EY partners highlight the growing role of legal teams
Legal departments are taking on a more strategic role in transactions, according to EY’s Pulse of the Legal Function 2026 report. Technology, regulatory complexity and geopolitical uncertainty are reshaping their work, while General Counsel are becoming increasingly involved in business decisions.
Legal teams move closer to the business
The report finds that 49% of companies have made significant changes to their legal departments, while 71% say the General Counsel has become more influential and closer to the CEO.
Francisco Silván, M&A partner at EY, highlights this shift: “Legal teams are moving from simply validating transactions to helping design them from the outset”. Their role extends beyond structuring deals and anticipating risks to ensuring value is realised after closing.
Due diligence faces growing complexity
Regulation (85%), geopolitics (76%) and technology, including AI (68%), are among the main challenges identified by respondents.
Silván points to the expansion of due diligence: “ESG, compliance, cybersecurity, data protection and artificial intelligence are increasingly part of the analysis”. Commercial due diligence is also gaining importance in assessing business prospects and potential risks.
Limited resources remain an obstacle, with 41% of respondents identifying a lack of funding or resources as a barrier to transformation. Silván adds that in-house teams play a key role in coordinating external advisers and facilitating timely decisions.
Private equity demands a broader skill set
For Javier Bustillo, Private Equity partner at EY, general counsel are increasingly involved throughout the investment cycle, from acquisitions and portfolio management to exits.
“A strong general counsel can shorten due diligence, avoid surprises and improve deal terms”, he explains. He highlights the importance of financial knowledge, corporate governance, regulatory awareness and technology skills, adding that “funds want lawyers who understand the business and speak the language of investors”.
In the picture below: Javier Bustillo and Francisco Silván
AI supports efficiency, but not legal judgement
Automation of repetitive tasks (78%) and time savings (71%) are the main expected benefits of generative AI. However, adoption remains uneven: 48% of respondents are exploring the technology or are in its initial stages, while 24% have integrated solutions at scale.
Silván sees opportunities in document review and contract analysis, but stresses that “the lawyer’s judgement, critical analysis and responsibility remain essential”. Bustillo shares a similar view on the technology’s limits: “AI accelerates the work, but the signature remains that of a lawyer”.
Geopolitics reshapes investment protection
Bustillo also highlights the growing impact of foreign investment rules, sanctions, competition law and tariffs on transactions. “These factors are extending timetables and increasing the use of conditions precedent, deferred payments and specific indemnities”, he says.
The report points to a legal function in transition, with a broader remit and a closer connection to strategic business decisions.
