Gatekeeper to
business enabler

The role of the general counsel in continental Europe has undergone an accelerated transformation, shifting from a narrow focus on legal risk containment to a broad, strategic mandate that positions them as a core driver
of business value. With the evolving regulatory landscape, and ongoing technological and geopolitical change, the role of GC has evolved into one which defines how businesses expand and operate safely in a rapidly shifting environment.

As regulatory obligations across ESG, data protection, cyber security and cross‑border compliance expand across Europe, businesses now require GCs to anticipate regulatory trends. In-house teams are now doing routine work, like basic contract reviews and compliance checks, that used to be handled by external law firms, as companies try to reduce reliance on outside counsel.

The rise of AI and the tools that in-house teams now use also further accelerate this shift, with one source from our research observing: “AI brings about comparable advantages for internal legal departments and firms. Engagement of internal legal departments is then more budget friendly.”

Watch: How increasing sophistication and new technology are rapidly transforming the GC role.

Lance Bartholomeusz, General Counsel and Head of the Legal Affairs Service, United Nations High Commissioner for Refugees (UNHCR)

This highlights both the potential efficiency benefits of in-house teams using AI, and the strategic repositioning of corporate legal departments. Sources identified a shift toward building and upskilling their internal teams, with businesses being more selective when it comes to hiring external counsel. One source noted: “The use of external consultancy has decreased significantly in recent years. External consultancy is used primarily for exceptional events that could have a significant impact on the business.” One key driver of this shift is cost pressures on the businesses, with one interviewee explaining that “the initiators have become significantly more cost-sensitive than was the case a few years ago.”

While AI provides in‑house teams with enhanced analytical tools and the opportunity to become more efficient, it also raises novel risk, governance and compliance questions that require assistance from external counsel. Businesses still seek external legal counsel for complex mandates, especially in the evolving regulatory environment and in instances where cross-border expertise is required. One source remarked, “Our business model is transitioning from generic-oriented to innovative-oriented deals. This will also increase complexities and the demand for external support, particularly in cross-national deals.”

Across continental Europe, GCs and in-house teams are required to be more strategic and innovative as technology and the legal landscape evolve.