General counsels turn to generative AI to manage compliance risks

General counsels and legal compliance officers are adopting generative artificial intelligence tools at high rates as they seek to address compliance demands and rising operational pressures, according to recent global research from CSC.

The study, which surveyed 350 general counsels and legal compliance officers across the Americas, Europe, and Asia Pacific, found that 97% of respondents have already incorporated generative AI tools into their legal operations. Nearly half of those polled said that these technologies are having a significant impact on their teams.

Efficiency was cited as a key advantage, with 66% of respondents reporting that generative AI enables them to manage higher volumes of work more effectively. In addition, 40% highlighted improvements in processing times, and 41% noted enhancements in fraud detection and risk management as a result of deploying AI-based tools.

Thijs van Ingen, Global Head of Corporate Solutions at CSC, commented on the findings, stating, "Even a year ago, everyone was interested in AI, but at the same time, were still standing on the sidelines and asking how trustworthy it was. We're now seeing real added value and productivity gains, particularly in complex areas like M&A. The shift towards tech-enabled partners shows GCs are acting decisively to modernize their departments in the face of mounting operational pressure."

Despite the rapid adoption of generative AI, legal leaders remain cautious about potential risks. The study revealed that 72% of general counsels have implemented internal governance policies to oversee AI usage. Their primary concerns include fraud, data privacy, and third-party risks related to the technology.

Ian McConnel, Chief Legal Officer at CSC, said, "AI is here to stay—but responsible use is key. GCs are rightly focused on governance, accuracy, and data integrity. As legal teams evolve, they're becoming leaders in embedding safe, effective AI into core business processes—but success will depend on ensuring the data sets behind these tools are both accurate and robust."

The research shows that legal departments face growing regulatory pressures, with 72% of participants expecting legal and regulatory costs to rise over the next three years. At the same time, only 27% of respondents felt "very prepared" for new requirements such as expanded beneficial ownership disclosures. The changing regulatory environment was identified as the top risk to legal operations in 2025.

To manage increasing workloads and the complexity of operating across multiple jurisdictions, nearly 58% of general counsels said they have increased outsourcing to specialist partners. This approach is influenced by resource constraints and the need for scalable, technology-enabled support.

Van Ingen also noted the evolving role of general counsels within organisations, stating, "As organizations pursue global expansion, GCs are leading the charge. By embedding smarter systems and forming strategic partnerships, GCs are playing a pivotal role in helping their organizations manage risk, drive efficiency, and scale legal operations globally. This marks a defining shift in the role of legal function, where GCs are guiding their organizations into a more agile, tech-enabled future."

The survey respondents represented a variety of industry sectors, including communications, banking and financial services, healthcare, insurance, law, and real estate.