WILMINGTON, DE — A sharp rise in service of process (SOP) volume is putting new pressure on in-house legal teams nationwide, increasing compliance risks and operational strain, according to a new study commissioned by CSC, the Wilmington-based registered agent and compliance services provider.
In a survey of 250 senior in-house counsel, respondents pointed to growing complexity, inconsistent state requirements, and heightened data-accuracy concerns as major obstacles in managing SOP. Sixty-one percent cited data accuracy as a top challenge, while 56% pointed to rising SOP volume. More than three-quarters said their legal departments now spend “too much” or “excessive” time handling SOP tasks.
Varying state rules appear to be driving many of the errors. Fifty-nine percent of respondents reported that differing state-by-state SOP requirements are creating compliance missteps, and 34% flagged fragmented intake processes that make it harder to maintain consistent standards. The expanding web of privacy regulations adds yet another layer of difficulty, raising the stakes for any lapse in how sensitive information is managed.
Paul Mathews, director of CSC Product Management, noted that the growing regulatory patchwork raises both financial and reputational risk. “In this environment, partnering with experienced registered agents that combine deep SOP expertise and integrated technology has become essential to maintain compliance, consistency, and speed,” he said.
Mass arbitration is emerging as a major contributor to the surge in SOP activity. Ninety-three percent of respondents said mass arbitration increases the risk and complexity of managing SOP, and nearly three-quarters have already seen a rise in reporting errors linked to this trend.
Technology is playing a more prominent role, but not without concerns. Nearly all respondents (97%) reported using some form of AI to manage or analyze SOP, yet 96% expressed doubts about whether current tools are accurate or fast enough to meet escalating demands. More than half said they are “very concerned,” reflecting broader anxiety about AI’s reliability in legal workflows. Many expect AI to increase filing volume as plaintiff firms adopt pattern-recognition tools to identify potential claimants more quickly.
Beyond AI, legacy systems continue to slow operations. Seventy-one percent of counsel said non-integrated systems complicate SOP management, 59% continue to use some manual processes, and nearly half rely on outdated technology that raises the risk of errors.
To meet rising workloads, legal departments are increasingly turning to outside partners. Seventy percent of respondents expect to expand SOP outsourcing in 2025, and more than 80% anticipate additional increases over the next three years as teams seek specialized, tech-enabled support capable of handling high-volume, multistate SOP processes.
CSC, which has served as a registered agent for more than 90% of Fortune 500 companies, says it continues to invest in technology and expertise to support organizations navigating growing regulatory complexity.
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