A newly released report by Thomson Reuters, The 2025 State of the Corporate Law Department, sheds light on significant shifts occurring within corporate legal teams. The report reveals that general counsels and in-house legal departments are evolving their strategies, rethinking their roles within companies, and adjusting to the rapidly changing business and legal landscapes. The findings from the report highlight several key trends that are transforming how legal departments approach their work and collaborate with other business functions.
One of the most notable shifts revealed by the report is the increasing focus on value orientation over simple cost control. Traditionally, legal departments have been seen as cost centers, primarily focused on reducing legal expenses. However, the 2025 report shows a marked shift, with many legal departments positioning themselves as strategic partners to the business. Instead of just focusing on controlling costs, these departments are emphasizing their role in mitigating risks and creating value for the company. General counsels and their teams are now seen as integral players in the company’s broader strategic initiatives, helping to drive growth and enhance value in ways that go beyond just managing legal spend.
Technology and process improvements are also a major focus for many corporate legal teams. The report indicates that a growing number of legal departments are investing heavily in new technology tools to streamline operations. Many are accelerating the adoption of artificial intelligence (AI) tools, contract lifecycle management systems, and automation technologies to handle repetitive tasks that traditionally consumed much of a lawyer’s time. By leveraging these tools, legal departments are freeing up their in-house counsel to focus on higher-value work, such as strategic decision-making, risk analysis, and business development. This shift towards automation is not only enhancing efficiency but also driving greater value creation within the organization.
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Additionally, the report highlights a significant trend toward integrated collaboration between legal departments and other business units. In-house counsel are no longer waiting to review final deals or documents; instead, they are being brought in early during business planning, mergers and acquisitions (M&A), regulatory changes, and compliance efforts. This shift toward proactive engagement ensures that legal teams can provide strategic input from the outset, allowing companies to anticipate and mitigate potential legal risks before they become issues. By embedding legal counsel into the decision-making process at earlier stages, corporate legal departments are aligning more closely with the overall business strategy and offering more comprehensive support to executive leadership.
These trends reflect broader shifts within the legal industry in 2025, where both law firms and corporate teams are emphasizing agility, technological fluency, and a closer alignment with business goals. The traditional divide between legal departments and other business functions is narrowing, as legal teams are now seen as vital contributors to the strategic direction of the business. General counsels are taking on a more prominent role in decision-making, moving beyond the confines of risk management and becoming integral to the leadership team’s discussions on growth, market expansion, and business development.
As corporate legal departments continue to evolve, they are increasingly being recognized as full partners in the decision-making process, not just as advisors who manage risk. This evolution highlights the growing recognition of legal teams as valuable strategic assets that help guide businesses through complex regulatory landscapes, protect corporate interests, and create opportunities for growth. The ongoing transformation within these departments signals a new era of corporate legal work, one where technology, strategic thinking, and early collaboration are key to success.
