I often refer to the following general definition of innovation, as I believe it can be applied across many fields, including the legal sector—innovation is a pathway, typically measured over a ten-year timeframe, that involves adopting alternative models which subsequently become prevalent.
Innovation eventually impacts all sectors and companies, affecting everyone who supports a transforming business, including in-house counsels. Consequently, a competent in-house counsel must expand his/her professional skills to support the company’s innovative journey. In summary, legal innovation for in-house counsel is a dual-lane path encompassing: (a) new digital knowledge generated by tech-driven regulations, which requires understanding new legal categories and business models, and (b) new legal tech tools available to in-house counsel as a result of technological advancements.
Traditionally, a good lawyer was expected to be “business-oriented,” but with digital transformation and the advent of new technologies, the best lawyer is now one who is “technology-oriented”. Key challenges will include legally defining and mastering new subjects with sophisticated technological elements (e.g., blockchain) and clearly communicating these complex legal topics internally.
In this evolving environment, in-house counsel have access to numerous tech tools that, while beneficial, require additional efforts—such as data feeding, customization, and user training—to become fully effective. In our experience, tech tools are often used for standardizing documents and processes, managing activities and billing of external law firms, distributing workloads within the legal department, and facilitating collaboration with other internal departments. Additionally, legal design is an invaluable methodology for achieving clear and effective internal communication. The role of Legal Operations has emerged to address the skills and resources needed to manage new methodologies and tools, especially regarding data input, customization, and training.
Furthermore, technology has transformed interactions between in-house legal departments and law firms, as well as between in-house departments and regulatory authorities, by introducing innovative tools in both cases. Law firms are often the first to develop solutions for managing legal work and improving client communication. These solutions, with an entrepreneurial yet customized approach, can later be adapted by in-house legal departments. Moreover, many regulatory authorities have now developed innovative tools and channels for communication and surveillance based on new technologies, making proficiency in these tools an essential skill for successful in-house counsel.
In the coming years, the rise of digital expertise, continuous issuance of complex digital regulations, and the demand for professionals who can manage legal tech tools (both internally and with law firms and regulators) will create a need for “tech-oriented” in-house counsels. These professionals will be expected to engage effectively with internal technology teams and collaborate with other departments involved in innovation. In a technology-driven legislative and business environment, the in-house counsel of the future will likely be called upon not only to identify legal risks but also to chart “innovative legal paths.”
