CLOs: The C-Suite's New Architects of Corporate Resilience

WASHINGTON, DC – January 29, 2026 – The role of the Chief Legal Officer is undergoing a seismic shift, transforming from a traditional legal advisor into a primary architect of corporate strategy and resilience. A new report reveals that as businesses grapple with the dual forces of artificial intelligence and global uncertainty, it is the CLO who is increasingly at the helm, steering the organization through uncharted waters.

The 27th annual Chief Legal Officer Survey, released today by the Association of Corporate Counsel (ACC) and global business advisory firm FTI Consulting, confirms a profound evolution. Based on data from 1,049 CLOs across 43 countries, the findings paint a picture of a leader whose concerns have expanded far beyond the legal department to encompass the entire enterprise.

“This year’s CLO Survey confirms what we’re hearing from legal leaders around the world: the role of the chief legal officer is expanding faster than the resources available to support it,” said Jason L. Brown, president and CEO of ACC. “The findings reflect a clear shift toward the CLO as a central architect of enterprise resilience.”

The New C-Suite Linchpin

Perhaps the most telling sign of the CLO’s rising influence is their proximity to power. A record 84% of CLOs now report directly to the CEO, a notable increase from 79% last year. This structural change signifies a deeper integration into the core decision-making fabric of the company, a trend that has been accelerating for years. The semantic shift from "General Counsel" to "Chief Legal Officer" has proven to be more than symbolic, representing a move from a specialized advisor to a full-fledged executive partner.

This elevated status is mirrored by a dramatic change in focus. Where legal leaders once concentrated primarily on internal legal threats, their attention is now firmly fixed on external, macro-level risks. According to the survey, CLOs are far more concerned with barriers to growth and expansion (20%) than with traditional legal issues like litigation or data privacy (4% each). This alignment with market-facing goals demonstrates that the CLO’s outlook is now fully synchronized with the strategic objectives of the C-suite.

Navigating a World of AI and Uncertainty

The modern CLO is tasked with navigating a landscape defined by rapid technological change and geopolitical volatility. The survey highlights that 47% of CLOs say their CEOs now expect them to develop proficiency in technology and AI, a stark departure from the traditional emphasis on purely legal skills. This is not a future-state aspiration; 36% of legal departments are already in active deployment of Generative AI.

However, the rise of AI is not leading to a reduction in legal staff. A majority of CLOs (63%) expect headcount to remain stable, with the focus shifting to upskilling existing teams. The goal is to leverage AI for efficiency—automating routine tasks like contract review and legal research—to free up lawyers for higher-value strategic work.

“As organizations navigate rapid technological change, regulatory complexity and geopolitical volatility, CLOs are increasingly focused on AI fluency, strategic planning and accelerating technology adoption to respond quickly and effectively to evolving business priorities,” commented Sophie Ross, Global CEO of the Technology segment within FTI Consulting.

Simultaneously, geopolitical pressures are demanding more of the CLO's attention. Trade and tariffs emerged as a rapidly growing priority for 30% of respondents, while concerns over AI regulation saw the largest year-over-year increase at 21%. In response, legal leaders are developing sophisticated strategies, including proactive risk monitoring, scenario planning, and diversifying supply chains to insulate their organizations from global instability.

The Innovation Paradox: Doing More with Less

Despite these expanding responsibilities, CLOs are operating under significant financial pressure. A striking 35% of legal leaders cited chronic budget and resource constraints as their top barrier to success. This creates a challenging paradox: CLOs are expected to lead AI-driven transformation and manage enterprise-level risks, but often without the corresponding investment in tools and talent.

This resource crunch is forcing a new level of operational discipline. Many are turning to the growing field of Legal Operations (Legal Ops) to optimize workflows, implement data-driven performance metrics, and build a stronger business case for technology investment. The focus is on demonstrating a clear return on investment for any new expenditure, whether it's a contract management system or an AI-powered analytics tool.

Ironically, internal budget limitations can sometimes lead to an increased reliance on more expensive outside counsel for specialized expertise, particularly in navigating complex international regulations. This further pressures CLOs to master strategic vendor management to control costs while accessing necessary support.

Redefining the Legal Leader's Skillset

The forces reshaping the business world are forging a new kind of legal leader. The successful CLO of today and tomorrow must be a polymath, blending deep legal expertise with sharp business acumen, technological fluency, and a strategist’s foresight. The survey underscores that the most valuable legal leaders are those who can move beyond risk mitigation to actively drive and enable business growth.

This evolution requires a commitment to continuous learning and adaptation. As AI automates foundational legal work, the skills that will define a lawyer's value are changing. Critical thinking, complex problem-solving, and the ability to provide nuanced, context-aware advice are becoming more important than ever. The transformation from a reactive legal guardian to a proactive business architect is not just a trend but a fundamental redefinition of the role, demanding a new breed of leader who is as comfortable in a strategy session as they are in a courtroom.