From the Zaven Rock and Roll interview series, Season 2
The legal industry is transforming, but AI is only one of four major disruptions reshaping everything. Olivier Chaduteau, PhD, CEO and Co-Founder of DayTwo, breaks down why the industry transformation extends far beyond artificial intelligence.
The New VUCA World
The concept of a VUCA world—volatility, uncertainty, complexity, and ambiguity—originated during World War II. Today’s legal professionals face a new VUCA era defined by four critical disruptions that extend far beyond technology alone.
Digital and AI: The Obvious Disruptor
Digital transformation and artificial intelligence represent the most visible disruption. However, focusing exclusively on technology misses the broader context of industry transformation. AI is one element within a constellation of forces reshaping legal practice.
Regulatory Explosion
Regulatory disruption has reached unprecedented scale. The OECD has identified over 1,000 AI-related policies and regulations globally, but the regulatory burden extends far beyond artificial intelligence. Environmental regulations, compliance requirements, data privacy frameworks, and sector-specific rules create cascading obligations for legal departments and law firms.
This regulatory complexity transforms both the economy and society, fundamentally altering the work of legal professionals who must navigate intersecting regulatory regimes across multiple jurisdictions.
Geopolitical Complexity
The geopolitical landscape has evolved from the relative simplicity of post-World War II bipolar competition into a multipolar world of competing interests. The Cold War’s clear divisions and the subsequent unipolar moment have given way to a fragmented global order.
China and the United States compete for influence while Europe seeks independent positioning. India, Russia, North Korea, and emerging African nations add layers of complexity. This fragmentation creates higher uncertainty and directly impacts corporate strategy and legal risk management. Companies must navigate conflicting regulatory requirements, trade restrictions, and political pressures across multiple jurisdictions simultaneously.
Societal Disruption and Reputation Risk
Consumer expectations and social values constitute a fourth major disruption. New generations bring different priorities regarding product offerings, services, and corporate behavior. These expectations function as soft regulation—not legally binding but commercially consequential.
Social media amplifies consumer power exponentially. Individual consumers can leverage platforms to broadcast corporate misconduct related to human rights, environmental practices, or ethical concerns. A single voice can mobilize thousands or millions to boycott products or damage brand reputation.
Reputation risk has become a primary concern for general counsel, in-house lawyers, and law firms. Legal departments must now assess not only regulatory compliance but also how corporate actions align with evolving social expectations and values.
Beyond Technology
These four disruptions—digital transformation, regulatory explosion, geopolitical complexity, and societal pressure—create the new paradigm for legal practice. The industry’s transformation reflects the convergence of these forces rather than any single technological advancement. Legal professionals must develop capabilities across all four domains to navigate this increasingly complex environment successfully.
