Singapore – With the emergence of artificial intelligence in legal operations, the latest report by FTI Consulting and the Association of Corporate Counsel Singapore revealed that more than half of in-house legal counsels in Asia are lacking guidance on the adoption of artificial intelligence in their operations.
According to the report, 65% of the respondents expressed that their companies have not offered adequate guidance for utilising generative AI, with 45% noting the absence of specific third-party risk assessments to address security and operational risks related to new technologies.
These findings suggest an area of opportunity for in-house legal counsel, as companies and legal advisors expect them to understand and learn about these new technologies.
Highlights of the report further indicated that approximately 64% of the respondents agreed that their company is not sufficiently proactive in reducing cybersecurity risks. Around 61% of respondents in Asia also expressed “very confident” sentiments in terms of their company’s ability to prepare for emerging legal risks.
On the other hand, only 47% feel equipped to effectively address legal incidents that have occurred.
In addition, over half (58%) have acknowledged their company’s preparation for operational disruptions due to geopolitical tensions.
A significant 56% of them cited data protection as the primary issue expected to have regulatory implications for their company within the next 12 months. Around 51% also noted financial misconduct as the most common cause for internal investigations within their organisation.
Commenting on the report, Anna Bleazard, Asia head of financial crime compliance and Southeast Asia co-leader of investigations at FTI Consulting, said, “Conversations with general counsel uncovered a clear sense that the scope of their role was broadening. No longer simply experts in matters of law, in-house legal counsel have become vital business advisors, taking the lead in helping companies understand an increasingly complex macroeconomic, regulatory, and geopolitical environment.”
“These are all adding pressure to the role, as legal teams need to get up to speed quickly in order to manage the potential risks,” she added.
Gino Bello, Southeast Asia head of technology and Asia co-leader of investigations at FTI Consulting, also shared, “Today’s senior legal professionals in Asia face a set of unique challenges given the diverse legal, cultural, and business landscapes across the region. They are navigating complex challenges while ensuring corporate success. In particular, now we see legal leaders in Asia have a ‘seat at the table,’ and they play a pivotal role in leading the way forward.”
Meanwhile, David Sullivan, president at ACC Singapore and legal director for APAC at WPP, remarked, “Looking after a diverse region like Asia requires general counsel and senior in-house counsel to understand the complex risk landscape, while fostering a growth mindset. A ‘New Era of Legal Advisor: 2024 In-House Counsel – Perspectives from Asia’ provides valuable insight on where legal officers in Asia are facing the biggest headwinds and the risks their peers are prioritising.”
