
Several themes emerged consistently throughout the conversation: adaptability, trust, simplification, stronger business integration, and more human-centered program design.
Miriam emphasized that psychological safety will continue to become more important as organizations face increasing complexity and faster decision-making environments.
Employees need to feel comfortable speaking up, sharing concerns, and challenging ideas without fear of negative consequences.
Without that foundation of trust, organizations risk stalled innovation, reduced transparency, and weaker decision-making.
Adam also highlighted the importance of breaking down silos within compliance programs and focusing more intentionally on how different program elements work together.
At the same time, organizations are likely to continue shifting toward earlier intervention and prevention.
Rather than focusing only on reacting to incidents after they occur, compliance leaders are increasingly exploring how data analytics, AI, and cultural indicators can help identify risks before they escalate.
The panelists also emphasized the importance of keeping programs grounded in real human behavior.
Whether through clearer policies, more accessible training, simplified communication, or more inclusive approaches for different employee needs, the future of compliance will likely depend on how effectively organizations can make ethics and integrity feel relevant, practical, and actionable.
Final Reflections
Throughout the discussion, one message remained consistent: compliance is no longer just about oversight.
The role is becoming increasingly strategic, integrated, and connected to broader organizational performance.
While uncertainty, evolving technology, and changing stakeholder expectations will continue to create challenges, the panelists also expressed optimism about the opportunity for compliance leaders to shape healthier, more resilient organizations.
“Compliance has always had to adapt to changing environments.” — Adam Balfour
The conversation reinforced that the programs most likely to succeed in the future will not necessarily be the ones doing the most activity, but the ones building trust, enabling better decisions, and creating cultures where employees feel empowered to speak up and act with integrity.
To hear the full discussion and additional insights from the panelists, watch the webinar recording here:
https://pages.lrn.com/2026-q2-webinar-the-state-of-compliance-in-2026-may-14
