CSC Study Reveals Generative AI Revolutionizing Legal Departments

CSC

WILMINGTON, DE — Global legal departments are rapidly adopting generative artificial intelligence (AI) to streamline operations and stay ahead of escalating compliance demands, according to CSC’s newly released General Counsel Barometer 2025. The comprehensive study surveyed 350 general counsels (GCs) and legal compliance officers across key markets, uncovering significant technological shifts shaping the legal landscape.

Generative AI has emerged as a game-changer, with 97% of legal teams already integrating the technology into their operations. Nearly half (49%) report that AI tools are significantly enhancing their teams’ efficiency, tackling complex legal work and bolstering resilience under increasing operational strain. Benefits include managing larger workloads (66%), improving processing times (40%), and strengthening fraud detection and risk management (41%).

“Even a year ago, everyone was interested in AI, but at the same time, they were standing on the sidelines and questioning its reliability,” said Thijs van Ingen, global head of Corporate Solutions at CSC. “We’re now seeing real added value and productivity gains, particularly in areas like mergers and acquisitions. The move towards tech-enabled solutions demonstrates that GCs are acting decisively to modernize in the face of rising pressures.”

Despite the enthusiasm, legal teams are proceeding with caution. Seventy-two percent of GCs have established governance policies to manage AI use, citing top concerns such as fraud, data privacy, and potential risks associated with third-party tools.

“AI is here to stay—but responsible use is key,” said Ian McConnel, chief legal officer at CSC. “GCs are rightly focused on governance, accuracy, and data integrity. Success in embedding AI into legal operations will hinge on ensuring that data driving these tools is accurate, robust, and secure.”

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One of the study’s stark findings is the expectation of rising legal and regulatory costs, with 72% of GCs foreseeing increased expenditures over the next three years. However, only 27% feel fully prepared to meet emerging requirements, such as expanded beneficial ownership disclosures. Compliance demands were identified as the top risk for legal operations heading into 2025.

To address these challenges, legal departments are not only leveraging technology but also increasing reliance on external partners. Nearly 58% of GCs report outsourcing to specialist providers for scalable, tech-enabled support across jurisdictions.

“As organizations pursue global expansion, GCs are leading the charge,” added van Ingen. “Through smarter systems and strategic partnerships, GCs are playing a critical role in helping companies manage risk, drive efficiency, and scale legal operations globally. This reflects a pivotal shift in the legal function, with GCs steering their organizations towards a more agile, tech-enabled future.”

CSC’s findings showcase the legal field’s accelerating transformation, underscoring the role of technology and strategic leadership in navigating the complex compliance landscape of tomorrow.

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