Firmly into the 2nd quarter of the year, and already it has been a tumultuous one. Headlines change on an almost daily basis and it can be difficult to ascertain up from down.
We stepped into 2026, concerned about a new complex landscape dominated by AI adoption and it’s regulatory scrutiny, only to be hit by a more immediate blow –
Since the outbreak of the US-Israeli war with Iran, economic and commercial decision making has been surrounded by high uncertainty. Long term commitments are difficult to make, as demonstrated by the yo-yoing of the stock markets and energy prices.
And so, the challenges faced by UK General Counsel have been compounded, and short to medium term priorities have shifted, alongside business objectives. The key challenge of operational efficiency (doing more for less) is even greater than before, and this in a large part comes done to reevaluating legal team structures. So how can a general counsel approach this changing landscape, how does one evolve and progress, and where do strengths and stress points lie?
In this commentary, we tackle Talent Management, Operation Efficiency and AI.
Talent Management: As an executive search firm, it would be amiss not to mention Talent Management. Attracting and retaining the right talent is always a challenge to general counsel and one of the biggest costs to an in-house legal team.
Attraction: Sourcing the right talent, both skill and culture matched, largely comes down to industry knowledge, network and managing expectations of all parties involved. LinkedIn has it’s pros and cons, unfortunately, many candidates are not having a positive experience, leading to less relevant candidate applications and an air of distrust and frustration in the hiring process. More can and should be done.
Candidates value human connection. Job searching can be one of the most stressful periods in a person’s life and genuine relationship management increases the successful rate of ‘the right’ hires 10 fold.A generalist talent acquisition team may struggle to identify the often complex legal career pathways and legal qualification standards. Partnering with a specialist legal recruiter will save a General Counsel time, enhance the brand and reputation of the company and lead to long term success rates. It is, after all, in a recruiter’s best interest to build rapport with candidates and to accurately assess a candidate’s commercial and technical proficiency in a way a generalist HR team may struggle to do.
By ensuring an understanding of the legal hiring managers’ exact needs, legal terminology, and unique knowledge of the UK legal market, a legal recruiter is able to profile candidates who are a strong match, reducing wasted interview and hire time and better guaranteeing retention rates. Plus, you have the added benefit of the agency rebate and replacement period, thus mitigating risk of loss.
Interim Legal Support: Of course, in 2026, during a time of uncertainty, committing to hiring permanent staff or growing your legal function may not be possible from a budget and risk standpoint, and with the alternative cost of instructing external counsel, you may feel like your legal budget is in between a rock and a hard place. Thankfully, there is a third solution –
Interim legal support and fractional legal counsel has garnered A LOT more interest from general counsel. Temporarily boosting a legal team without costs such as permanent salaries, fixed term contracts, onboarding and other employment entitlements, impacting your legal budget. During a time of uncertainty and budget management, hiring an interim allows a new hire/role to be assessed without long term commitment. This maintains staffing flexibility and improves efficiency. Due to interim flexibility, the speed to hire is quick as interims tend to be available at short notice. At TAP Search, an interim’s employment is based largely on their reputation/references, as such, interim legal counsel tend to be invested in providing a high-quality service.
Retention: We would like to think that the shift to hybrid working has become more the norm over the past 6 years, however the challenge remains of how to nurture a team dynamic, connection and company culture. When it comes to retaining talent, especially in these environments, clear communication, regular check‑ins, promoting knowledge sharing and recognition methods help maintain a sense of belonging and cohesiveness across a legal team.
The legal team that succeeds will be the one that intentionally develops culture, supports wellbeing and invests in training staff and choosing the right technology that empowers legal teams.
Operational Efficiency and AI: Take advantage of AI, use it to rebuild legal operating models – automation is nothing new, AI is enhancing it, and knowing how to use it and treat it with care, should give your legal team time and money back. In this scenario, AI is certainly not a threat – it will allow time better spent elsewhere – such as building stronger relationships with internal stakeholders. Your approach to AI should be – ‘what can I leverage from this?’, as opposed to ‘what is it taking away?’ AI will never take away the need for internal counsel, organisations need the flexibility of human negotiation, tone, ‘out of the box’ problem solving, commerciality and relationship management – automation will give you and your legal team the time to better focus on these areas.
Of course, with any new adoption, there are risks, and like with many examples of progress, it may feel like taking two steps forward, one step back. Strengthening governance once again for this new wave, revisiting compliance practices and investing in evidence-tracking and reporting. As businesses learn to navigate this rapidly changing sphere of tech progress – what can general counsel do? In the short term, risk managing through building relationships with the Chief Information Officer and Compliance and Regulatory management is absolutely crucial. This will increase internal stakeholder accountability for ESG, corporate governance, and supply chain compliance.
In summary, there is no doubt about it, 2026 is and will be a challenging year, however with the right approach, flexibility and openness the General Counsel will evolve into a stronger strategic business partner and team leader.
For further information regarding UK Legal market trends, legal salary surveys, interim rate cards and our legal recruitment practice, please contact info@tapsearch.co.uk or call 02071275274.
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