In an era of budget constraints, corporate law departments are finding innovative ways to improve their operations and demonstrate their value to the broader organization. The 2025 State of the Corporate Law Department Report by Thomson Reuters Institute reveals that general counsels are increasingly turning to technology to boost efficiency and enhance the overall effectiveness of their teams. As companies face tightening budgets and higher expectations for performance, legal departments are embracing digital solutions to streamline processes, reduce costs, and deliver more value to their organizations.
One of the key takeaways from the report is the growing emphasis on defining and communicating the value of legal teams within companies. Traditionally, legal departments have been seen as cost centers, but there is a shift towards positioning them as key players in achieving organizational goals. General counsels are focusing on not only ensuring legal compliance but also improving the effectiveness and efficiency of legal operations. In many cases, technology plays a crucial role in this transformation, enabling legal teams to manage complex tasks, track performance, and optimize workflows more efficiently.
The report highlights that more legal departments are adopting advanced legal technologies such as artificial intelligence (AI), data analytics, and contract management systems. These tools are being used to automate routine tasks, analyze large volumes of legal data, and streamline contract review processes. For example, AI-powered platforms can help legal teams identify potential risks in contracts or predict legal outcomes based on historical data, which allows them to focus on higher-value strategic work. This shift to technology is helping legal departments handle increasing workloads without needing to expand their teams or significantly increase their budgets.
At the same time, corporate legal departments are under increasing pressure to demonstrate the value they bring to the company beyond just managing legal risks. The report shows that general counsels are focusing on key performance indicators (KPIs) and metrics that clearly show how the legal department contributes to the business’s bottom line. This includes providing measurable outcomes such as cost savings from technology implementations, the reduction of legal spend, and improved risk management practices. By leveraging technology, legal teams can gather data that supports these claims and present a more compelling case for their value within the organization.
Despite the budgetary challenges they face, corporate law departments are also focusing on innovation to stay ahead. Many are exploring new approaches to legal work, including outsourcing to alternative legal service providers (ALSPs) and partnering with external experts to handle specialized legal tasks. These strategies are allowing companies to access top-tier legal talent without the overhead of maintaining large in-house teams, thus further optimizing legal spend.
In conclusion, as corporate law departments continue to face financial pressures, technology is proving to be a crucial tool in ensuring they remain effective, efficient, and valuable to their organizations. By embracing new digital tools and innovative approaches, legal departments are finding ways to navigate budget constraints while still delivering high-quality legal services. As the legal landscape evolves, technology will play an even greater role in shaping the future of corporate legal operations.
