AI’s impact on business models is undeniable, and its rapidly growing adoption is now raising new questions around privacy, cybersecurity, intellectual property, liability and governance.
For businesses, the challenge is no longer simply understanding what AI can automate. It is also about determining how technology can improve decision-making, anticipate risks and create new business opportunities.
To explore these questions, we spoke with Wendy Wagner, Partner and Practice Group Leader, Regulatory at Gowling WLG. Drawing on her experience at the intersection of privacy, cybersecurity, international trade and regulatory law, Wendy shares her perspective on how AI is reshaping risk management, the role of legal advisors and the relationship between innovation, regulation and trust.
What do you see as the biggest opportunity for AI to transform business models in your sector?
Wendy: In my practice, which focuses on privacy, cybersecurity, national security and international trade, the most significant opportunity is the ability to transition from reactive decision-making to proactive risk management.
Traditionally, organizations have been forced to respond to events after they occur, whether it is a cybersecurity incident, a regulatory change, a supply chain disruption or a market shift.
AI has the potential to change that dynamic by helping businesses identify patterns, risks and opportunities much earlier. We are already seeing clients use AI to identify emerging threats, monitor regulatory developments, and better understand increasingly complex risk environments.
The real value is not that the technology can process information faster; it is that it can help decision-makers make better decisions sooner.
The organizations that stand to gain the greatest advantage from AI will not necessarily be those that automate the most tasks. They will be those that use AI to become more predictive, more informed and ultimately more agile than their competitors.
Gowling WLG speaks about anticipating clients’ needs rather than simply responding to their challenges. In a context where AI is evolving faster than legal frameworks, how does this proactive approach change the way lawyers advise their clients?
Wendy: One of the realities of artificial intelligence is that technology is evolving much faster than regulation. Businesses cannot afford to wait for lawmakers to answer every question before moving forward.
That means lawyers need to focus less on helping clients react to new rules and more on helping them build governance structures that can adapt as those rules evolve.
A proactive approach starts with asking different questions. Instead of asking, "What does the law currently require?" we increasingly ask, "What would a responsible organization do in this situation?" and "How can we build a framework that will remain effective even as regulations change?"
For example, organizations implementing AI today should already be considering issues such as accountability, transparency, human oversight, data quality and cybersecurity, regardless of whether a particular jurisdiction has enacted AI-specific legislation.
Businesses that establish strong governance now are often in a much better position to adapt to future regulatory requirements. More importantly, they build trust with customers, employees and stakeholders along the way.
The adoption of AI raises questions around privacy, intellectual property, liability and governance. How can businesses integrate these considerations from the outset of their projects rather than addressing them after the fact?
Wendy: The most effective approach is to treat governance as part of the deployment process, not as a final compliance review before launch.
Too often, organizations develop an AI solution first and only later ask questions about privacy, security, data ownership or liability. By that stage, changing course can be expensive and disruptive.
Instead, businesses should bring together key stakeholders at the beginning of an AI deployment project, including technology teams, security professionals, privacy specialists, risk managers and legal advisors. Early collaboration helps identify potential issues before they become obstacles.
Organizations need to ask some fundamental questions before deploying an AI system:
- What data will be used within the system?
- Who will have access to it (internally and externally) and for what purpose (training, outcomes, etc.)?
- Do we have the right to use the data for the purpose for which the AI system will process it?
- What level of transparency is required for deployment?
- Is there a regulatory framework that governs deployment, and has it been considered?
- How will decisions made by the system be reviewed?
- Who is accountable if something goes wrong?
- What safeguards exist to protect sensitive information? Are access controls being properly deployed? Is it appropriate or necessary to employ anonymization or data masking tools? How will appropriate use and processing be audited and reviewed?
These are not simply legal questions. They are business questions. Addressing them early helps organizations reduce risk, accelerate adoption and build confidence in the technology.
There is a lot of discussion around the need to regulate AI. How can we move from a regulatory mindset toward a framework built on trust, one that can also help enable and accelerate innovation?
Wendy: Trust and innovation should not be viewed as competing objectives. In fact, the most sustainable innovation typically occurs when trust is present.
Businesses, consumers and regulators all want confidence that AI systems are reliable, secure and being used responsibly. The challenge is ensuring that regulation supports those outcomes without becoming so prescriptive that it inhibits innovation.
A trust-based framework focuses on accountability and outcomes rather than rigid technical rules. It encourages organizations to demonstrate that they have assessed risks, implemented safeguards and created appropriate oversight mechanisms.
We have seen similar models emerge in areas such as cybersecurity and privacy, where strong governance practices often become a source of competitive advantage rather than merely a compliance obligation.
Canada’s privacy laws are a good example; they are not prescriptive in nature (particularly when it comes to security measures), but require organizations to make appropriate use of data and secure it to a level that is commensurate with its sensitivity. In large part, it is up to the organization to appropriately define and implement those standards.
Ultimately, organizations that earn trust will be better positioned to deploy new technologies, attract customers, enter new markets and adapt to future regulatory developments. Trust is increasingly becoming a business asset in its own right.
Beyond efficiency gains, where do you see AI creating entirely new possibilities for how law firms can serve their clients?
Wendy: The most exciting opportunities extend well beyond efficiency.
Traditionally, legal advice has often been delivered at specific moments, during a transaction, after an incident or when a regulatory issue arises. AI creates the possibility for a more continuous advisory model.
For example, instead of simply advising on compliance once a year, firms can help clients monitor evolving regulatory obligations, identify emerging risks and assess the potential impact of new developments in near real time.
This is particularly important in areas such as privacy, cybersecurity, national security and international trade, where legal, technological and geopolitical developments increasingly intersect.
AI also creates opportunities for law firms to deliver more integrated advice. Many of today's business challenges cut across multiple disciplines. A decision about data strategy may involve privacy, cybersecurity, intellectual property, commercial agreements and international regulation simultaneously.
Technology can help firms connect those perspectives more effectively and provide clients with advice that reflects the full complexity of modern business decisions.
Ultimately, the future value of AI in legal services is not that it will replace professional judgment. It is that it will allow lawyers to spend more time applying that judgment to the strategic questions that matter most to clients.
Learn more about Gowling WLG
Anticipating Risk, Enabling Innovation
As AI becomes increasingly embedded in business operations, organizations are navigating an environment where technological advances, business opportunities and legal considerations are evolving in parallel.
Gowling WLG’s approach reflects the importance of bringing these perspectives together early, helping organizations anticipate emerging risks, establish strong governance and create the conditions for responsible innovation.
At ALL IN 2026, Wendy will continue the conversation on the Agora Stage, taking part in the session “The AI Cyber Battleground: Defense, Offence and Resilience,” and bringing her legal and regulatory perspective to the evolving challenges shaping AI and cybersecurity today.
