CLOs evolve as strategic leaders in Europe

In a rapidly changing landscape marked by geopolitical instability, regulatory scrutiny, and technological advancements, legal leaders in Europe are transitioning into vital strategic roles as indicated by the recent findings from the Association of Corporate Counsel (ACC) and FTI Consulting. The 2026 Chief Legal Officers (CLO) Survey highlights a notable shift, with companies increasingly relying on CLOs to navigate complex challenges and drive business growth.

The survey, now in its 27th year, reflects the evolving nature of the CLO role, revealing that it extends far beyond traditional legal risk management. Jason L. Brown, President and CEO of ACC stated “This year’s European findings confirm that the CLO role is no longer confined to legal risk management. European CLOs are deeply embedded in business strategy, enterprise risk and ESG leadership at a time when organisations face unprecedented geopolitical and regulatory uncertainty.” These insights underline the critical position CLOs occupy as strategic partners within their organisations.

The data shows a substantial increase in the influence of European CLOs, with 82% now reporting directly to the CEO, which is a rise from 73% the previous year. Many European CLOs also engage more actively with their boards, with 75% attending board meetings regularly compared to just 56% in 2025. Furthermore, European CLOs distinguish themselves by taking the lead in several key areas, including ESG strategy where 48% play a co-leading role, and enterprise risk management at 83%.

Amidst these dynamics, there is a marked acceleration in the adoption of legal technologies. Nearly 62% of European legal departments plan to implement new technologies in the next year, and 77% expect to incorporate generative AI tools within two years. Sophie Ross, Global CEO of FTI Consulting’s Technology segment remarked “European CLOs are not waiting on the sidelines when it comes to AI. They are prioritising technological fluency and operational efficiency to meet rising regulatory demands and faster business cycles.” While there are concerns about job evolution rather than losses, CLOs are keen on upskilling teams to enhance their technological capabilities.

The survey also sheds light on increasingly complex regulatory challenges. European CLOs express heightened concerns over sanctions enforcement, with 34% identifying it as a top priority, compared to just 13% of their global counterparts. Similarly, 26% cite ESG enforcement as a significant issue. In this context, 44% of CLOs reported increasing their hiring of compliance specialists to build robust in-house expertise in navigating regulatory and geopolitical risks.

With geopolitical instability identified as the foremost risk by 28% of European CLOs—significantly higher than the global average—law departments are also grappling with tighter budget constraints and talent shortages. Despite these adversities, European CLOs remain committed to enhancing their strategic contributions, with two-thirds prioritising their roles as business partners alongside focusing on technology implementation and operational efficiency for 2026. The results of this survey indeed reflect a transformative phase in corporate decision-making where CLOs are pivotal players.