What Microsoft expects from its law firms in the AI era

Microsoft’s legal function is transitioning from a traditional service model to a platform-based approach, driven by the rapid pace of AI innovation and complex global regulations like the EU AI Act. Rebecca Anderson, Head of Legal for EMEA, emphasizes that in-house counsel must shift from reactive support to strategic business partnership. By deploying AI-enabled triage systems and contract drafting agents, the legal team scales its operations, allowing attorneys to focus on high-value, novel problem-solving. External law firms are now expected to demonstrate AI fluency, transparency in value, and a commitment to building the next generation of legal talent. This evolution demands that lawyers cultivate strong business acumen and curiosity, as the nature of legal work shifts toward managing AI systems and navigating an increasingly complex regulatory landscape.