Inflation isn’t only a headline anymore — it’s sitting on the desk in your boardroom, reshaping budgets, and quietly wrecking these long-term offers all of us thought had been set in stone. For in-house authorized groups, this isn’t simply background noise. It’s a storm we have to navigate — and quick.
The challenges are in all places. CFOs are laser-focused on flexibility. Gross sales groups need hermetic contracts, ideally yesterday. And authorized? We’re caught within the center, attempting to steadiness danger, compliance, and the competing priorities of the enterprise. Inflation has put an uncomfortable highlight on our processes, nevertheless it’s additionally an opportunity for authorized groups to step up as leaders.
Contracts Are Getting Difficult
Inflation has turned contracts into dwelling, respiratory paperwork. Gone are the times when you can signal a multiyear settlement and overlook about it. Now, every little thing is being revisited. Margins are shrinking, prices are rising, and nobody desires to be locked into inflexible phrases.
I lately spoke with a authorized group that received forward of this by constructing inflation triggers instantly into their agreements. They added cost-plus pricing fashions and capped escalators tied to market knowledge. It wasn’t a flashy change, nevertheless it gave them sufficient flexibility to renegotiate with distributors with out tanking relationships — or their budgets. These are the sorts of proactive strikes authorized groups must champion.
In case your contracts aren’t adaptable, you’re not simply risking enterprise friction — you’re leaving your organization weak to pricey disputes. And with instruments like contract administration platforms, it’s simpler than ever to investigate phrases, monitor renewal dates, and pinpoint the place you would possibly want to barter.
Compliance Challenges Are Heating Up
Inflation isn’t only a monetary pressure — it’s additionally a regulatory danger. Worth will increase tied to inflation can increase eyebrows, particularly in sectors already beneath scrutiny for antitrust or unfair practices. Regulators are being attentive to how firms regulate their pricing fashions, and authorized groups should be prepared.
That is the place having a transparent, documented rationale for pricing choices could make all of the distinction. One GC I do know began retaining detailed notes on each value adjustment tied to inflation, backed by market knowledge. When regulators began asking questions, the corporate was prepared with a stable protection.
For those who don’t have a system in place to trace and justify these modifications, you’re flying blind — and that’s not a place you need to be in when a regulator comes knocking.
Authorized Groups Are Anticipated To Do Extra With Much less
Inflation isn’t simply reshaping enterprise technique — it’s hitting budgets, too. Authorized groups aren’t any exception. We’re being requested to ship the identical high-quality work with fewer sources. That’s why effectivity isn’t only a buzzword anymore; it’s a survival technique.
That is the place investing in the suitable instruments could make a distinction. Authorized expertise — like e-billing techniques, compliance trackers, or AI-powered contract overview instruments — can release time and assist your group concentrate on strategic work as an alternative of getting slowed down within the weeds. For instance, I’ve seen groups use automated bill techniques to flag errors and save hundreds in duplicate prices. One other group slashed contract overview occasions by utilizing AI to investigate phrases and flag potential points.
These aren’t simply cost-saving measures; they’re alternatives to point out how authorized can deliver actual worth to the enterprise.
What’s Your Subsequent Transfer?
Inflation isn’t going away, and there’s no magic answer to make it simpler. However authorized groups are in a novel place to guide the cost, serving to their firms keep versatile, compliant, and resilient within the face of financial uncertainty.
So, how’s inflation impacting your group? Are you renegotiating contracts, shoring up compliance processes, or discovering artistic methods to do extra with much less? I’d love to listen to what’s working for you — or what challenges are retaining you up at night time. Let’s discuss how we will sort out this collectively.
Olga V. Mack is a Fellow at CodeX, The Stanford Heart for Authorized Informatics, and a Generative AI Editor at legislation.MIT. Olga embraces authorized innovation and had devoted her profession to enhancing and shaping the way forward for legislation. She is satisfied that the authorized career will emerge even stronger, extra resilient, and extra inclusive than earlier than by embracing expertise. Olga can be an award-winning common counsel, operations skilled, startup advisor, public speaker, adjunct professor, and entrepreneur. She authored Get on Board: Incomes Your Ticket to a Company Board Seat, Fundamentals of Sensible Contract Safety, and Blockchain Worth: Remodeling Enterprise Fashions, Society, and Communities. She is engaged on three books: Visible IQ for Attorneys (ABA 2024), The Rise of Product Attorneys: An Analytical Framework to Systematically Advise Your Purchasers All through the Product Lifecycle (Globe Legislation and Enterprise 2024), and Authorized Operations within the Age of AI and Knowledge (Globe Legislation and Enterprise 2024). You may observe Olga on LinkedIn and Twitter @olgavmack.
