Legal Demand in Turbulent Times: How In-House Teams Are Adapting to a Shifting Global Economy

Introduction – The Pressure is Rising

From inflation and rising interest rates to geopolitical tensions and shifting trade policies, today’s global economy is in a state of instability, and these disruptions are reshaping the demands placed on legal teams.

Across regions and industries, legal teams are navigating the ripple effects of economic volatility. From hiring slowdowns to increased regulatory exposure and shifting commercial objectives, the impact is being felt in how legal work is delivered, structured, and prioritised. This article brings together what we’re hearing from clients and colleagues globally and provides a snapshot of how in-house teams are adapting to economic volatility, and why flexible legal talent is becoming a core part of the solution.

Economic Headwinds Are Reshaping Legal Priorities

The economic signals may vary by region, but one theme is consistent across markets: uncertainty. From the slowdown in mergers and acquisitions due to high interest rates to the growing complexity of cross-border regulation, legal teams are being pulled in new directions at speed.

Inflation and cautious bank policies are leading businesses to pause major investments, renegotiate contracts, and tighten legal budgets. Many in-house teams are seeing hiring freezes or scaled-back recruitment plans, and while the cost of employment remains high, companies are reconsidering how they structure their legal capacity.

Geopolitical volatility is adding to the pressure. Tensions in the Middle East and tariff shifts in the United States and Europe are driving urgent contract checks, planning, and compliance work. Government investigations are rising, creating more demand for regulatory support.

Sector by sector, the story continues to evolve. In energy, we’re seeing teams cautiously approach permanent hires while they wait to see how the market shifts. In tech, demand is growing for product lawyers and agile legal teams that can support rapid pivots. Employment law remains a high-demand area due to ongoing restructures and redundancies. Meanwhile, ESG-related roles have slowed down, with the exception of renewables, where activity remains steady.

The Work Is Changing Fast

What is emerging is not just a heavier legal workload, but a more unpredictable and fragmented one. The challenge for legal teams is no longer just about handling volume. It is about preparing for the unexpected and responding with speed and precision.

Legal leaders are seeing a clear rise in project-based work. Some matters come in fast and unplanned, such as urgent contract triage tied to trade disruptions or sudden regulatory shifts. Others arise from longer-running investigations, often driven by non-U.S. regulators, where internal teams are not resourced to manage cross-border complexity at scale.

Responding to external legal requests is another growing pressure point. As regulatory scrutiny increases, legal teams are looking for support to manage third-party document reviews efficiently and without pulling resources from business-critical work.

Contract review and negotiation are also getting more focus. Teams are asking for help to manage overflow and bring structure to what has become an unpredictable flow of new agreements, amendments, and risk reviews. For many, the post-signature phase is where risk sits, and where internal bandwidth is thinnest.

There is also growing interest in where technology and AI can provide relief. Smaller teams are experimenting with automation to extend capacity or pilot tools that streamline workflows. Technology can transform how legal work is delivered, but it still takes experienced legal talent to respond with focus, speed, and sound judgment.

Planning based on a fixed headcount or a rigid team structure is becoming less workable. What legal teams need is access to scalable support that reflects the pace and unpredictability of the work. For many, that means moving toward modular resourcing strategies and bringing in the right capability at the right time.

Strategic Spending Is Driving Flexible Resourcing

The pressure on legal budgets is not happening in isolation. It is the result of sustained and widespread economic volatility. Interest rates remain high in key markets, slowing M&A activity and raising the cost of borrowing. Inflation continues to erode margins, forcing CFOs to scrutinise every function, including legal. And geopolitical uncertainty, from trade disputes to regional conflict, is disrupting supply chains, contracts, and long-term planning.

Against this backdrop, legal leaders are being asked to balance more risk with fewer resources. There is less room for open-ended engagements or headcount increases. The response is not simply to spend less, but to spend better.

Many organisations are moving away from large-scale resourcing decisions and toward modular, flexible options that offer faster returns and tighter control. There is growing demand for short-term secondments, project-based engagements, and specialist legal support that can be switched on and off as needed.

This trend is especially visible in sectors like energy, where market instability makes long-term hiring risky. It is also evident in tech, where rapid pivots require legal expertise on short notice, and in financial services, where regulatory pressure is rising, but budgets are tight.

What we are seeing is a shift from reactive cost-cutting to proactive, strategic resourcing. Legal teams are starting to think like business units. They are asking sharper questions, demanding clearer value, and making decisions that balance risk, efficiency, and resilience.

Flex Talent: A Core Part of the Solution

The shift to flexible legal talent is part of a broader change in how in-house teams are structured. Legal leaders are building frameworks that can flex with demand, absorb pressure points, and respond to strategic priorities without delay.

Short-term secondments are helping cover paused roles or interim needs. Employment and product lawyers are being brought in to meet specialised demand. Teams working under regulatory pressure are using flexible support to handle time-sensitive workloads that would otherwise stall progress.

Beyond capacity, flex talent brings a different kind of value. It gives teams the ability to test new approaches, pilot legal processes, or temporarily build out functions like contract triage or governance without being locked in. It is also allowing smaller teams to expand their capabilities without changing their core structure.

Resilience Is a Team Sport

Legal teams are facing constant shifts in demand, risk, and resources. Those navigating it successfully are building flexibility into the way they operate.

The global economy remains uncertain, and that uncertainty is not going away. There will always be a new challenge to respond to, whether it is a change in inflation, a shift in tariffs, or political upheaval in a key market. Legal departments cannot predict what is coming, but they can prepare for it.

That preparation starts with structure. Legal teams are creating systems that support faster decisions, more focused execution, and tighter control over legal spending.

Flexible legal talent is making that possible. It brings the capacity to take on urgent work, the expertise to navigate unfamiliar issues, and the speed to act fast. Whether the task is short-term, specialist, or high-volume, flexible lawyers are helping legal teams stay ready for anything.