Congrats to Relativity and FTI Consulting for releasing part one of The General Counsel Report 2025! A portion of the press release is below, here’s a link to the full release!
The General Counsel Report Identifies Priorities and Biggest Drivers of Cost Increases for Legal Departments
WASHINGTON, Feb. 18, 2025 (GLOBE NEWSWIRE) — FTI Consulting, Inc. (NYSE: FCN) and global technology company Relativity today announced findings from part one of The General Counsel Report 2025. The study found that 85% of general counsel expect corporate risk and demand on the legal department to increase at an accelerating rate in the year ahead. This expectation is combined with a reported increase in the overall volume of disputes and investigations, which is now considered a top five risk for 51% of general counsel and a leading driver for increased costs.
This sixth annual edition of the report is based on findings from one-on-one interviews between Ari Kaplan Advisors and chief legal officers at large corporations around the world, as well as a quantitative survey of more than 200 general counsel in a dozen countries. Together, the two data pools examined the current state of global corporate legal functions and year-over-year analysis of developing trends. Alongside the reported uptick in risks surrounding disputes and investigations, regulatory compliance topped the list of concerns among legal department leaders, with 41% ranking it as the number one risk. Additionally, 32% said the frequency of disputes and civil litigation is also increasing.
Data challenges have continued to complicate the mix of issues facing general counsel. When asked about the risks of emerging data sources such as collaboration applications, linked content and cloud productivity platforms, 88% of general counsel interviewed said they are concerned, with 59% classifying their concern as high or extreme. More than half (57%) have experienced new compliance challenges related to emerging data sources and 65% said they are minimally prepared or not prepared at all to handle issues related to emerging data sources.
“General counsel continue to amplify their role as a guardian of data, risk, incident response, and increasingly, company strategy,” said Sophie Ross, Global Chief Executive Officer of FTI Technology. “Through an increasing openness to technology, a focus on business objectives and reliance on strategic expert partners, most general counsel have struck a realistic balance between absorbing increased risk and fueling growth within their organizations. Given the current fluidity across business, technology and regulatory environments, general counsel will need to maintain this careful balance and prioritize adaptability across the evolving landscape of data-driven challenges.”
Key findings covered in part one of The General Counsel Report 2025 include:
- Half said the cost of disputes and investigations has grown, with some attributing the increase to more complexity, more data and stricter regulations.
- The percentage of general counsel who consider regulatory compliance to be their number one risk increased by 11 percentage points from the prior year’s report to 41%.
- When asked which regulations they are following closely in the year ahead, general counsel were most focused on privacy regulation in jurisdictions outside the United States (44%), the EU AI Act (35%) and other AI regulation in jurisdictions outside the United States (35%).
- Data privacy continues to be considered a leading risk overall, and 61% of general counsel indicated data privacy takes up the most time from the legal department, while 58% said incident response matters such as data breaches take up the most time.
- More than one-third said internal investigations are the top trigger for all their disputes and investigations activity and 25% cited whistleblowers as a leading factor.
- More than 75% said they are addressing widening risks through increased reliance on law firms, compared to 63% in the 2024 report.
“Not surprisingly, with new governments in the UK and the United States, we saw a substantial increase in chief legal officers reporting regulatory compliance as a major risk in this year’s sixth annual edition of The General Counsel Report,” said David Horrigan, Discovery Counsel and Legal Education Director at Relativity. “Data privacy and data protection lead the way as regulatory risks, and, in the era of rapid change, an overwhelming majority predict risk to increase at an even faster rate.”
The General Counsel Report 2025 is available for download here. Part two will be released in March 2025.
Demographics and Methodology
In July and August 2024, Ari Kaplan personally interviewed 34 leaders serving as the general counsel or chief legal officer of their organizations. Sixty-five percent have a role with global responsibilities and 63% work in organizations with more than $500 million in annual revenue. Separately, in September 2024, Censuswide conducted a quantitative survey of 207 general counsel and chief legal officers at organizations with more than $100 million in annual revenue and more than 1,000 employees in South America, North America, Europe and Asia Pacific.
Congrats again to Relativity and FTI Consulting for releasing part one of The General Counsel Report 2025! Can’t wait for part two!
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