In the face of unprecedented policy, economic, and regulatory uncertainty, in-house legal leaders find themselves at a pivotal crossroads— one that presents both extraordinary challenges and unique opportunities for transformation.
Axiom's recent "Mobilizing for Uncertainty" survey of 205 in-house legal leaders reveals that legal departments across industries are experiencing a profound shift in their organizational importance. Far from being merely reactive, these departments are actively mobilizing to address converging disruptions while simultaneously accelerating their strategic transformations.
The Perfect Storm of Legal Challenges
Rarely in recent memory has the in-house legal function been thrust so prominently into the spotlight. Today's legal issues have become critical business challenges, requiring general counsels to organize their teams, step into the boardroom, and become the voice of direction, measured risk assessment, agility, and courage. Rather than shrinking from complexity, this moment demands that legal leaders rise to the occasion.
Our survey findings validate this observation:
- 41% of in-house legal leaders report their organizations face high or extremely high legal risk due to the rapid pace of change
- 80% perceive moderate to extremely high risk due to regulatory uncertainty
- 74% express concern about maintaining effectiveness if the pace of change increases
What's causing this massive workload increase? Our survey reveals the top three disruptors:
- DEI requirement changes (50%)
- AI regulation and compliance (43%)
- Data privacy and cybersecurity (43%)
Compounding these challenges, legal departments report significant resource gaps in specialized areas:
- 58% lack sufficient in-house resources for data privacy/cybersecurity
- 50% report insufficient expertise with AI and technology regulation
- 45% need additional international trade law resources
From Challenge to Opportunity: The GC's Strategic Moment
Rather than viewing this uncertainty as an insurmountable challenge, forward-thinking legal leaders are recognizing it as a pivotal moment to elevate their strategic influence.
For legal leaders who have aspired to be strategic advisors, this is the defining moment they've been preparing for. The current environment demands leaders who can navigate complex challenges, maintain unwavering resolve, and guide their organizations forward despite the obstacles. This isn't the time to retreat—it's the time to step up, assess the situation, and chart a clear path forward with conviction.
This approach represents a significant shift in how in-house counsel position themselves—not as reactive problem solvers, but as proactive strategic partners who help guide their organizations through turbulent times.
How Legal Leaders Are Responding
Our survey reveals that legal departments are employing a multi-faceted approach to address these challenges:
- 45% are implementing legal technology as their primary strategy
- 42% are increasing outside counsel spend
- 41% are utilizing alternative legal service providers (ALSPs)
Most notably, nearly all respondents (98%) anticipate increasing their legal department budgets for 2025, with 73% planning increases of 10% or more. This substantial budget reallocation demonstrates how seriously organizations are investing in mitigating legal risks during uncertain times.
The Three Pillars of Strategic Response
Based on both our survey results and leadership insights, we've identified three critical strategies legal departments are adopting to transform uncertainty into opportunity:
1. Embrace Your Catalytic Role
In-house counsel now have a unique opportunity to serve as catalysts for greater cross-functional integration. With legal considerations touching virtually every aspect of business operations, legal leaders can bring disparate teams together, facilitate enterprise-level decision-making, elevate key discussions, and ensure consistent implementation across their organizations. This is the essence of strategic legal leadership in action.
Our survey confirms this approach, with 58% of respondents identifying business unit satisfaction as their primary success metric, ranking it even higher than risk mitigation.
2. Deploy Flexible Resources Strategically
With specialized knowledge gaps significantly outranking simple resource constraints, legal departments are turning to flexible talent solutions. Of the 91% of respondents who used alternative legal service providers (ALSPs) in the past year, they reported three key benefits:
- Quick access to specialized expertise (46%)
- Ability to scale teams as needed (45%)
- Cost-effective alternative to law firms (41%)
This approach allows legal leaders to address specialized expertise gaps without long-term headcount commitments—a crucial advantage in rapidly changing regulatory environments.
3. Lead with Balanced Metrics
The most successful legal departments are balancing protection with partnership, implementing metrics that measure both:
- Business enablement (58% measure business unit satisfaction)
- Risk management (57% measure risk mitigation effectiveness)
- Fiscal responsibility (52% prioritize cost management)
This balanced approach positions legal not as a cost center but as a strategic driver of business outcomes.
This Is Your Moment
The current environment poses unprecedented challenges, but it also offers a defining professional opportunity. How legal leaders respond today will directly influence their strategic relevance and organizational standings in the future. Those who fail to step up may find themselves marginalized when the dust settles, while those who rise to the challenge will emerge with enhanced influence and credibility.
For legal leaders, this is more than a crisis to manage—it's an opportunity to redefine your role, build stronger cross-functional partnerships, and demonstrate the strategic value of legal expertise in navigating uncertainty.
The data is clear: your peers are mobilizing, and the legal departments that thrive will be those that view this moment not as something to endure, but as a catalyst to elevate their strategic influence.
Learn How Your Peers Are Responding
Want to explore how other in-house legal leaders are transforming their departments to address these unprecedented challenges?
Download the full "Mobilizing for Uncertainty" report for comprehensive insights and actionable strategies to position your team for success in this new era of legal leadership.