Corporate legal departments are facing growing urgency to leverage artificial intelligence (AI) as they work to keep pace with business demands and industry change. In episode 29 of the Legal Leaders Exchange podcast, two of DHL’s legal leaders—Mark Smolik, General Counsel for DHL Supply Chain Americas, and Elaine Darr, Senior Vice President and Global Head of Digital Legal & Innovation—share their experience navigating this shift.
Their insights provide a valuable roadmap for legal operations professionals working to align with business goals, build effective teams, and adopt AI responsibly. Many in-house legal teams are seeking ways they can embrace AI without losing sight of business fundamentals. DHL’s story demonstrates what’s possible when legal departments think strategically about alignment, resources, and innovation.
The need to transform
DHL's legal team was facing the challenge of navigating rapid business growth, increasing complexity, and heightened expectations from both internal stakeholders and external partners. To meet these demands, incremental changes were not enough. The team needed a scalable legal operations model capable of delivering measurable business value while keeping pace with the company's broader digital transformation. This need drove DHL to reimagine its operating model, harness the power of AI and data, and redefine the legal department as a strategic business partner. The legal department’s leadership team thinks strategically about budget and business performance, linking the department’s budget to the company’s revenue objectives. This positions legal as a partner in driving performance, rather than a cost center to be managed. It also offers insight into the level of business success needed to support the operations and initiatives of the legal department. With this in mind, DHL undertook several key steps:
- Legal ops business model alignment: DHL reimagined its legal operations approach by aligning more closely with the company’s broader strategy. This shift positioned legal not just as a support function, but as an active contributor to business goals.
- Harnessing data and AI: The department embeds AI and data analytics into daily operations, allowing the team to uncover efficiencies and generate insights that support smarter decision-making. Their approach underscores the importance of thoughtfully piloting AI before scaling.
- Building the right teams: Strong outcomes start with the right people in the right roles. DHL is focused on strategically structuring internal and external teams, leveraging diverse skills, setting clear expectations, and maximizing value at every level.
- Setting bold yet practical goals: Ambition drives progress, but sustainability requires balance. DHL’s leaders advocate for setting bold goals while breaking them down into achievable steps, ensuring steady momentum without overwhelming the organization.
Hosting an innovation summit
In June, DHL hosted a legal operations innovation summit led by Mark and Elaine. This differed from many industry conferences because it was an in-house initiative rather than a vendor-led event. The summit brought together colleagues and partners to explore how AI can be adopted and scaled across the business.
This collaborative model not only showcased the legal team’s leadership role but also demonstrated how in-house counsel can drive the conversation on emerging technologies.
Practical insights for legal ops leaders
For legal operations professionals looking to apply DHL’s lessons, the path forward begins with a few clear, actionable steps:
- Make company goals the starting point: Anchor legal initiatives to the company’s overall objectives to ensure that resources, both budget and people, are heading in the right direction. Those actions that most clearly help achieve business goals should be prioritized.
- Pilot AI thoughtfully: Begin small, measure results, and scale based on proven impact. In DHL’s case, the company has asked Elaine to lead the effort to roll out many of the changes she and Mark have made across other divisions of the organization.
- Structure teams strategically: Build capacity with a mix of skills and clarity around roles. Bring stakeholders together to think about which skills would be the most useful additions and shape the team accordingly.
DHL’s journey illustrates how legal departments can evolve from reactive support functions into proactive leaders of innovation. By aligning with business goals, adopting AI responsibly, and building strong teams, legal leaders can demonstrate their value as essential business partners.
For more inspiration and practical guidance, listen to the episode: Legal leadership in the age of AI: Lessons from DHL.
