As the overseer of an organization’s legal function, the General Counsel seeks to be proactive and perform the role of a strategic advisor to the ELT, board, and the business while managing the in-house legal team. In considering how General Counsel will fulfill the role in 2025, they will face increasing pressure to anticipate risks, deliver operational efficiency, and lead business-enabling initiatives, all while managing evolving challenges that continue to reshape the legal landscape.
BarkerGilmore surveyed General Counsel/Chief Legal Officers about their challenges in 2025. While the themes are familiar, the stakes are higher. The five most pressing challenges this year are:
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Budgetary constraints
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Talent recruitment and retention
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Responsible technology adoption, especially AI
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Escalating regulatory complexity
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Rising outside counsel costs
Below is a breakdown of how these challenges are manifesting in 2025 and the broader implications for legal departments.
5 Challenges GCs Expect in 2025
1. Persistent Budget Constraints Amid Expanding Responsibilities
The top concern for GCs in 2025 remains budget management. However, the issue goes beyond cost control to value generation. Legal departments are being asked to do significantly more with flat or shrinking budgets.
The tension between ESG obligations, cybersecurity investment, and shareholder value remains, but GCs now also face the pressure of demonstrating ROI on every dollar spent. Legal operations leaders are increasingly tasked with benchmarking productivity and implementing metrics-driven dashboards to justify expenditures.
2. Recruitment and Retention in a Skills-Based Market
Legal hiring in 2025 has shifted decisively toward skills-based recruiting, with GCs seeking candidates who combine deep legal expertise with business acumen, digital fluency, and adaptability.
Generational shifts exacerbate the talent crunch. Younger lawyers expect career development, purpose-driven work, and flexibility. High turnover and burnout among mid-level attorneys challenge leaders to think beyond compensation. Creating career pathing, upskilling opportunities, and meaningful engagement are now critical.
3. Responsible Adoption of Generative AI and Emerging Technologies
In 2025, AI adoption has accelerated, with legal departments piloting tools for contract lifecycle management, e-discovery, and even legal research. However, enthusiasm is tempered by risk.
The legal function is now central to enterprise-wide AI governance. The “human-in-the-loop” approach is emerging as the norm. Legal leaders are emphasizing cross-functional collaboration with IT and compliance teams to deploy AI responsibly, while setting policies for both internal use and vendor oversight.
Cybersecurity and data privacy remain intertwined concerns. With stricter disclosure rules and heightened third-party risk, legal departments are reinforcing security policies, conducting AI audits, and embedding privacy-by-design principles across workflows.
4. Expanding Regulatory Complexity Across Jurisdictions
Regulatory challenges in 2025 are more global, dynamic, and intertwined. From the SEC’s climate disclosure requirements to emerging AI liability frameworks in the EU and APAC, GCs are under pressure to stay ahead of multi-jurisdictional mandates.
The regulatory pace is especially intense in sectors like fintech, digital health, and AI-driven platforms.
Many in-house teams are building regulatory intelligence functions, combining legal insight with technology and analytics to monitor changes, evaluate impact, and maintain compliance. Internal collaboration with finance, operations, and sustainability teams is essential to align legal responses with business strategy.
5. Managing Outside Counsel Costs While Driving Value
The cost of outside counsel continues to rise in 2025, outpacing inflation and internal budgets. Law firm billing rates — especially for high-stakes litigation and regulatory work — are straining legal department finances.
GCs are countering this by redefining how they partner with firms. Several strategies gaining traction include:
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Value-based billing and AFAs (Alternative Fee Arrangements)
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Vendor consolidation to negotiate better rates
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Legal spend analytics to track efficiency and identify leakage
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“Outside counsel scorecards” to measure firm performance
Contact BarkerGilmore to Address In-House Legal Team Challenges
BarkerGilmore tracks and monitors industry trends to ensure in-house legal teams are prepared for the difficulties they face in 2025. Our experienced team of distinguished executive search consultants and former General Counsel and Chief Compliance Officers advise law departments on searching for and retaining world-class talent, building an efficient team, and finding solutions for managing outside counsel spending. Contact BarkerGilmore to discuss recruitment, leadership development, or law department consultations.
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