2025 Global Entity Management Snapshot—Key Findings You Need to Know

Entity Management in 2025—Key Industry Insights

According to surveys, 67% of businesses manage entities across three or more jurisdictions. Operating across borders presents one of the major challenges for modern compliance, placing unique demands on legal teams.

At the same time, national regulators continuously develop new rules to address evolving trends, including a focus on ESG, financial transparency, cybersecurity and the widespread adoption of AI. The rapidly shifting business, technological and regulatory landscape, combined with the challenges of cross-border compliance, presents unique challenges for legal teams.

The Top Compliance Challenges Facing Legal Teams

Most legal teams tasked with legal entity compliance in global organizations report maintaining consistency across jurisdictions as their key concern.

When businesses operate across borders, their compliance teams face the following primary challenges:

• Regulatory Divergence: The differences in the scope and application of local laws demand monitoring of evolving regulations, customizing workflows and tracking deadlines in each jurisdiction.
• Absence of Centralized Compliance: Fragmented approaches to compliance and the absence of a single source of truth for corporate records increase the risk of silos, poorly maintained corporate records, and abandoned entities.
• Limited Resources: In most businesses, compliance teams include one to three legal professionals, which demands even greater productivity and efficiency.

Technology in Entity Management—Adoption vs. Satisfaction

The 2025 Entity Management Report demonstrated that 84% of organizations have already implemented specialized entity management tools. Meanwhile, the level of satisfaction with legal technology is still low due to the deficiencies of employed solutions.

Most often, legal professionals list the following as their key frustrations with entity management software:

• Non-Intuitive Interface: Subpar user experience and hard-to-navigate interface deter legal professionals from using the tools to their full potential.
• Steep Learning Curve: Many legal departments cite a heavy learning curve as one of the reasons preventing them from fully utilizing the technology
• Lack of Functionality: In many cases, legal tech adoption is hindered by the lack of functionality required by legal teams, such as deadline tracking, audit trails, or customization options.
• Lack of Integrations: Legal departments working with older technologies face a lack of integrations with modern tools like eSignature, FileForms, and other solutions.
• Insufficient or Incomplete Automation: Many older platforms lack automation workflows and AI tools to enable legal teams to work with an increased number of corporate records and legal entities while addressing regulatory complexity.

AI in Compliance—47% of Legal Teams are Investing Now

AI tools have been a game changer for many sectors, including the legal industry, with 47% of legal teams adopting artificial intelligence for compliance automation.

Implementing AI technology for multinational entity management allows legal teams to drive efficiency, process large volumes of documentation in minutes instead of hours, automate their processes, and reduce costs.

Legal teams working with AI tools available in Athennian entity management software achieve multiple benefits, including:

• Time Savings: Athennian's AI-based tools enable a 90% reduction in document filing time and cut entity creation time down to 10 minutes.
• Better Compliance: By reducing manual input with AI tools, legal teams increase data accuracy and ensure better compliance.
• Reduced Legal Costs: Increased productivity achieved with AI-powered entity management software allows legal departments to reduce their dependence on external counsel and cut legal costs. 

Conclusion and What's Next for Entity Management

As most organizations operate across multiple jurisdictions, entity management is becoming ever more complex. Legal teams increasingly are switching to modern entity management software and invest in AI for compliance automation to address global entity management trends in 2025.

With evolving AI regulations, the growing role of ESG, cybersecurity, data privacy and financial transparency, legal departments are preparing for a strategic pivot. For more information and full insights on corporate governance trends, download the Athennian 2025 Global Entity Management Report today!