Chief legal officers at European companies are increasingly expanding their influence beyond legal matters, according to a new Association of Corporate Counsel (ACC) study.

The ACC identified 10 trends shaping the CLO landscape in the region based on data from the 2025 ACC Chief Legal Officers Survey, which highlighted how legal heads are expected to provide more than just legal advice. 

As many as 71% of European CLOs said they now oversee multiple corporate functions, including risk, compliance, privacy and ethics. Compliance issues such as GDPR and ESG mean CLOs play a much greater role in overseeing corporate governance in Europe, the ACC said.

CLOs are also expected to contribute to strategic decision-making, with 58% of respondents saying they are involved in M&A matters and overall business strategy. This is because of the complex nature of cross-border transactions, which often run up against evolving EU directives on corporate governance and competition law, the ACC said.

The majority of European CLOs are also increasingly seen as key advisors to the business, with 73% of respondents saying they report directly to the CEO. 

For those not reporting directly to the CEO, more than half (59%) respond to the CFO – much higher than the global average (44%). Some 59% of CLOs said they are prioritising business skills development in their legal teams to help better navigate the current operating environment.

Other trends impacting European CLOs are a rise in litigation and investigations. Some 58% of European CLOs have noted an increase in internal investigations, compared to 44% globally. 

Respondents said the rise in litigation is being driven by stricter regulatory compliance enforcement, including antitrust scrutiny, employment laws and growing class-actions lawsuits in the the tech and financial sectors. Almost a fifth of respondents in the region (19%) said they were subject to regulatory investigations or enforcement actions over the past year, underscoring this growing regulatory pressure.

Digitisation and operational efficiency priorities mean tech adoption is accelerating, with 62% of European CLOs planning to implement new legal tech in 2025 in areas such as contract management (62%), workflow tools (38%) and document management (36%). 

Some CLOs also said they are investing in AI-powered compliance tools to better manage data privacy rules and automate risk management. Some 42% of CLOs said that operational efficiency is their top strategic initiative, driven by cost-cutting mandates and growing workloads.

European CLOs also said they were outsourcing more work to law firms, with 53% of respondents relying on outside counsel in areas such as GDPR enforcement, international trade laws and AI governance.