In-house legal functions are at a crossroads and what they do now will drive their role and value going forward. The pressure to deliver more strategic value, manage risk and drive efficiency has never been greater. Meanwhile, the rapid evolution of AI is fundamentally reshaping both what is possible and what is expected of legal teams. Legal leaders should be asking themselves:
How do we move beyond experimentation and incremental productivity gains to achieve real, sustainable transformation?
Technology alone is not the answer, and it does not exist in a vacuum. True transformation begins with the stakeholder and team experience and reimagining your in-house legal operating model accordingly. By aligning the following five foundational pillars, organisations can unlock the full potential of AI through a holistic, integrated approach.
1. Strategy and Governance
Central question: Is your AI ambition anchored in a clear strategy for the legal function, aligned to the strategy of the organisation, and supported by robust governance?
How does AI align with your function’s objectives considering your role in risk management, business partnership, cost optimisation, and unlocking new value from data? How will strategic change reshape your delivery model? Do you have the right frameworks in place to ensure ethical, compliant and effective AI adoption?
2. People and Culture
Central question: What do you need to do to ensure your team is ready for the future of legal work?
Are you proactively developing the skills, roles and mindsets needed to thrive alongside AI? How are you fostering a culture that embraces change, continuous learning and collaboration between humans and technology? Do you have the necessary learning and development programs in place to enable your people?
3. Sourcing and Delivery
Central question: How will you oversee delivery of the whole gamut of legal services in an AI-enabled world?
How are you allocating work across in-house teams, external counsel, business self-service and AI tools? What frameworks guide your decisions about what should be automated, outsourced, or retained in-house? Where are the opportunities for cost optimisation and faster delivery for competitive advantage?
4. Process and Operations
Central question: Are your processes and operations ready for AI?
Which workflows are sufficiently standardised to enable AI overlay? How are you laying the operational and design foundations for successful AI integration? What steps are you taking to prepare for scalable AI adoption? Where might AI agents be deployed responsibly?
5. Technology and Data
Central question: Do you have the right technology and data strategy to realise your AI goals?
How are you selecting and integrating technology to support your legal strategy? Do you have the data quality, structure and accessibility needed to unlock the full benefits of AI? Are you measuring and monitoring the impact of AI on efficiency, service quality and business outcomes? What changes might to make to your legal tech stack and how will it integrate with enterprise systems?
Moving from ambition to execution
Each pillar plays a vital role, but it is their integration that drives meaningful transformation and unlocks the value. Leading in-house legal teams don’t just adopt AI tools, they embed AI considerations across their operating model.
At a high-level, this means:
- Strategic alignment: Every AI initiative is tied to clear business outcomes.
- People-first transformation: Teams are equipped and empowered to work alongside AI.
- Operational discipline: Processes and data are ready for automation and insight generation.
- Technology as an enabler: The right tools are selected, integrated and governed for maximum impact.
The AI revolution in legal services is not coming; it is here. By focusing on the operating model fundamentals, in-house legal functions can unlock lasting value and position themselves for success in an AI-enabled future.
What’s next in this series?
Over the coming weeks, we will work through each pillar to unpack the central questions, sharing actionable insights and leadership guidance to help you move from ambition to execution. Whether you are just starting your AI journey or looking to scale, this series will provide practical frameworks and insights to guide you as you reimagine your legal operating model.
Stay tuned as we explore:
- Anchoring your AI ambition in legal strategy.
- Building trust and confidence with AI to drive successful change in your legal team.
- Rethinking sourcing and delivery models in an AI world.
- Preparing your processes and operations for AI enablement.
- Equipping you with technical considerations when reviewing AI technologies.
