From the rapid adoption of AI to an increasingly complex regulatory landscape, three general counsel reflect on the significant challenges they anticipate facing in the year ahead.
For general counsel, 2026 is shaping up to be a defining year. Legal leaders are being asked to move faster, think more broadly, and strike a careful balance between innovation and governance – demands that would have been unthinkable just a few years ago.
With the new year fast approaching, three key themes are emerging as the most significant challenges facing general counsel in the months ahead.
Yet with the right strategies in place, these pressures can be turned into opportunities, allowing legal leaders not only to navigate change but to continue thriving in their roles.
AI moves from opportunity to obligation
Artificial intelligence has quickly shifted from a “nice to have” to a business imperative – and for general counsel, that shift comes with significant risk.
Keiko Minami, head of legal, APAC and ANZ, at Darktrace, shared how she believes AI will be the defining challenge for legal leaders in the year ahead, as they face growing pressure to get on board with the technology.
“I see AI as our biggest challenge. Our business landscape is quickly evolving with the use of AI. As legal leaders, it’s important to ensure use of AI is coined with AI governance,” Minami said.
To effectively address the challenges posed by AI and stay ahead of the curve, Minami argued that to stay ahead of AI, legal leaders must understand not just its promises but also its workings, strengths, limitations, and blind spots to use it responsibly.
“I recommend staying ahead of AI governance, which ironically AI can help you with,” Minami said.
“But in all seriousness, as AI becomes a bigger part of our daily lives, it’s critical that we understand both the strengths and limitations of AI so that we are more mindful and conscious about how we use AI.”
Regulation tightens – and the stakes rise
While AI dominates the headlines, regulatory change is creating just as much disruption behind the scenes, as general counsel navigate an increasingly complex and demanding landscape.
Nick Brown, general counsel at Airtree, identified new regulatory regimes as the most immediate and tangible challenge facing legal leaders in 2026.
“It’s definitely getting to grips with new regulatory regimes, and particularly the new merger clearance regime, which represents the biggest adjustment to how we do business in my five years at Airtree,” Brown said.
For general counsel, these changes demand more than just technical compliance.
Brown emphasised that addressing them requires a fundamental rethink and an understanding that solutions rely on collective intelligence rather than individual expertise.
“I think collaboration and information sharing are key. Colleagues and industry peers are all going through the same thing, so working closely to share knowledge and experience is vital,” Brown said.
Too many rules, not enough time
However, in a time of constant change and evolution within the regulatory landscape, Jessica Giampiccolo, managing director at JMLG Advisory, stressed that the true challenge is not any single regulation or risk, but the sheer volume of them.
“General counsel are contending with a rapidly expanding and evolving regulatory landscape, particularly across privacy, data governance, cyber security, ESG, workplace relations, and emerging technologies such as AI,” Giampiccolo said.
“The challenge is no longer understanding individual regimes, but integrating overlapping obligations across jurisdictions while maintaining operational agility.”
Alongside this sheer volume, Giampiccolo also noted that boards’ expectations for speed present another challenge for general counsel, who must support innovation while safeguarding the organisation’s legal and ethical foundations.
“Boards and executives are moving quickly to adopt AI and automation, often ahead of established governance frameworks. General counsel are expected to enable innovation while managing legal, ethical, contractual, and reputational risk,” Giampiccolo said.
“The defining challenge is balancing speed, commerciality, and innovation with robust legal and risk governance, while maintaining trust with boards, executives, regulators, and the broader workforce.”
To meet these challenges, Giampiccolo explained how general counsel must adopt a more deliberate, enterprise-wide strategy that positions the legal function as a business enabler rather than a back-office gatekeeper.
“To tackle these challenges effectively, general counsel should adopt a deliberate, enterprise-focused strategy that positions the legal function as a core enabler of the business while strengthening risk discipline,” Giampiccolo said.
“Crisis readiness is no longer optional.
“General counsel should ensure playbooks exist for regulatory investigations, data breaches, workplace incidents, and litigation, with clear roles, escalation thresholds, and communications protocols. Regular scenario testing improves organisational resilience.”
