Legal matters: crucial in the face of regulation

Author: Sébatien Lambotte - Paperjam

14/07/2025

Artificial intelligence

As regulatory frameworks continue to strengthen, legal departments are more in demand than ever. Their challenges? Anticipate risks, secure business operations, and support growth beyond compliance constraints. To do this, they must work closely with company leadership to raise awareness and provide guidance.

In recent years, the legal and regulatory environment in Luxembourg, and more broadly in Europe, has become increasingly complex. Companies must comply with a growing number of requirements and understand emerging risks. In this context, the role of in-house legal teams has evolved significantly. Gone are the days when their main responsibilities were limited to labor and commercial law. Today, corporate lawyers are, by necessity, called upon to handle a wider variety of topics.

"As a regulated entity, supervised notably by the Luxembourg Institute of Regulation and the Commission de Surveillance du Secteur Financier, we are indeed facing a growing number of issues," confirms Myriam Brunel, Legal & Regulatory Director at Proximus Luxembourg. "The accumulation of successive layers of legislation makes us increasingly solicited, even though legal teams are not necessarily larger."

Operational impacts

The introduction of the General Data Protection Regulation (GDPR) marked a turning point in regulatory transformation. Enforced in spring 2018, it required companies to implement measures to protect the personal data of European citizens and to grant new rights to individuals.

"Applying such a regulation involves evaluating data processing across the organization and adapting processes, sometimes even restructuring them," explains Myriam Brunel. "Moreover, the regulation introduces new financial and reputational risks due to potential significant penalties for non-compliance."

Legal teams may recall the intense discussions, fears, and anxieties triggered by GDPR, yet this was only the beginning of a flood of new regulations. "Regulations continue to evolve, strengthen, and become more complex. Around the digital services we provide, we can mention the Data Act, AI Act, DORA on operational resilience of digital services, and NIS2 regarding cybersecurity of essential operators," adds Brunel. "Added to this are new corporate social and environmental responsibility requirements. On fundamental matters, labor and competition laws are also evolving, for example with preventive measures addressing harassment or fraud."

Anticipating future requirements

Legal departments are far from idle. With these evolving regulations and emerging risks, their role is increasingly strategic.

"One of our primary objectives is to help the company anticipate these changes. This requires enhanced legal monitoring to address new obligations, risks, and opportunities," explains Myriam Brunel. "We illuminate the horizon for leadership, alerting them to future challenges as early as possible."

Beyond identifying new requirements, legal teams must help the company prepare. "Legislation is numerous and often unclear. Technical specifications from authorities, clarifying expected compliance levels, often arrive after regulations are already in force. We work alongside operational teams to inform, raise awareness, and guide them based on available information. As clarifications emerge, we help adapt the measures taken."

Supporting transformations

New regulatory requirements impact organization, operations, and interactions with clients and partners. Legal teams support these transformations.

"We cannot simply say what is allowed or forbidden. Within the rules and the law, our role is also to find creative solutions to support business objectives," says Brunel. "Being part of the management committee allows me to understand business challenges while raising awareness of regulatory impacts. Our role is to identify risks, secure and support the business, and consider opportunities beyond constraints."

The legal department, beyond drafting contracts and client documentation, translates regulatory requirements into operational measures and controls, becoming a true transformation partner.

Because law provides some latitude to organizations and is subject to interpretation, discussions between leadership and legal teams now revolve around risk management, enabling informed decisions considering context.

Mastering new topics

The growing diversity of regulations requires upskilling. "Many recent laws relate to technology. As professionals trained in civil, commercial, labor, and competition law, these are new, highly technical areas. To ensure compliance while supporting business, understanding AI and blockchain, for instance, is essential," says Brunel.

Legal teams must train continuously and leverage trust-based collaboration with engineers. While regulation may seem a barrier to innovation, operational teams must understand the risks and opportunities. "We must make legal matters accessible and understandable to all, ensuring requirements are integrated through appropriate operational measures."

Opportunities beyond constraints

In innovation projects, legal departments benefit from dialogue with regulators. "For major projects, like launching new offerings with significant investments, seeking regulator input helps implement compliant solutions that meet market needs," explains Brunel, citing the implementation of the Clarence disconnected cloud platform via a joint venture with LuxConnect. "Legal considerations include resilience, data confidentiality, partnership terms, technology functioning, and competition law. We received close attention from the regulator, ensuring the solution allows clients to innovate within regulatory frameworks."

At Proximus and its clients, the legal department becomes a performance catalyst, turning regulatory constraints into business opportunities. The ability to navigate these requirements strategically is a key asset.

AI supporting legal services

At Proximus Luxembourg, the legal department consists of four people for 850 staff. "I have three colleagues who help me address all legal challenges," says Brunel.

Facing tasks from advisory to document drafting, contract negotiation, legal monitoring, and regulatory recommendations, the workload is substantial. AI, particularly generative AI, has become a new ally. "We use AI tools to support document drafting. Generative AI can provide a first draft for contracts or letters of intent. We then refine it using our human expertise and context understanding, which remain essential to protect company interests."

Within legal departments, AI is increasingly a productivity tool of choice.