In the ever-evolving landscape of the legal industry, the role of in-house general counsel (GC) and chief legal officers (CLOs) has never been more pivotal. In this article, Amie Davidson, Head of Peerpoint in the U.S., and Regina Kennedy, Senior Client Development Manager in the U.S., explore some of the market developments they’re hearing about and their implications on legal departments and business teams as we head towards 2025.
Sustainability – leading with purpose and integrity
Sustainability has been on the agenda for a while and is likely to remain a dominant theme in the coming year. Embracing the expectations of investors, stakeholders, employees, and customers will be an ongoing challenge for GCs and management teams within organizations. In addition, the intricate web of state, federal, and global regulatory expectations and mandates will continue to add a layer of complexity for GCs of organizations that have a significant U.S. presence.
Industries such as energy, resources, and transport will continue to be at the heart of government and regulatory focus due to their important role in combating climate change and advancing sustainability efforts. Those with complex supply chains must stay attuned to how sustainability influences resources, transportation, sanctions compliance, and export control regimes, and this broadens the horizon to include sectors such as manufacturing, construction, agriculture, and food retail – all of which play a vital role in our collective journey towards a more sustainable future.
While the ripple effects of sustainability touch every corner of the business world, there are exciting opportunities for organizations to lead with purpose and integrity.
Cyber attacks and data privacy
As cyber attacks become more sophisticated and frequent, the importance of data privacy and confidentiality has never been more critical. Many GCs are now thoughtfully considering incident response plans that not only address the legal implications of a potential breach but also help ensure the well-being of their organizations. Understanding the liabilities, regulatory frameworks, and processes for reporting to the authorities is essential, but equally important is preparing teams to navigate any industry or government-specific regulations or sanctions that may arise.
GCs are increasingly finding themselves at the heart of crisis communication and incident response teams when a cyber incident does occur. And while all types of organizations are vulnerable to cyber threats, sectors such as healthcare, finance, manufacturing, retail, and government or public services are particularly vigilant, recognizing the unique risks they face as they work to protect their valuable data and the trust of those they serve.
Building trust in generative AI
Balancing risk and opportunity will be crucial as organizations continue to explore the exciting benefits of artificial intelligence (AI). When it comes to making decisions about AI, it's important to have legal and compliance teams involved in discussions as they can help navigate the opportunities AI offers, while also managing any potential risks.
Many agree that AI will significantly boost productivity, allowing GCs to focus on more complex and value-adding tasks. However, the current priority is to build trust in the new technology within their organizations and this involves engaging with AI, understanding its impact, and developing low-risk business cases for its use.
In many organizations, the legal team is in fact leading the way in utilizing AI. Where this is the case, by sharing their insights and experiences, GCs and their teams can help other departments understand how AI can be beneficial, thereby adding even more value to the organization.
While it's clear that AI will have an impact on in-house legal teams, there's a consensus that it won't immediately reduce team sizes. Instead, it will transform how legal teams deliver their services and the skills that lawyers will need, especially in the long term.
Hiring for skills needed in the future
For several years now, GCs and CLOs have had the challenge of achieving more with fewer resources. They are creatively building their teams to meet the diverse expectations of leadership, employees, and the evolving impact of AI. Instead of just focusing on immediate requirements, forward-thinking GCs are planning ahead and hiring for the skills their businesses will need in the next three to five years.
Skills such as AI expertise are highly sought after, but just as important are qualities such as a curious mindset and an entrepreneurial spirit. For those aiming to retain their valuable legal talent, it’s essential to provide existing team members with opportunities to grow and learn new skills. This can be achieved through involvement in cross-functional projects or secondments, which not only enhance their capabilities but also keep them engaged and motivated.
Leveraging flexible legal talent
As we approach 2025, adaptability remains key to the success of legal departments. Many GCs and CLOs are expanding their legal teams' capacity by leveraging flexible legal talent. This strategy allows GCs to scale their teams according to business needs and budget constraints, freeing up time for development opportunities and fostering stronger partnerships within the business. This approach not only makes the roles more enjoyable for the individuals involved but also supports organizational growth while navigating the ever-evolving legal landscape.