Posted by Ian McConnel, chief legal officer of CSC
McConnel: Legal function now about value creation as well as risk mitigation
A year ago, legal departments were cautiously curious about generative artificial intelligence (AI). Today, they’re eagerly embedding it into their operations.
In fact, 97% of general counsel (GCs) have already adopted generative AI tools to support the work of their legal teams, and nearly half say it’s making a significant difference.
From automating due diligence and environmental, social, and governance (ESG) reporting to helping draft contracts and interrogate complex regulations, AI is now a valuable addition to the legal toolkit.
This coincides with a critical point for legal functions, as revealed in CSC’s General Counsel Barometer 2025, based on a global survey of 350 senior legal leaders.
Amid soaring regulatory complexity, surging compliance costs, and ongoing market uncertainty, today’s GC role has become even more vital to business success.
This wave of generative AI tools promising speed, efficiency, and resilience could dramatically reduce this growing burden on in-house teams. With AI applications quickly evolving, the challenge is how to balance innovation with a governance framework that ensures businesses are using these tools safely.
From risk managers to strategic growth partners
Our report this year revealed that 98% of GCs expect their organisations to grow in 2025, with two-thirds eyeing international expansion.
This is set to put GCs under even more pressure to perform as they steer their companies through cross-border expansion and intensifying regulatory oversight. Managing new entities across multiple jurisdictions generates more compliance requirements, more filings, more work, and ultimately more risk.
Understanding local legal and regulatory systems and keeping up with shifting legislation are the top hurdles to growth cited in our study.
Nearly three-quarters (72%) of GCs anticipate legal and regulatory costs will increase over the next three years and only 27% say they feel ‘very prepared’ for the next wave of regulatory change, including beneficial ownership disclosure rules.
Against this backdrop, AI is becoming a key enabler for success.
AI: The legal team’s newest ally
The most cited benefit of AI is efficiency. Two-thirds of GCs say generative AI is helping them manage more work, more quickly.
But that’s just one layer – 41% say it’s improving fraud detection and 40% say it’s speeding up processing. Others point to more accurate data, improved risk management, and stronger compliance tracking.
We’re seeing AI embedded into everything from M&A support to global employee agreement reviews and ESG data collection. Tasks that used to take days are now completed in minutes.
But GCs aren’t adopting such tech without careful evaluation. They’re building governance frameworks to guide its use.
Some 72% say they have strong internal policies in place and 85% cite fraud as a top concern when using AI tools. Data privacy, quality assurance and risks around third-party vendors also rank high on the list.
GCs see AI not as a silver bullet, but as a powerful tool, one that must be deployed carefully, with clear oversight and high-quality data inputs.
Why outsourcing is the missing piece
AI is helping legal teams do more with less, but it doesn’t solve every problem. Regulatory complexity is only set to increase, and in-house resource constraints persist. Even with new tools and technologies, in-house teams remain under pressure.
That’s why 58% of GCs say they’ve increased outsourcing to specialist providers in the past year, a trend driven by the need for scale, expertise and flexibility. Those already outsourcing are more confident in their ability to stay compliant and are less likely to expect cost increases in the years ahead.
What GCs want isn’t just outside counsel, they want partners a one-stop shop that can help establish new entities, ensure compliance and that regulatory and other filings are up-to-date, and offer a single point of contact across time zones.
The right provider brings more than capacity. They bring consistency, insight, and peace of mind.
The GC of the future
The legal function is undergoing a quiet revolution. It’s no longer about risk mitigation alone, but about value creation.
GCs are helping businesses enter new markets, drive M&A, and embed resilience through data-led decision making. Those who embrace cutting-edge technology will enhance efficiency and expand the influence of the GC’s office.
But success won’t come from AI adoption alone. It will require clear governance, the right mix of in-house and outsourced talent, and an initiative focused approach to regulatory change. The GCs who get this right will become critical architects of business growth.
In an era of increasing compliance complexity, GCs who embrace AI intelligently and partner strategically won’t just survive, they’ll lead.
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