The rise of AI is turning the digital economy into a driving force behind mergers and acquisitions for law firms

The digital economy has moved from being a promise to becoming a structural pillar of business. It is no longer about small-scale technology acquisitions with limited impact, but rather large-scale transactions — such as Alphabet's acquisition of Wiz for $32 billion — that reflect the strategic importance of data, artificial intelligence, and cybersecurity in the global economy.

This shift in scale has a direct impact on the legal market. Leading firms agree that the digital economy sector will continue to grow in terms of revenue and complexity towards 2026, driven by both an increase in transaction volume and unprecedented regulatory pressure. In this context, legal advisory is no longer limited to supporting innovation but has become a critical element for making it viable.

AI, data, and regulation: the new business leak

Artificial intelligence, the data economy, and advanced digital environments are being widely integrated into business models. The question is no longer what technology can do, but how it is governed, audited, and integrated into key processes such as operations, regulatory compliance, or decision-making.

At ECIJA, this evolution is particularly evident. Alejandro Touriño, managing partner, emphasizes that the sector is entering a phase marked by the effective implementation of major European regulatory frameworks: “With the AI Law fully in effect from August 2026 and the Data Law already applicable, companies' agendas are clearly dominated by artificial intelligence governance, cloud contracts, and IoT environments.”

This is complemented by the effective implementation of other key regulations: “Regulations such as DORA or NIS2 have ceased to be a theoretical exercise and are now in a phase of effective supervision, with audits, critical supplier registries, and the first inspections on the table”, adds Touriño.

The push for technological mergers and acquisitions

This regulatory environment is not hindering transaction activity; on the contrary, technological and regulatory sophistication is driving it. Technological mergers and acquisitions are consolidating as one of the main engines of the market, with transactions requiring increasingly specialized due diligence in areas such as AI, data protection, cybersecurity, and sector-specific regulatory compliance.

The gradual entry into force of the Artificial Intelligence Regulation also introduces a new level of legal complexity, especially for high-risk systems, which is creating a strong demand for advice on system classification, governance models, and regulatory adaptation.

Growing… and fragmented regulatory pressure

The growth of the digital economy is accompanied by an increasingly demanding regulatory framework that can sometimes be difficult to harmonize. One of the main challenges is not only the large volume of regulations but also the multiplicity of competent authorities and the potential overlap of criteria.

In the words of Alejandro Touriño: “The coexistence of bodies such as the AEPD, the CNMC, the AESIA, INCIBE, the Bank of Spain, the CNMV, and various sector supervisors — whose criteria are not always aligned — creates a real risk of parallel procedures on the same facts.”

This reality increases the regulatory compliance burden for companies and calls for a comprehensive legal approach capable of anticipating regulatory risks from a cross-cutting perspective.

From regulation to sanction: a phase shift

Another important trend in the market is the shift from regulation to its effective enforcement. In areas such as cybersecurity, the enforcement phase is already a reality. In artificial intelligence, although the timetable is somewhat more gradual, significant penalties are expected in the short term, which is accelerating compliance and internal control projects.

This evolution marks a turning point: digital regulation ceases to be a programmatic framework and becomes an operational element, with a direct impact on liability, contracting, and business strategy.

European competitiveness: an open debate

The intensity of regulation has also revived the debate about Europe’s competitiveness compared to other markets. ECIJA emphasizes the need to nuance this assessment: “The impact is real, but the real challenge lies not only in the level of regulation but in regulatory fragmentation and the lack of coherence between regulatory frameworks and authorities,” notes Touriño.

In this scenario, the role of the legal advisor is key to turning regulation into a competitive advantage, helping companies innovate with legal certainty, strategic vision, and effective compliance.

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