Legal-Week_Big-Four_KPMG

A new survey from KPMG Law US finds that corporate legal departments are struggling with high-volume contract work and are often not seen as critical partners by other business leaders, pointing to significant operational and perception challenges.

Why it matters: The gap between the legal department's workload and its perceived value can create business risks. With most non-legal executives viewing legal as a cost center rather than a strategic enabler, companies may be missing opportunities to use contracts as tools for driving revenue and growth.

By the numbers: The survey of 50 U.S. C-suite executives reveals a disconnect in legal operations.

  • Only 30% of non-legal U.S. executives believe their legal team is viewed as a critical partner.
  • Just 22% of organizations have a single source of truth with established governance to manage their contract inventory.
  • Regulatory challenges (86%) and complex governance structures (60%) are the top contract management pain points.
  • 70% of executives say GenAI helps draft and review contracts more quickly, showing high potential for tech adoption.
The big picture: The findings suggest in-house legal teams are facing a "perfect storm of rising contract volumes, increasing velocity, and limited internal bandwidth," according to Jeff Catanzaro, a principal in Global Legal Business Services at KPMG US. This pressure is forcing a shift toward legal managed services and technology to improve efficiency and strategic impact.

What they're saying: "Contracts are more than legal instruments—they’re operational assets that shape how organizations manage risk, revenue, and relationships," said Tom Greenaway, Principal at KPMG Law US LLC. He added that for leaders across finance, operations, and procurement, "improving contract management is a strategic lever for driving revenue and growth.”

Between the lines: The survey, conducted by KPMG and Forbes Insights, focused on organizations with at least $500 million in revenue. The results are being used by KPMG to frame the value proposition for its legal managed services offerings, which aim to address the inefficiencies identified in the report.

The KPMG US Legal Services Report can be viewed here.

SOURCE: KPMG Law US

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