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Deloitte has identified three trends that are changing how Chief Legal Officers work within large organizations. Bryan Foster, principal at Deloitte Transactions and Business Analytics LLP, Holly Tucker, partner, and Erin Hess, manager at Deloitte Financial Advisory Services LLP, share that the CLO’s responsibilities now go well beyond traditional risk oversight. For in‑house legal teams, these shifts have practical, immediate impacts, legal is stepping into a central role in enterprise strategy, technology governance, and workforce design.
These predictions matter because they reflect the real pressures legal leaders feel today. Regulatory complexity keeps rising, generative AI is reshaping legal work, and boards and executive teams are raising their expectations. Together, these forces are prompting in-house counsel to rethink how legal adds value and fits into the broader business.
From Risk Function to Strategic Control Point
Legal departments have traditionally focused on managing downside risk, responding to issues, and controlling external spend. Deloitte’s analysis shows this approach is no longer enough. As regulatory requirements increasingly influence business decisions, from data usage and cybersecurity to supply chains and AI, legal insight needs to come in earlier and at a larger scale.
For general counsel and CLOs, the shift changes the legal operating model. Now, the business expects legal to provide real-time guidance informed by data and technology while also relying on professional judgment and independence. These predictions highlight a broader market trend, legal functions are now measured less by how much work they process and more by the quality and timeliness of their strategic advice.
Deloitte Signals a Structural Reset for the CLO Role
Through its CLO Program, Deloitte identified three developments it expects to reshape the in‑house legal function over the coming year:
- The continued expansion of CLO influence across enterprise decision‑making.
- The need for a distinct, fit‑for‑purpose approach to AI within legal teams.
- A reconfiguration of legal talent, with growing demand for hybrid legal, data, and process skills.
Instead of describing these shifts as far-off changes, Deloitte highlights that they’re already happening and picking up speed.
How the Shift Shows Up Inside Legal Departments
1. Expanding CLO influence
Deloitte notes that CLOs are getting involved in areas that used to belong to business or technology leaders. The change reflects how quickly and complexly regulations are evolving, often deciding whether a strategic initiative moves forward.
In‑house legal teams are adapting by bringing risk assessment into daily operations. Rather than waiting to escalate issues at the end, they include legal input early, during product design, technology rollouts, or market entry planning. The approach helps organizations adjust before regulatory or contractual risks set in.
The broader role is clear in areas like cybersecurity governance. Boards now expect legal leaders to handle not just compliance but also incident readiness and disclosure strategies. Supply chain oversight is a growing legal priority as sanctions, trade controls, and ESG requirements evolve faster than traditional review processes can keep up with.
Bryan Foster at Deloitte often points out that the real value comes from turning regulatory interpretations into practical business choices. More and more, this translation skill defines what it means to be a CLO.
2. A different AI playbook for legal
Deloitte’s second prediction focuses on technology strategy. Legal departments, the firm notes, don’t fit neatly into enterprise AI rollouts that work for sales, finance, or operations. In‑house legal teams usually rely on a mix of specialized tools, contract management, e‑discovery, compliance tracking, often from different vendors and built on different data systems.
Instead of imposing a single AI platform, Deloitte sees CLOs adopting a targeted approach. They focus on high-volume, rules-based tasks where AI can reliably support human effort, like contract review, litigation triage, regulatory monitoring, and internal investigations.
The approach depends less on advanced algorithms and more on foundational data. Centralized, well-maintained repositories of contracts, matters, and regulatory interpretations are becoming strategic assets. Without strong data foundations, AI tools can’t deliver reliable results.
Deloitte points to changes in how legal services are delivered. The old model, internal team versus external counsel, is giving way to an ecosystem where internal teams, law firms, and alternative providers all use AI differently. Now, the CLO’s job is to orchestrate that ecosystem by setting standards, managing risk, and making sure everyone stays accountable.
3. Talent and skills reconfiguration
The third prediction spotlights people. As generative AI shortens the time it takes to handle certain legal tasks, the skills legal departments need are shifting. Some skills are fading from center stage, while others, once seen as peripheral, are becoming essential to the function.
Deloitte highlights roles like legal operations leads, automation specialists, data analysts, and legal technologists as increasingly common. These positions help the scale of legal teams and stay consistent, so they can handle more work without needing larger teams.
The shift puts pressure on traditional career paths. In-house lawyers now need to build skills in process design, technology adoption, and cross-functional teamwork. Deloitte suggests the answer isn’t resistance, but structured upskilling that lets legal professionals work with AI, not against it.
Why Institutional Legal Capability is Now a Competitive Variable
Taken together, these three predictions show that institutional legal capability is being redefined. Companies with CLOs who blend regulatory insight, data governance, and a real grasp of operations are better able to make smart strategic decisions in uncertain times.
From a market perspective, the change widens the gap between legal functions that adapt and those that don’t. Teams that stay reactive risk turning into bottlenecks. But if legal invests in data infrastructure, targeted AI, and new skills, it can influence outcomes sooner and often reduce both risk and cost.
For boards and executive teams, the shift changes what they expect from legal. It’s no longer just about avoiding risk, now, legal is measured by its contribution to enterprise resilience and strategic agility.
Managing a More Fragmented Legal Operating Ecosystem
Deloitte’s analysis highlights how important cross-functional collaboration has become. As legal technology gets more intertwined with enterprise systems, CLOs and CIOs need to work closely together. Choices about data architecture, access controls, and AI governance now involve both legal and technical considerations, they can’t be solved in isolation.
Externally, law firms and service providers are adapting at different speeds. In-house leaders set the tone for how technology is used, how data is shared, and how accountability is maintained throughout the legal ecosystem.
What the Next Phase of the CLO Role Will Test
Deloitte’s predictions make it clear: the transformation of in-house legal functions isn’t just a temporary reaction to new technology or regulation. It marks a long-term change in how legal value is built and measured.
Over the next year, CLOs who expand their strategic influence, embrace AI where it fits, and invest in new capabilities will shape how their organizations navigate uncertainty. These choices will decide whether legal remains a support function or become a central architect of enterprise decision-making.
For general counsel and CLOs, the message is practical, not just aspirational: the role is changing no matter what. The real question is whether legal leaders choose to lead that change or let it reshape them.
Authored by: Stella Nolan is the Editor of American Healthcare Leader and Modern Counsel Magazine and a regular contributor to Manufacturing Today, all published by Finelight Media Group. With over a decade of experience in senior editorial roles, Stella creates commercially savvy, engaging content for global brands. Based in the UK, she brings sector expertise and compelling storytelling to topics like digital transformation, advanced manufacturing, EV infrastructure, and the impact of AI on industry. Stella’s focus includes DEI, AI, procurement, and telecoms, where she profiles industry leaders and curates essential features for in-house counsel and healthcare professionals.
