Key points:
- Chief legal officers (CLOs) are managing expanding responsibilities beyond legal oversight.
- Litigation, regulatory enforcement, and internal investigations are on the rise.
- Many CLOs are turning to technology to enhance efficiency amid budget constraints.
Chief legal officers are grappling with an expanding set of responsibilities as corporate legal risks intensify. The latest 26th Annual Chief Legal Officers Survey, conducted by the Association of Corporate Counsel and FTI Consulting, underscores how CLOs are navigating heightened regulatory scrutiny, increasing litigation, and broader organizational leadership roles.
According to the survey, 70% of CLOs now oversee at least two additional functions, such as compliance, risk management, privacy, or ethics. As their purview broadens, 44% of CLOs say their most significant impact is advising the CEO and shaping business strategy.
Litigation pressures are mounting, with 44% of CLOs reporting an increase in disputes over the past year, while 42% have seen a rise in internal investigations. Additionally, 24% of respondents noted a surge in external regulatory probes. For larger companies, antitrust enforcement is a growing concern, with 41% identifying it as a priority, while 26% are focused on emerging AI regulations.
“CLOs are key strategic business partners, their responsibilities beyond legal roles are growing, and they are assuming greater leadership across organizations,” said Veta T. Richardson, ACC’s CEO.
As workloads increase, legal departments are also facing staffing shortages. Thirty percent of respondents plan to expand their legal teams this year, with that figure rising to 50% among the largest companies surveyed. However, corporate budget constraints are prompting many CLOs to look toward technology for efficiency gains. The survey indicates that 44% of CLOs intend to invest in legal technology, prioritizing contract life-cycle management, document management, and workflow automation tools.
AI adoption remains a key consideration, though regulatory uncertainty tempers enthusiasm. While CLOs acknowledge AI’s potential to streamline operations, they are proceeding cautiously to ensure compliance with evolving legal frameworks.
“Over the past two years, legal departments have become much more sophisticated and targeted in their approach to technology,” said Sophie Ross, global CEO of FTI Technology. “By understanding the importance of and investing in a combination of technology, expertise, and process improvement, CLOs are seizing the opportunity to make an impact in their organizations during a time of immense change and rising risks.”
