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As businesses strive to remain competitive, the demand for agile, tech-savvy legal departments is increasing. However, many in-house lawyers feel their organisations are not investing enough in innovation. A January 2025 UUÂãÁÄÖ±²¥ survey revealed that only 13% of in-house lawyers believe their legal department is fast or very fast at implementing new technology, particularly AI. This blog explores key areas where in-house legal leaders can drive innovation to enhance efficiency and align with business goals.

1. Embracing technology for efficiency

One of the most significant areas for innovation in legal departments is the adoption of technology to streamline processes. Many legal teams are burdened with outdated systems that slow down their ability to respond to business needs. According to the UUÂãÁÄÖ±²¥ survey, 82% of in-house lawyers feel their department is adequate, slow, or very slow at implementing new technology.

A Group General Counsel at an asset-based lender in Bristol highlights the importance of using technology to handle labour-intensive but low-value tasks. "Innovating your workflow can do a significant amount of the heavy lifting, allowing lawyers to focus on the strategy and advice where it is really needed," she says. By leveraging AI and other technologies, legal departments can automate routine tasks such as document reviews and data subject access requests, freeing up time for more strategic work.

2. Responding to change with agility

In a rapidly changing business landscape, the ability to adapt quickly is crucial. However, two-thirds (65%) of in-house legal professionals report that their department is adequate, slow, or very slow at responding to change. This sluggishness can hinder a company's ability to seize new opportunities and mitigate risks.

Nick West, Chief Strategy Officer at Mishcon de Reya, emphasises the need for legal departments to align their innovation activities with the organisation's business goals. "One legal department's priority might be trying to drive productivity improvements into a high-volume contracting process, whilst another's might be creating a better 'legal front door' due to an overwhelming number of requests," he explains. By focusing on areas that directly impact business objectives, legal teams can become more agile and responsive.

3. Harnessing data and analytics

Data and analytics are powerful tools that can drive decision-making and improve efficiency. Yet, three-quarters (75%) of in-house legal professionals feel their department is inadequate, slow, or very slow at utilising data and analytics. By harnessing these tools, legal teams can gain insights into their operations, identify areas for improvement, and make more informed decisions.

Hélder Santos, Head of Legal Tech and Innovation at Bird and Bird, believes that enhancing client experience through personalised services and efficient communication builds trust. "Technology streamlines workflows and adds value," he notes. By leveraging data and analytics, legal departments can better understand client needs and tailor their services accordingly.

4. Streamlining legal research and drafting

Legal research and drafting are core functions of any legal department, yet many teams struggle with inefficiencies in these areas. The UUÂãÁÄÖ±²¥ survey found that almost two-thirds (61%) of in-house lawyers rate their department as adequate, slow, or very slow at conducting legal research. Similarly, 39% report challenges with drafting and reviewing legal documents.

Tony Randle, Partner, Client Tech & Service Improvement at Shoosmiths, advises in-house teams to prioritise areas that deliver immediate value. "Mapping out the areas that are going to have the biggest positive impact across the legal team is the first step," he says. By integrating legal tech, including AI, into common workflows, legal departments can significantly enhance their research and drafting capabilities.

5. Enhancing client experience

In-house legal teams play a crucial role in shaping the client experience. By focusing on personalised services and efficient communication, legal departments can build trust and strengthen client relationships. According to Santos, the biggest areas for innovation are client experience, workflow optimisation, and legal drafting.

By adopting technology that streamlines workflows and enhances communication, legal teams can deliver a more seamless and responsive service to their clients. This not only improves client satisfaction but also positions the legal department as a strategic partner within the organisation.

Conclusion: A strategic approach to innovation

Investing in innovation for its own sake is not enough. In-house legal leaders must pinpoint areas where change will deliver the greatest commercial reward. By embracing technology, responding to change with agility, harnessing data and analytics, streamlining legal research and drafting, and enhancing client experience, legal departments can transform their operations and align more closely with business goals.

Rounding things up, investing in innovation for innovation's sake – foolish! Pinpointing areas of your business where change will deliver the biggest commercial reward – a game-changer! By taking a strategic approach to innovation, in-house legal teams can become more efficient, responsive, and valuable partners to their organisations.

Read the full report here.