Is Industry Experience a Must-Have for Today’s General Counsel?

At JM Search, we’re seeing a fundamental shift in how companies evaluate General Counsel candidates. The question is no longer “Do they know our industry?” but rather “Can they learn it quickly and lead effectively?” The answer increasingly is yes, thanks to artificial intelligence. 

Like all industries, AI is reshaping the legal landscape and lowering the barrier to entry for GC roles. While deep sector knowledge still adds value, it’s no longer the defining factor for success in the role. AI tools now enable GCs to rapidly master industry-specific regulations, terminology, and precedents that once required years of immersion. Research that previously required deep sector knowledge can be automated, allowing strong legal leaders to get up to speed faster than ever before. 

Historically, companies treated industry experience as table stakes for legal leadership, particularly in highly regulated or deeply technical sectors. That assumption still holds true in certain fields, such as biotech and life sciences, where specialized education and deep scientific literacy are essential. Similarly, financial services and energy companies often benefit from GCs who can navigate complex compliance frameworks from day one.

This doesn’t mean industry experience is irrelevant everywhere. A GC overseeing FDA approvals or SEC compliance needs more than AI can provide; they need years of lived experience navigating those specific regulatory environments. But these are the exceptions, not the rule. For most industries, the barriers have fallen.

If industry experience is no longer the defining criterion, what should companies prioritize instead? Below, we’ll explore what truly separates exceptional GCs from good ones, and why the best candidate for your organization might be leading a legal department in an entirely different sector.  

The GC Skills That Matter Today 

“One of the most common requests we hear is that a client’s next General Counsel must come from the same industry,” says Dan Figueroa, Partner at JM Search. “But when we probe what the GC will actually be doing, we often discover that deep industry experience isn’t essential. Sharp, adaptable lawyers can pick up industry nuances quickly. Once clients see this, it opens the door to finding truly exceptional GCs they might otherwise have overlooked.”

So what does separate the best from the rest? AI-powered legal research platforms, real-time regulatory monitoring, and decision-support copilots now enable GCs to master new industries and legal terrain far faster than ever before. As technology takes on more of the rote legal work – from drafting contracts to managing document discovery – the real differentiators have shifted. 

The GC candidates who stand out most today are the ones who: 

• Work through ambiguity with sound judgment and adaptability  

• Translate legal complexity into commercial strategy and business growth decisions  

• Balance innovation and compliance without stalling momentum  

• Bring boardroom presence and lead with clarity in rapidly changing environments  

• Stay calm under pressure and know when to escalate or absorb it  

• Serve as both legal counsel and change agents  

These skills don’t live in any single sector. Leaders develop them through exposure, leadership, and learning agility. 

Why Outsiders Often Outperform 

Based on our conversations with CEOs, there’s a growing need for GCs who challenge conventional wisdom, prioritizing diversity of perspective over sector familiarity. This is especially true in industries being disrupted by technology and regulation, where boards value legal leaders who can drive digital governance and AI oversight even without deep industry tenure. The strongest candidates understand how AI tools shift risk, governance, and compliance frameworks, and they’re shaping strategy around those shifts rather than reacting to them. 

Hiring from outside an industry isn’t just acceptable. In many cases, it’s advantageous. Outsiders aren’t bound by “the way things have always been done” and often spot inefficiencies and challenge processes that insiders overlook. They also approach new environments with curiosity and critical distance. This explorer mindset helps them push back on assumptions and encourage innovation within the company. GCs who’ve worked across multiple industries also bring a wider regulatory lens and a stronger instinct for emerging risks. 

When Industry Experience Still Matters 

Deep sector knowledge remains essential in specific contexts: 

• Industries requiring scientific or technical fluency: Biotech, pharma, healthcare, nuclear, and other highly technical sectors demand scientific or technical expertise that requires direct education.  

• Industries with strict disclosure/governance obligations: Public companies often favor GCs who’ve navigated SEC reporting and investor scrutiny.  

• Early-stage startups: These companies benefit from GCs with relevant experience who can build legal infrastructure from the ground up. 

What separates the strongest GC candidates isn’t deep industry tenure, but how quickly they adapt, how soundly they judge, and how effectively they earn credibility with the CEO, board, and C-suite. Before defaulting to “must have industry experience” in your next GC search, ask: is that a true requirement, or just legacy thinking? The companies that challenge this assumption will access a much deeper talent pool, and secure legal leaders who bring fresh thinking, proven leadership skills, and the ability to master your industry faster than you think possible.