Summize Report: AI & Compliance Driving Rapid Evolution in In-House Legal Roles

Global News

30
Jan
2025

Editor

Summize, a leader in contract lifecycle management (CLM) solutions, today unveiled the findings of its Legal Disruptors 2025 Report, with 77% of respondents saying the legal function is evolving. Of the survey of more than 250 U.S. legal professionals, 55% cited compliance and regulatory issues as key drivers of the transformation. Top 2025 priorities include artificial intelligence (AI) adoption and usage, streamlining contract management, and building the legal brand.  

Chief legal officers and their teams are navigating profound changes as market complexities, economic volatility, and the rise of AI and automation reshape business landscapes. In-house legal professionals are no longer confined to traditional legal tasks. They are now asked to support even more areas of their businesses by becoming a more strategic function.  

2025 Challenges 

Legal teams must address traditional challenges while rapidly adapting to new ones, a daunting task but one that offers significant future opportunities. The top reasons for the evolution of the legal role include an increased focus on data privacy and security (49%), transformation of processes and automation with tech (44%), risk management (43%), and more involvement with business strategy (35%). 

When asked about the top challenges for 2025, respondents noted: 

• Adopting new technologies such as AI (30%) and positioning legal as a more strategic function (28%), respectively.  
• Among senior leaders, AI was the most concerning challenge at 40%.   

Rebranding legal’s perception is critical for success as roles evolve. When asked which member of the C-Suite they considered to be their strongest partner, 40% of respondents said it was the CEO. One-quarter referenced the chief financial officer (26%) and the chief operating officer (25%), while executives who drive sales and technology decisions, such as the chief revenue officer or chief marketing officer, ranked below 10%.  

The Rise of AI  

AI is gaining ground within the legal function, but its usage varies based on need. The survey found that nearly all (89%) respondents said that AI tools are in use at their company, while 42% cited multiple tools in regular use. Yet, over half (53%) said their company does not have an AI mandate in place, potentially increasing the use of unauthorized solutions deployed. Primary barriers to AI adoption in legal departments include:  

• Privacy and security concerns (45%);  
• Limited understanding or training (37%); 
• Lack of clear use cases of value (31%); and   
• Implementation costs (29%).  

While more legal teams are using AI, adoption and strategies remain uneven. There is still more opportunity to understand the benefits and safety of implementing AI as a strategic asset to elevate the legal team’s impact.  

Contract Management Transformation 

As AI continues to evolve legal operations, contract lifecycle management (CLM) is another area that can help transform how legal teams operate. Resource-intensive and time-consuming manual contract management methods continue to challenge legal professionals seeking efficiency.  

• One-third of respondents (31%) echoed these pain points, citing that not enough automation and manual processes are taking up too much of their time.  
• Lack of CLM adoption and use company-wide (32%), followed by an intake process that is too hard to manage (31%), round out these operational headaches.   
• The need for efficiency is also paramount, as legal professionals prioritize improved operational efficiency (43%) ahead of cost savings (37%) and enhanced data security and privacy (38%) when making purchasing decisions.    

"Our latest report highlights how in-house legal teams are stepping into the spotlight as critical decision-makers, poised to guide the businesses they support through an evolving role with innovation and foresight,” said Tom Dunlop, CEO of Summize. “Over the past few years, legal teams have experienced significant shifts as they are continually asked to take on more responsibilities and growth. These changes, while challenging, present immense opportunities for legal to redefine its role and become as a strategic driver of business growth.” 

About the Survey  

The research was conducted by Censuswide, among a sample of 250 in-house legal professionals in companies with 50 or more employees in the U.S.