Only 7% of companies achieve full compliance

As businesses accelerate their global expansion in 2026, compliance fails to keep pace. In fact, only 7% of organizations report full compliance across their global entities, according to a new study by CSC, a leading provider of global business administration and compliance solutions. The study, which included responses from 350 general counsel (GCs) and senior legal professionals across Europe, North America, and Asia Pacific, sheds light on the challenges faced as firms navigate international expansion and increasing regulatory demands.

Most organizations reported only partial compliance; over half (53%) estimated they are 50–75% compliant, while a further 35% placed themselves between 76%–99%. This starkly illustrates the struggle for businesses, with only 7% managing to achieve full compliance across all global entities. The pressure to adapt to various legal landscapes is compounded by concerns about new regulatory frameworks, specifically beneficial ownership rules, which were cited by 47% of GCs as the biggest risk to their legal operations in 2026.

GCs also expressed a lack of confidence in their ability to meet evolving data security requirements. More than two in five (44%) admitted they feel unprepared for compliance across jurisdictions. Seventeen per cent identified challenges in delivering consistent service globally, highlighting the complexities of navigating multiple regulatory environments. Ian McConnel, chief legal officer at CSC, commented that “the pace of regulatory change is accelerating globally, with new frameworks emerging across multiple jurisdictions that increasingly overlap.”

To tackle these significant challenges, legal teams are focusing on upgrading technology and automation in 2026, along with consolidating service providers for a more cohesive approach to managing global entities. Many organizations are also turning to artificial intelligence (AI) to support compliance and entity management, with 35% already utilising it and an additional 26% piloting AI tools. However, concerns remain regarding the accuracy and reliability of insights derived from these technologies. The slow adoption of AI is attributed to issues such as the need for high-quality data, dependence on legacy systems, and ongoing regulatory uncertainties.

The increasing complexity of regulatory compliance has led organizations to rely heavily on external partners. With more than four-in-five (83%) respondents using multiple corporate service providers to navigate varying country requirements, managing global operations across fragmented networks proves increasingly challenging. Thijs van Ingen, global market leader at CSC, noted that “for a long time, legal and compliance teams have focused on technology-driven transformation, but there is growing recognition that technology alone is not enough.” He stressed the importance of improving data quality and establishing a single source of truth to balance in-house capabilities with external partnerships effectively.

In the light of these evolving challenges, companies are beginning to explore more integrated approaches to managing global regulatory obligations. CSC offers support for global entity management and compliance, combining local expertise with centralised data and advanced technology to provide legal teams with a unified and reliable view of their entities. This strategy assists organisations in maintaining control over compliance risks while supporting their growth trajectory.

To further explore the findings, the complete report, General Counsel Barometer 2026: From Complexity to Control, is available for download at the CSC website.