How Chief Legal Officers are expanding their influence, navigating regulatory shifts, and driving corporate strategy in an evolving European landscape—insights from ACC's latest survey.
February, 2025 - London: As we step into 2025, the role of the Chief Legal Officer (CLO) continues to evolve. CLOs are expanding their influence beyond legal functions, tackling new regulatory challenges, and driving operational efficiency. Notably, for the first time, these trends are based on European data from the 2025 Association of Corporate Counsel (ACC) Chief Legal Officers Survey, providing valuable insights that highlight Europe’s unique regulatory and corporate landscapes
1. CLOs are expanding beyond legal.
Seventy-one percent of CLOs now oversee multiple corporate functions, including risk, compliance, privacy, and ethics, positioning them as key business leaders. In Europe, this shift is particularly pronounced due to stringent data protection regulations like GDPR and evolving ESG mandates that require CLOs to play a broader role in corporate governance.
2. Strategic decision-making is a core CLO responsibility.
CLOs are playing a significant role in corporate transactions, with 58% involved in mergers and acquisitions and overall business strategy. European CLOs are increasingly seen as essential advisors in cross-border transactions, navigating complex jurisdictional laws and evolving EU directives on corporate governance and antitrust.
3. Litigation and investigations are on the rise.
European legal departments are seeing a surge in disputes, with 58% (compared to 44% globally) of respondents noting a rise in internal investigations. In Europe, the rise in litigation is driven by stricter enforcement of regulatory compliance, including antitrust scrutiny, labor laws, and increasing class-action lawsuits, particularly in the technology and financial sectors.
4. CLOs are becoming key advisors to the CEO.
In Europe, the majority (73%) of CLOs report directly to the CEO, giving them a direct hand in shaping business decisions and strategies. European CLOs are increasingly relied upon for their expertise in navigating the evolving regulatory landscape, particularly in industries such as finance, pharmaceuticals, and technology, where compliance is a critical aspect of business operations. Among those not reporting to the CEO, 59% in Europe report to the CFO, significantly higher than the global average of 44%.
5. Operational efficiency is the top priority.
Forty-two percent of CLOs identify operational efficiency as their top strategic initiative, driven by cost-cutting mandates and increased workloads, a percentage 7% higher than the global average. European legal departments are focusing on streamlining workflows to manage the rising complexity of multinational compliance requirements and the impact of Brexit-related trade and employment law changes.
6. Technology adoption is accelerating
Sixty-two percent of CLOs plan to implement new legal technology in 2025, focusing on contract management (62%), workflow tools (38%), and document management (36%). European firms, in particular, are investing in AI-driven compliance tools to manage the increasing burden of data privacy regulations and automated risk assessment tools to enhance due diligence processes.
7. Staffing challenges are not a priority.
CLOs in Europe identified a lack of clarity in regulatory obligations as the primary barrier facing their legal departments (33 percent), surpassing understaffing, the top challenge faced by CLOs globally. While regulatory uncertainty is a significant concern globally (23 percent), it poses a more pronounced challenge for European legal teams, highlighting the unique complexities of the regulatory landscape within the region.
8. Regulatory pressure is growing.
Nineteen percent of organisations surveyed in Europe were subject to a regulatory investigation or enforcement action over the past year, similar to the global average of 23 percent. European CLOs are especially focused on new EU digital regulations, ESG compliance, and stricter financial disclosure requirements, leading to increased legal scrutiny and the need for robust compliance programs.
9. Business acumen is a priority for legal teams.
CLOs are prioritizing business acumen in their legal teams, with 59% identifying it as a key skill for development. European CLOs recognize the importance of legal professionals understanding financial metrics, operational efficiencies, and market dynamics, as companies navigate geopolitical shifts, inflation, and supply chain disruptions.
10. More work is being outsourced to law firms.
A significant 53% of CLOs mentioned reliance on outside counsel as a part of the past year practices. In Europe, law firms are being relied upon for specialized knowledge in areas such as GDPR enforcement, international trade laws, and AI governance, reflecting the increasing need for expert legal guidance in changing environments.
These trends highlight the expanding role of CLOs as strategic leaders. With increasing complexity in litigation, regulatory challenges, and operational demands, European CLOs are leveraging technology, expanding their teams, and strengthening their business acumen to drive corporate success in 2025 and beyond.
For more insights from the ACC Chief Legal Officers Survey, visit acc.com.
