GCs rising to the challenge of complexity and unpredictability

Data were collected through one-on-one interviews between Ari Kaplan Advisors and chief legal officers from large corporations internationally, and a separate quantitative survey of over 200 general counsel from a dozen countries. Tech and digital transformation leaders were also included for industry context.

According to part of the latest General Counsel Report: Entering the Unfazed Era, 60 per cent found risk and demand operations to be more complicated, and a third more unpredictable. This has escalated work volume in legal departments and risen costs for the majority of surveyed organisations.

Over 20 unique categories were identified as drivers of higher work volume, including dealing with new regulations and laws, data breaches, tariffs, and contract management. Ninety-seven per cent reported increases in work volume in one or more of the aforementioned categories.

In addition, 30 per cent experienced more regulatory activity this year, 57 per cent reported increased cost of disputes and investigation, and new areas of legal work emerged for approximately a third of respondents.

However, leaders are aiming to balance increasing demands with innovation and, according to the report, becoming increasingly resourceful and resilient in the face of this environment. A reactive approach has been replaced by a proactive one in the face of external forces that have become almost commonplace over the last few years.

In addition, leader confidence and sense of being prepared is high, with 77 claiming to exercise proactivity in information governance. Thirty-nine per cent of respondents cited artificial intelligence as part of a strategy to deal with increased risk and demand, representing a 10 per cent increase from last year.

VIEW ALL

David Horrigan, discovery counsel and legal education director at Relativity, explained that “robots and regulations have topped data privacy in the minds of general counsel – at least for the moment”.

Ari Kaplan said: “An interesting aspect of this year’s study was the nuance in how general counsel view AI in the context of risk.”

“This finding provides insight into how pervasive AI has become across every aspect of the legal department and the way legal leaders approach it: they’re scrutinising it but also view it as an opportunity for improving their work.”

FTI Technology global chief executive Sophie Ross, said: “As general counsel become more sophisticated in using technology to enable efficiencies, they remain focused on the value of trusted relationships and outside expertise to help them navigate unpredictability and new challenges.”

With significant shifts becoming more expected, a clear evolution of the profession is emerging in response to a dynamic global environment.

Part 2 of the report, Testing the Limits of Technology, is due to be released next month.