May 15, 2025

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Strategic Insights

Your GC is in an AI Arms Race. Have you Equipped Her with the Tools to Win?

Khaled Shivji

The new battleground for corporate dominance is being fought with AI algorithms

Your legal department faces an inflection point. Companies whose legal teams master AI today will write its rules for the next decade.

For years, the legal profession, a bastion of precedent-bound rigour and risk-aversion watched the rise of FinTech, Web3, blockchain, cryptocurrencies and NFTs from a safe distance. Then the pandemic upended the "This is how we've always done it" model calling time on legacy, centralised infrastructure and paper-based administration.

And today? A landmark 2025 study from Harvard Law’s Center on the Legal Profession didn’t just whisper change; it screamed disruption. Researchers found that sophisticated AI tools could dissect complex legal tasks, like reviewing non-disclosure agreements for specific risks, reducing work that once took experienced lawyers 16 painstaking hours down to a mere 3 to 4 minutes. That’s not just an efficiency gain; it’s a paradigm shift, a near-300-fold acceleration.

Imagine that power scaled across your entire legal workflow—contract review, due diligence, compliance checks, litigation support. The competitive advantage isn’t incremental; it’s exponential.

This is not solely about speed or trimming the fat from outside counsel spend (though the CFO will certainly applaud that). This is about strategic firepower. GCs arming their teams with the right AI aren’t just processing documents faster; they’re unearthing insights, predicting risks, and informing business strategy with a clarity previously unimaginable.

According to a recent McKinsey Global Survey, companies leading in AI adoption report significantly improved decision-making and revenue uplift, not just cost savings. When your legal team can model regulatory changes in real-time or identify contractual risks across thousands of agreements instantaneously, they transform from a cost centre into a strategic offensive unit.

The “wait and see” approach is a luxury the current pace of AI development simply can't afford.

What about the GCs still debating trial programmes or stuck in procurement limbo, perhaps citing the high upfront costs of AI implementation (a common concern, as noted in Gartner studies).

They’re not just missing out on efficiency; they’re actively accruing risk. In a world where your competitor’s AI-augmented legal team can close deals faster, navigate regulatory minefields with greater precision, and build more defensible IP portfolios.

Standing still paradoxically offers a fast-track to obsolescence.

At this stage, a GC and her team need to be asking questions about, and providing counsel regarding ethics, compliance and risk management. This isn't a domain restricted to AI evangelists like myself; it requires inputs from cross-sections of the legal community and the wider business community.

There’s another problem with companies who talk the talk about using AI but make little or no operational adjustments. AI tools introduced within the private sector can introduce new forms of bias if not carefully selected and monitored, a point heavily emphasised by researchers at Stanford’s Institute for Human-Centered AI.

Or the “shadow AI” phenomenon, where well-meaning employees adopt unsanctioned AI tools, inadvertently creating massive data security vulnerabilities – a scenario that keeps CISOs and GCs up at night, and one that Gartner’s research highlights as a growing corporate menace

A proactive, AI-savvy GC isn’t just an AI user; they are the architect of the company’s AI governance, the vanguard against these new, algorithmically-driven threats.

So, What’s the GC’s Next Move in This AI Arms Race?

This isn’t about replacing human judgment with code. It’s about augmenting it, creating a legal function that’s not just reactive but predictive, not just a guardian but a growth engine. Here’s the unvarnished truth for your executive team:

  1. Audit Your Arsenal, Ruthlessly: What’s your organisation’s tech stack really capable of? More importantly, what are the critical gaps AI could fill right now to deliver strategic wins, not just marginal efficiencies? Are there new products, or in-built AI or productivity services which your organisation just isn’t utilising? This isn’t an IT question; it’s a core business strategy question.

  2. Declare War on AI Illiteracy: Your legal team doesn’t need to code, but they must understand AI’s capabilities, limitations, and ethical implications. This means targeted training, not just another webinar. Think AI bootcamps focused on legal use cases.

  3. Pilot with Purpose, Scale with Speed: Identify one high-impact area (e.g., contract lifecycle management, regulatory compliance for a new market entry). Launch a focused AI pilot. Measure relentlessly. Benchmark it If it works, don’t wait a year to scale. The market won’t.

4. Rewrite the Risk Register – With AI in Mind: The old risks still exist, but AI introduces new vectors – from biased algorithms in hiring (a legitimate and well-documented concern) through to IP leakage via unsanctioned generative AI platforms. Your GC needs to be ahead of this, crafting policies that enable innovation while mitigating these novel threats.

The Future is Forged, Not Found

The transition to an AI-powered legal function isn’t just inevitable; it’s the new baseline for competitive survival and market leadership. The GCs who embrace this, who become fluent in the language of algorithms, AI ethics, and prompting will redefine the strategic value of legal departments in the enterprise. This requires the C-suite to embed legal transformation within the group-wide strategy. Without which, your GC will be forced to battle with sticks and stones.

Challenge us to map your AI legal transformation in 30 days.

Is your legal department truly AI-ready, or just AI-aware? The difference is your company’s future. At SAIL we specialise in transforming legal teams into AI-powered strategic assets.

We help GCs navigate the hype, implement with precision, and build a legal function that doesn’t just mitigate risk—they drive advantage!

Contact us at khaled@sail.legal or book a free consultation.

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