Editor’s Note: The General Counsel Report 2025, developed by FTI Consulting in partnership with Relativity and based on research conducted by Ari Kaplan Advisors and Censuswide, provides key insights into the evolving landscape of corporate legal risk. With increasing regulatory scrutiny, expanding data challenges, and rising dispute costs, general counsels are facing mounting pressures to balance legal risk with business objectives. The report highlights the growing reliance on external law firms, the complexities of AI and data privacy regulations, and the urgent need for proactive compliance strategies. As corporate legal environments become more intricate, legal leaders must adopt adaptable strategies, leverage technology, and engage expert partnerships to navigate the road ahead.


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Industry News – eDiscovery Beat

General Counsel Report Highlights Rising Legal Risks and Cost Challenges for 2025

ComplexDiscovery Staff

Legal departments worldwide are bracing for increased risk and rising costs, according to part one of The General Counsel Report 2025, released by FTI Consulting, Inc. (NYSE: FCN) and Relativity. The report, based on in-depth interviews and a survey of more than 200 general counsel across multiple countries, highlights a surge in corporate disputes, regulatory compliance concerns, and data challenges that legal leaders must navigate in the coming year.

Mounting Risks and the Cost of Compliance

A staggering 85% of general counsel anticipate an acceleration in corporate risk and legal department demands. Among the top concerns, 51% of legal leaders now view disputes and investigations as a primary risk factor, a trend that directly correlates with rising costs. More than half of those surveyed indicated that the financial burden of managing disputes has grown due to increased complexity, expanding data volumes, and tightening regulatory scrutiny.

Regulatory compliance has become the top risk for 41% of respondents, marking an 11-percentage-point increase from the prior year. This shift reflects the expanding global regulatory landscape, with privacy regulations and artificial intelligence (AI) governance emerging as key areas of focus. Specifically:

  • 44% of general counsel are closely tracking privacy regulations outside the United States.
  • 35% are monitoring the EU AI Act and AI regulations in other regions.
  • 61% say data privacy demands the most time from their legal teams.
  • 58% cite incident response, including data breaches, as a leading time-consuming issue.

The Role of Data in Legal Complexity

As legal departments grapple with evolving risks, data governance remains a persistent challenge. The emergence of new data sources—such as collaboration tools, linked content, and cloud productivity platforms—has raised concerns for 88% of general counsel. Of those, nearly 60% categorize their level of concern as high or extreme.

Adding to the challenge, 65% of general counsel admit they are minimally or not at all prepared to manage these emerging data risks. More than half (57%) report facing new compliance hurdles directly tied to modern data environments.

“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.”

Regulatory Shifts and the Expanding Role of Legal Departments

Legal teams are under greater pressure to navigate fast-changing regulations, particularly in the wake of new government leadership in the U.S. and the U.K. The latest report indicates that:

  • More than 75% of general counsel are increasing their reliance on law firms to manage risks, up from 63% in the prior year.
  • Internal investigations have become the primary driver of disputes and legal actions for over one-third of respondents.
  • Whistleblowers are cited by 25% of general counsel as a major catalyst for legal matters.

“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.”

Demographics and Methodology

The findings in The General Counsel Report 2025 are based on a combination of qualitative and quantitative research. In July and August 2024, legal industry expert Ari Kaplan personally interviewed 34 general counsel and chief legal officers from large corporations worldwide. Among these leaders, 65% hold global responsibilities, and 63% work in organizations with more than $500 million in annual revenue.

To supplement these insights, a quantitative survey was conducted by Censuswide in September 2024, gathering responses from 207 general counsel and chief legal officers. Participants represented organizations with at least $100 million in annual revenue and more than 1,000 employees across South America, North America, Europe, and Asia Pacific.

Looking Ahead

As legal teams prepare for the year ahead, they face a complex and rapidly evolving risk environment. From expanding regulatory oversight to the challenges posed by emerging data sources, the demand for proactive legal risk management has never been higher. Part two of The General Counsel Report 2025 is set for release in March, offering further insights into how legal departments can navigate these challenges.

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