As we reach the midpoint of 2025, Axiom has been actively engaged across the global legal community, participating in legal conferences and events from New York to Sydney, Singapore to London. Our team has gathered invaluable insights from legal leaders worldwide, and the patterns emerging paint a clear picture of an industry in transition.

The Universal Challenge: Doing More with Less

Regardless of geography, one theme resonates across every conversation: budget pressure is universal. Legal departments are facing unprecedented demands to demonstrate value while operating with constrained resources. In Australia, this manifests as explicit "doing more with less" mandates, while in Europe, CFOs are increasingly scrutinizing tech investments, demanding concrete evidence of savings and ROI.

This financial pressure is reshaping how legal teams approach their work. The traditional model of throwing more bodies at problems is no longer viable. Instead, legal leaders are being forced to think strategically about resource allocation, technology adoption, and process optimization.

The AI Paradox: High Interest, Cautious Implementation

Perhaps no topic generates more discussion than artificial intelligence, yet the gap between interest and action remains significant. Across APAC, legal leaders are in what one might call "learning mode" rather than "action mode." There's genuine curiosity about AI's potential, but most organizations are proceeding with measured caution.

This paradox is validated by data from Axiom's recent research report, "The AI Legal Divide: How Global In-House Teams Are Racing to Avoid Being Left Behind." The study of over 600 senior legal leaders reveals that while 89% of in-house teams increased AI usage this year and 76% are significantly boosting AI budgets, only 21% have achieved true "AI maturity." Most concerning is the dangerous disconnect between risk awareness and risk management—69% of teams recognize moderate-to-high AI risk to their organizations, yet fewer than 40% have implemented basic safeguards like usage policies or staff training.

This hesitation isn't necessarily negative; it reflects a mature understanding that successful AI implementation requires careful planning, proper training, and cultural change management. As CJ Saretto, Axiom's CTO, shared during our Legal Leaders Breakfast in June, even organizations with significant AI expertise benefit from taking a methodical approach to AI adoption. The research supports this cautious stance, showing that legal departments are often "flying blind" in AI procurement, with 45% handling identification, vetting, and payment entirely in-house despite lacking the required technical expertise.

The data also reveals another troubling trend: 66% of legal departments are using AI chatbots not specifically designed for legal work, while only 7-17% use purpose-built legal AI tools. This over-reliance on general-purpose tools like ChatGPT for sensitive legal work undermines governance, security, and privacy, exactly the concerns legal leaders are grappling with at conferences worldwide.

For legal leaders seeking to navigate this complex landscape, we encourage reading the full research report, which provides comprehensive benchmarking data and strategic insights for accelerating AI maturity while managing risk.

The Evolving Legal Workforce

The demographic composition of legal teams is shifting dramatically. In Europe, we're seeing a growing focus on junior-level lawyers with tech-enabled capabilities, while across APAC, the concept of flexible talent is gaining serious traction. Alternative Legal Service Providers (ALSPs) are increasingly viewed as strategic partners rather than cost-cutting measures.

This evolution reflects legal departments' recognition that the traditional hiring model—exclusively relying on full-time, senior-level attorneys—isn't sustainable in today's environment. Smart legal leaders are building hybrid teams that combine permanent staff with flexible resources, creating more agile and cost-effective operations.

💡 Explore flexible resourcing options.

Regional Nuances in Global Trends

While many challenges are universal, regional variations provide important context. In Asia, talent acquisition and retention present unique challenges, particularly in competitive markets like Singapore and Hong Kong. The regulatory complexity of cross-border operations adds another layer of difficulty for multinational organizations.

European legal departments are grappling with increased bureaucracy and approval processes, making decision-making more complex. Meanwhile, Australian legal teams are experiencing "innovation fatigue"—high interest in legal technology coupled with limited bandwidth for implementation.

The Operations Imperative

Legal operations continues to gain prominence, though maturity levels vary widely. Growing practice areas consistently include data privacy, regulatory compliance, and operational excellence. This shift reflects legal departments' evolution from reactive cost centers to proactive business enablers.

The emphasis on operations represents a fundamental change in how legal work is conceptualized and delivered. Legal leaders are increasingly thinking like business executives, focusing on process improvement, technology integration, and strategic value creation. This transformation is no longer optional; it's essential for competitive survival.

The Strategic Integration Reality

Gone are the days when in-house legal teams could operate in isolation. Today's legal departments are strategic business partners, deeply involved in cross-functional projects and expected to deliver measurable value while managing tighter budgets and faster timelines. The momentum is undeniable: recent research shows 87% of general counsel increased their legal operations budgets by an average of 11% in 2025, with 40% of organizations already having established legal operations teams and another 40% actively implementing them.

What distinguishes effective legal operations from simple administrative support is its integration with strategic business objectives. Legal operations managers don't just manage processes; they enable legal departments to become first-line participants in business strategy and risk management. They create systematic approaches to vendor management, project management, and resource allocation that traditional legal service models cannot match.

💡 Let Axiom help you build your strategic legal operations team.

From Reactive to Predictive

Modern legal departments generate vast amounts of data, but few leverage this information strategically. Legal operations teams bridge this gap by implementing data analytics capabilities that transform legal work from reactive to predictive. By treating ongoing initiatives like formalized programs with defined objectives, resource planning, and service-level expectations, legal teams create consistency and predictability in how they support their organizations.

This programmatic approach enables legal teams to engage earlier and more meaningfully in business decisions, whether through privacy impact assessments, AI risk reviews, or complex contract negotiations. Rather than being consulted after decisions are made, legal operations helps position legal professionals at the decision-making table from the outset.

The Multidisciplinary Approach

Today's most successful legal operations teams reflect a multidisciplinary approach, combining legal expertise with specialized skills from other disciplines. Legal professionals comprise 47% of teams, IT specialists represent 44%, and finance experts make up 36% of legal operations professionals. This blend enables legal departments to scale effectively without proportionally scaling legal spend.

For legal leaders seeking to build or enhance their legal operations capabilities, we encourage reading our comprehensive guide, "What Is Legal Ops? Why Every Legal Department Needs It Now," which provides detailed frameworks for implementing structured legal operations functions and demonstrates how to measure success through actionable metrics.

Looking Ahead: Strategic Positioning for Success

The second half of 2025 promises to be equally dynamic. Legal leaders who successfully navigate current challenges will likely share several characteristics:

1. Strategic thinking: Moving beyond day-to-day firefighting to focus on long-term value creation and business enablement.
2. Technology pragmatism: Adopting a measured approach to AI and legal tech that prioritizes practical implementation over flashy features.
3. Flexible resourcing: Building teams that combine permanent staff with flexible talent to create more agile operations.
4. Operational excellence: Investing in processes, systems, and capabilities that enable efficient, effective legal service delivery.
5. Peer learning: Actively engaging with the broader legal community to share best practices and learn from others' experiences.

Navigating Transformation Together

As Axiom continues its journey through 2025's in-house conference circuit, we're committed to facilitating these important conversations and sharing insights that help legal leaders navigate an increasingly complex environment. The challenges are real, but so are the opportunities for those willing to embrace change and think strategically about the future of legal work.

The legal profession is undergoing its most significant transformation in decades. Budget pressures, technological advancement, and evolving business expectations are forcing fundamental changes in how legal services are delivered. Organizations that adapt thoughtfully and strategically will emerge stronger and more valuable to their stakeholders.

💡 Ready to join the conversation? Check out our events page to stay tuned for more conferences Axiom will be attending throughout the second half of 2025.