The Modern General Counsel: Evolving from Legal Gatekeeper to Business Strategist

Introduction

The role of General Counsel (GC) is evolving at an unprecedented pace. Traditionally, GCs were seen as legal gatekeepers, ensuring compliance and mitigating risks. However, in today's dynamic business landscape, their role has expanded beyond contracts and compliance to encompass cybersecurity, risk management, and ESG (Environmental, Social, and Governance).

With the rise of AI, automation, and regulatory complexity, GCs must now act as strategic business partners—driving innovation, enabling efficiency, and aligning legal functions with overarching corporate goals. But how can they effectively transition into this new role?

This article explores the key shifts in the modern GC’s responsibilities, the challenges they face, and the skills they need to thrive in 2025 and beyond.

Key Takeaways

• The traditional GC approach is outdated—modern GCs must go beyond legal risk management and embrace a business-centric mindset.
• Self-service legal tools and automation allow GCs to empower business teams while focusing on higher-value work.
• AI oversight is crucial—GCs must ensure compliance, mitigate risks, and establish AI governance policies within their companies.
• Legal tech adoption is no longer optional—CEOs and CFOs expect legal teams to use AI for efficiency and strategic advantage.
• Regulatory complexity is increasing—cybersecurity, ESG, and compliance must be integrated into corporate strategy.
• GCs must develop business acumen and leadership skills to align legal functions with business goals and provide data-driven insights.
• Challenges remain—budget constraints, lack of digital skills, and AI compliance risks must be addressed.

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Ready to Set Your Strategy? Download our “Playbook for General Counsels in 2025” to use as your guide.

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1. The Traditional Approach to the GC Role

Traditionally, GCs focused primarily on legal risk management, ensuring contracts were sound, compliance was met, and litigation was avoided. Their core responsibilities included:

• Contract drafting and negotiation.
• Litigation management.
• Compliance enforcement.
• Training employees on legal risks.

While effective for legal oversight, this approach often positioned legal as a bottleneck rather than a strategic enabler of business growth. Business teams saw legal as a necessary but slow-moving gatekeeper rather than an integrated partner.

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2. How the GC Role is Changing

Thinking from First Principles

Modern GCs must analyze legal tasks from first principles rather than defaulting to “how things have always been done.” Instead of merely maintaining existing legal processes, GCs should evaluate how legal functions can support business efficiency and growth.

For instance, many legal tasks can be automated or delegated to business teams using AI-driven contract lifecycle management (CLM) systems. By taking a fresh perspective, GCs can prioritize high-value strategic work rather than getting bogged down by repetitive legal tasks.

Empowering Business Teams with Self-Service Legal Tools

Legal bottlenecks frustrate business teams and slow down operations. The modern GC must enable non-legal teams to self-serve on lower-risk legal matters using AI and contract automation tools.

By implementing self-service platforms that provide guided contract generation, automated approvals, and AI-driven compliance checks, GCs can:

• Reduce the volume of routine legal inquiries.
• Accelerate contract negotiations.
• Free up time for high-level legal strategy.

AI Governance: The GC’s New Responsibility

AI is revolutionizing legal operations, but it comes with risks. GCs are now responsible for setting AI policies within their organizations to ensure:

• AI tools comply with data privacy and cybersecurity regulations.
• AI-generated content does not introduce legal risks or bias.
• Employees understand the limitations and risks of AI-powered decision-making.

Understanding, vetting, and governing AI tools is now a core competency for General Counsels.

Experimenting with Legal Tech: A C-Level Expectation

CEOs and CFOs expect GCs to use AI and automation to improve efficiency. In-house legal teams must build AI literacy and stay updated on emerging technologies to:

• Handle rising workloads without increasing headcount.
• Improve contract analysis and risk assessment.
• Leverage predictive analytics for better decision-making.

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3. How GCs Can Adapt to These Changes

Building Stronger Relationships with CEOs and CFOs

To elevate their role, GCs must align legal strategy with corporate goals and communicate legal risks in business terms.

Successful GCs are now expected to:

• Provide data-driven insights on legal risks and business opportunities.
• Collaborate with finance teams to quantify legal risks in financial terms.
• Act as key decision-makers on corporate governance, ethics, and strategic initiatives.

Navigating Regulatory Complexity

As global regulations become more intricate, GCs must integrate compliance into business strategy. Key areas of focus include:

• Cybersecurity and Data Privacy – Ensuring regulatory compliance in an era of increasing cyber threats.
• ESG and Corporate Social Responsibility – Addressing environmental, social, and governance risks in corporate decision-making.
• M&A and Expansion Risks – Assessing regulatory and compliance risks for global expansion.

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4. Challenges and Pitfalls in Legal Tech Adoption

Despite the benefits of AI and automation, legal departments face significant hurdles:

• Budget Constraints – Many legal teams struggle to secure funding for legal tech investments.
• Lack of Digital Skills – Traditional legal training does not cover AI, automation, or data analytics.
• AI Oversight Is Essential – While AI speeds up legal work, it still requires human oversight to ensure accuracy and compliance.

To overcome these challenges, GCs must build strong business cases for legal tech investment, emphasizing cost savings, efficiency, and risk reduction.

Ready to Set Your Strategy? Download our “Playbook for General Counsels in 2025” to use as your guide.

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Conclusion: Embracing the Future

The General Counsel of 2025 is not just a legal expert but a business strategist, risk manager, and technology leader. By embracing AI, automation, and self-service legal tools, GCs can unlock new efficiencies, reduce bottlenecks, and provide greater strategic value to their organizations.

The path forward requires:

• A shift from legal gatekeeper to business enabler.
• Proactive AI and legal tech adoption.
• A strong partnership with CEOs and CFOs.

By staying ahead of legal tech trends and regulatory challenges, modern GCs can transform their legal departments from cost centers into business accelerators.

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