Source: Axiom

General Counsels (GCs) are navigating uncharted waters in today's legal industry. With an average 12% reduction in their department budgets and rising complexity in both legal and regulatory frameworks, GCs are expected to do more with fewer resources. A staggering 72% of GCs express concern about not having the budget or staffing needed to meet their legal obligations, but adding more in-house resources seems unlikely as 87% foresee a hiring freeze in the coming year. As a result, GCs are forced to rethink their strategies and find innovative solutions to manage their growing workload.

Traditionally, law firms have served as a go-to solution for handling excess legal work. However, a large portion of GCs report dissatisfaction with this model. While 99% of GCs engaged with law firms in the past year, 87% admit that these firms did not fully address their resourcing challenges. This has prompted legal departments to reconsider the utility of relying solely on external firms for everyday tasks, seeking more efficient, cost-effective alternatives. New legal technologies and modern service providers are stepping in as alternatives that offer the flexibility and agility GCs need in this environment.

Looking forward, GCs are increasingly turning to innovative technologies, such as generative AI and operational tools, to meet their needs. These technologies allow legal departments to streamline workflows, cut costs, and handle large amounts of data more effectively. Additionally, building out operations professionals within their teams helps address administrative and operational bottlenecks. This modern approach not only alleviates the resource crunch but also empowers GCs to take control of their budgets while maintaining a high level of legal expertise and service. The key is adopting a flexible resourcing matrix that allows for tailored solutions that can evolve with the needs of the department and the business it serves.

Read Further: Axiom