At an exclusive event of the Association of Corporate Counsel (ACC), chief legal officers (CLOs) from US-based companies addressed common obstacles and shared their insights and strategies to be more influential within the C-Suite.
According to ACC’s article, to help their organizations stay agile despite trade policy uncertainty and tariff challenges, CLOs:
- proactively advised on trade compliance and long-term strategic implications
- took advantage of trade zones to decrease customs costs, increase efficiency, and avail of tax benefits
- used the first sale valuation approach to reduce import taxes
- utilized contractual protective clauses, including cost-sharing and price adjustment mechanisms
ACC noted that attendees considered traditional advocacy routes – such as industry groups, lobbyists, and political relationships – ineffective in shaping or predicting policy shifts. Attendees shared that exporters saw political backlash impacting cross-border sales, particularly to Canada.
In its article on the ACC Docket, the association shared other insights from the CLOs’ gathering.
AI and cybersecurity
According to ACC, as AI adoption hastened, CLOs kept track of swiftly advancing deepfake technology and increasingly sophisticated cyber threats. ACC noted that legal and IT teams commonly shared oversight of AI systems but could take different governance approaches.
Attendees discussed insider threats such as foreign state actors infiltrating IT departments and generational differences in terms of comfort with AI, with some being too eager and others too cautious.
CLOs said AI could not replace human judgment in furnishing strategic legal counsel. Some CLOs thought existing internal controls could tackle AI risks, while others believed they needed dedicated AI use policies.
Attendees thought responsible use of generative AI could help with routine tasks like nondisclosure agreements. Companies automated contract routing and executive signoff processes and invested in proprietary AI-driven contract management systems to improve efficiency.
Professional development
According to ACC, attendees shared that:
- Strong leadership could help identify, keep, and nurture high performers
- Offering meaningful professional development to in-house counsel was still a challenge
- Integrating legal team members in business units promoted growth, engagement, and business alignment
- Companies still received enough job applications despite workforce shifts
- Job candidates still liked the work-life balance that in-house positions afforded
- External partnerships with mid-sized law firms and former large firm partners could help legal departments balance quality with cost efficiency
Ethical obligations
In the article, ACC emphasized that CLOs should safeguard corporate culture and strengthen the bond between the chief executive officer and the board of directors. Attendees noted the importance of:
- bringing in external counsel right away when dealing with potential conflicts of interest
- ensuring sound judgment at all levels, especially in the C-Suite where mistakes could jeopardize the company
- establishing “critical incident response” systems with app-based access to key protocols and contact information
- training employees to call attention to concerns promptly
- well-defined reporting lines in crisis teams
- promoting a culture of transparency, especially in a technologically driven landscape where anybody can be a whistleblower
- refraining from conflating CLOs’ organizational responsibilities with serving as the CEO’s personal legal advisor
Non-legal oversight
As CLOs expand their oversight beyond legal functions, ACC said CLOs should stay vigilant to privilege issues and perceive non-legal roles as opportunities to deepen trust and influence.
Attendees stressed the importance of understanding how business teams think and operate, asking questions to manage broader operational teams, and presenting a “legal wins” dashboard to display cost savings and strategic value.