When it comes to enterprise-level technology, there’s a constant trend cycle that introduces new concepts as quickly as it forgets them. But there’s one hot topic that only seems to be growing in prominence and popularity: artificial intelligence. 

Every company, every service, every product seemingly incorporates AI into how it works and the value it brings customers. In the ‘80s, people thought the future would bring us flying cars and teleportation machines. Fast forward about 40 years. Turns out, it looks more like marketing teams leveraging predictive analytics to create campaigns and ChatGPT helping people write their grocery lists.

AI is no longer a futuristic concept. It’s here, transforming how organizations operate, innovate, and compete. Sales forecasting, customer support, and even web development. Nearly every vertical is racing to deploy AI tools that promise speed and efficiency. But as AI adoption accelerates, one critical voice is often missing at the decision-making table: Legal.

Legal teams are uniquely positioned to guide organizations through the complexities of AI adoption, ensuring innovation doesn’t come at the expense of compliance, ethics, or long-term strategy. With this in mind, we can see the dangers of Legal being brought in after the fact, when policies are already written, systems are already deployed, and risks are already exposed.

AI Is Moving Fast, But Should It Move Without Legal?

Organizations know they can’t afford to fall behind. We see this in the mad, public dash to both incorporate AI into their business model and find the right tools to help them work faster, make smarter decisions, and unlock new insights that can help them further drive success.

The irony of the AI gold rush is that as companies race ahead to seize opportunities, they become increasingly prone to overlooking potential risks along the way.

Legal teams offer a crucial balance to this complex problem. They’re not the brakes on innovation, but the guardrails that make it sustainable and compatible with growth. By involving Legal from the start, organizations can move quickly and responsibly, aligning with regulatory expectations, protecting customers, and safeguarding reputations. The best part? There’s AI-driven solutions out there that let Legal in on the efficiency fun, too. But we’ll get to that. 

The Stakes: Why AI Adoption Demands Legal Oversight

Unchecked AI adoption is ultimately a liability. We don’t mean to rain on the parade of teams who are embracing new technology, but AI’s free tools, ease of use, straightforward accessibility, and friendly interfaces sacrifice an internal locus of control. Without proper vetting and onboarding at the organizational level, risk and liability skyrocket, including: 

• Data privacy: Misuse of personal data can trigger violations under GDPR, CCPA, and other evolving privacy frameworks.
• Biased algorithms: Flawed training data can lead to discriminatory outcomes, exposing companies to lawsuits and reputational damage.
• Intellectual property concerns: AI-generated content raises thorny questions around copyright ownership and infringement.
• Contractual liability: Ambiguities in AI decision-making could clash with contractual obligations and service guarantees.

Forward-thinking companies are already leveraging their legal teams to establish AI governance policies that protect against these risks. In some cases, Legal has even spearheaded cross-functional task forces, ensuring compliance frameworks are embedded into AI projects from day one.

The Unique Role of Legal in Cross-Functional AI Strategy

AI adoption isn’t just a “tech problem.” It touches every department: Sales teams are eager to automate outreach. Procurement wants to negotiate smarter. Finance looks to optimize forecasting. Each use case introduces unique risks and compliance considerations.

Legal sits at the center of these important conversations. With visibility into contracts, regulatory trends, and enforcement precedents, it’s Legal who provides the long-term, big-picture perspective that other teams may overlook. They’re vigilant risk spotters who also just so happen to be strategic advisors.

This is exactly why we created LinkSquares. Now, Legal can be equipped with a turbo-charged CLM that transforms workflows and breaks through organizational silos. By automating contract analysis and surfacing key data, LinkSquares empowers Legal to move beyond manual review and play a more proactive, cross-functional role in shaping AI strategy.

What Happens When Legal Isn’t at the Table Early

The consequences of sidelining Legal are real and costly. Consider scenarios where companies rushed AI projects forward without legal oversight:

• Bias gone unchecked: A hiring algorithm that discriminated against candidates, resulting in lawsuits and regulatory investigations.
• IP infringement: Businesses unknowingly distributing AI-generated content that violated copyright law.
• Privacy violations: Customer trust eroded when personal data was mishandled by AI tools that lacked adequate compliance controls.

Each of these outcomes could have been avoided had they looped in Legal sooner. Conversely, early Legal involvement ensures risk is identified at the outset and compliance is embedded into the DNA of the project or tool implementation. Where they were once seen as a roadblock, Legal now becomes a goal accelerator, helping the business innovate confidently, with the right guardrails in place. 

By being proactive rather than reactive, organizations can turn legal oversight into a competitive advantage.

Legal + Tech: Driving Strategic Innovation, Not Just Risk Management

Legal’s role in AI adoption is not limited to risk mitigation. When empowered with the right technology, legal teams can actively drive innovation. They can lead the selection, auditing, and rollout of AI tools that align with company values and legal obligations.

AI-powered legal tech, like LinkSquares, is a prime example. By bringing visibility and control to enterprise contracts and data, LinkSquares allows legal teams to do more with less, building scalable governance frameworks that support growth while keeping risk in check.

Give Legal a Seat at the AI Table, From Day One

AI is already reshaping industries, but this progress is only sustainable if organizations adopt it responsibly. Legal shouldn’t be relegated to the final checkpoint before launch. Instead, they should be a central voice in shaping AI policies, evaluating risks, and aligning tools with enterprise values.

Legal teams also bring a unique longitudinal view. While sales or operations may focus on quarterly impact, Legal has to think in years or even decades:

• How will today’s AI decisions hold up under tomorrow’s regulations?
• What happens when case law catches up to emerging technologies?
• How do we ensure our contractual commitments still protect us as AI reshapes the competitive landscape?

These are crucial considerations. They’re what separate organizations that stumble into legal and reputational pitfalls from those that use AI as a durable competitive edge.

Finally, Legal can play an important cultural role. By championing transparency, ethical standards, and accountability, Legal ensures AI adoption strengthens the company’s brand, rather than undermining it. 

This is the future of Legal: not a department that slows things down, but a force multiplier for innovation. Our AI-driven CLM gives Legal the tools to lead confidently, shaping an AI-powered future where speed and responsibility coexist. So yes, AI will transform business, but it will be Legal that determines whether that transformation is trusted, sustainable, and fair. 

Get a firsthand look at LinkSquares’ AI capabilities, designed especially for Legal teams.