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New research has found that almost 80 per cent of in-house legal heads are worried about increased risk following unprecedented regulatory, policy and business uncertainty.
Ninety-eight per cent of legal department leaders are increasing budgets and mobilising teams to address complex diversity, equity and inclusion (DEI), AI, trade, and cyber security challenges, according to new research from Axiom.
The new report, Mobilizing for Uncertainty: How In-house Legal Leaders are Responding to 2025’s Policy, Economic, and Business Shockwaves, revealed that 79 per cent of leaders in-house are concerned about increasing risks, as well as a “perfect storm” of policy, economic, and business disruptions. Forty-one per cent also reported that their organisations are currently confronting “high” or “extremely high” legal risk.
The report is based on a survey of 205 general counsel, deputy general counsel, and chief legal officers at global companies across 19 industries with revenues of $500 million to over $10 billion, polled by InsightDynamo. The resulting “flash survey” revealed that lawyers in-house are under increasing pressure, with 74 per cent of respondents reporting concerns about maintaining team effectiveness if the pace of change accelerates, and 16 per cent already reporting diminished team effectiveness.
In terms of resourcing concerns, 58 per cent of respondents said their organisation lacks data privacy and cyber security resources, while 50 per cent said they didn’t have the resources to address AI and technology regulation. To address resourcing concerns, 42 per cent said they were upping their outside counsel spend, while 41 per cent said they were using alternative legal service providers as a cost-effective alternative to law firms.
According to Axiom’s senior vice president and general counsel, Ashlin Quirk, the data “presents a clear picture of the current legal landscape”.
“With 79 per cent of legal leaders reporting elevated risk levels, we’re observing a pragmatic response across the profession. What’s particularly noteworthy is not just the substantial budget increases – with 98 per cent of departments expanding their resources – but how those funds are being allocated,” she said.
“Legal leaders are strategically redirecting investments toward technology solutions and alternative legal service providers to address specialised needs in AI regulation, cyber security, and other complex areas. This represents a meaningful evolution in how legal departments are structured to manage risk in today’s environment.”
Elsewhere in the report, legal leaders identified DEI requirement changes (50 per cent), AI regulation and compliance (43 per cent), cyber security and data privacy (43 per cent), and trade policy shifts (42 per cent) as creating the most significant workload increases. These disruptions, according to the report, are exacerbated by in-house resource gaps in these areas.
Nearly all respondents (98 per cent) also reported increasing their legal department budgets for 2025, with 47 per cent implementing moderate increases (10-25 per cent) and 26 per cent making significant increases exceeding 25 per cent.
To respond to these ongoing challenges, legal department heads reported that they were prioritising implementing legal technology solutions (45 per cent), as well as hiring additional full-time employees (37 per cent).
“This moment represents both a challenge and an opportunity for in-house legal teams,” Quirk said.
“The research shows top legal leaders at global organisations are using a similar playbook to mobilise their teams and mitigate risk during these uncertain times. They’re strategically investing in technology, talent, and flexible talent resourcing models to ensure they emerge as more valued, agile, and effective business partners – and that their companies remain resilient.”
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Lauren is a journalist at Lawyers Weekly and graduated with a Bachelor of Journalism from Macleay College. Prior to joining Lawyers Weekly, she worked as a trade journalist for media and travel industry publications and Travel Weekly. Originally born in England, Lauren enjoys trying new bars and restaurants, attending music festivals and travelling. She is also a keen snowboarder and pre-pandemic, spent a season living in a French ski resort.
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Lauren Croft
