Inflation Is Here To Stay – What’s Your Legal Team Doing About It?

Inflation isn’t just a headline anymore — it’s sitting at the table in your boardroom, reshaping budgets, and quietly wrecking those long-term deals we all thought were set in stone. For in-house legal teams, this isn’t just background noise. It’s a storm we need to navigate — and fast.

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The challenges are everywhere. CFOs are laser-focused on flexibility. Sales teams want airtight contracts, preferably yesterday. And legal? We’re caught in the middle, trying to balance risk, compliance, and the competing priorities of the business. Inflation has put an uncomfortable spotlight on our processes, but it’s also a chance for legal teams to step up as leaders.

Contracts Are Getting Complicated

Inflation has turned contracts into living, breathing documents. Gone are the days when you could sign a multiyear agreement and forget about it. Now, everything is being revisited. Margins are shrinking, costs are rising, and no one wants to be locked into rigid terms.

I recently spoke with a legal team that got ahead of this by building inflation triggers directly into their agreements. They added cost-plus pricing models and capped escalators tied to market data. It wasn’t a flashy change, but it gave them enough flexibility to renegotiate with vendors without tanking relationships — or their budgets. These are the kinds of proactive moves legal teams need to champion.

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If your contracts aren’t adaptable, you’re not just risking business friction — you’re leaving your company vulnerable to costly disputes. And with tools like contract management platforms, it’s easier than ever to analyze terms, track renewal dates, and pinpoint where you might need to negotiate.

Compliance Challenges Are Heating Up

Inflation isn’t just a financial strain — it’s also a regulatory risk. Price increases tied to inflation can raise eyebrows, especially in sectors already under scrutiny for antitrust or unfair practices. Regulators are paying attention to how companies adjust their pricing models, and legal teams need to be ready.

This is where having a clear, documented rationale for pricing decisions can make all the difference. One GC I know started keeping detailed notes on every price adjustment tied to inflation, backed by market data. When regulators started asking questions, the company was ready with a solid defense.

If you don’t have a system in place to track and justify these changes, you’re flying blind — and that’s not a position you want to be in when a regulator comes knocking.

Legal Teams Are Expected To Do More With Less

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Inflation isn’t just reshaping business strategy — it’s hitting budgets, too. Legal teams are no exception. We’re being asked to deliver the same high-quality work with fewer resources. That’s why efficiency isn’t just a buzzword anymore; it’s a survival strategy.

This is where investing in the right tools can make a difference. Legal technology — like e-billing systems, compliance trackers, or AI-powered contract review tools — can free up time and help your team focus on strategic work instead of getting bogged down in the weeds. For example, I’ve seen teams use automated invoice systems to flag errors and save thousands in duplicate charges. Another team slashed contract review times by using AI to analyze terms and flag potential issues.

These aren’t just cost-saving measures; they’re opportunities to show how legal can bring real value to the business.

What’s Your Next Move?

Inflation isn’t going away, and there’s no magic solution to make it easier. But legal teams are in a unique position to lead the charge, helping their companies stay flexible, compliant, and resilient in the face of economic uncertainty.

So, how’s inflation impacting your team? Are you renegotiating contracts, shoring up compliance processes, or finding creative ways to do more with less? I’d love to hear what’s working for you — or what challenges are keeping you up at night. Let’s talk about how we can tackle this together.

Olga V. Mack is a Fellow at CodeX, The Stanford Center for Legal Informatics, and a Generative AI Editor at law.MIT. Olga embraces legal innovation and had dedicated her career to improving and shaping the future of law. She is convinced that the legal profession will emerge even stronger, more resilient, and more inclusive than before by embracing technology. Olga is also an award-winning general counsel, operations professional, startup advisor, public speaker, adjunct professor, and entrepreneur. She authored Get on Board: Earning Your Ticket to a Corporate Board Seat, Fundamentals of Smart Contract Security, and  Blockchain Value: Transforming Business Models, Society, and Communities. She is working on three books: Visual IQ for Lawyers (ABA 2024), The Rise of Product Lawyers: An Analytical Framework to Systematically Advise Your Clients Throughout the Product Lifecycle (Globe Law and Business 2024), and Legal Operations in the Age of AI and Data (Globe Law and Business 2024). You can follow Olga on LinkedIn and Twitter @olgavmack.