Smart Contracts for In-House Counsel: Automating Legal Operations in a DAO World

Are smart contracts and Decentralized Autonomous Organizations (DAOs) just buzzwords—or are they the next evolution in how legal teams operate? As these technologies gain traction, in-house counsel must begin considering their application to improve legal operations. Smart contracts for in-house counsel offer more than just automation. They present opportunities to enhance accuracy, speed, and efficiency in contract execution and compliance.

Louis Sanchez de Lozada, Director Legal Counsel at Unigestion UK, is at the forefront of this movement. He has a legal career that spans Bolivia, France, and the UK, along with deep experience in investment funds. Louis brings a global perspective to how emerging technologies can reshape legal workflows. His doctoral research compared fiduciary structures worldwide. This research laid the groundwork for his current exploration into smart contracts and blockchain-powered legal tools.

Watch the full conversation with Louis Sanchez de Lozada here:

Louis’s entry point into the world of smart contracts wasn’t theoretical—it was driven by a desire to improve real in-house processes. He points to the UK Law Commission’s report recognizing the legal validity of smart contracts as a pivotal moment. Louis sees the immediate opportunity at the clause level. Operational obligations like notifications, payments, or triggers can be automated, rather than replacing entire contracts.

This modular strategy allows legal teams to dip their toes into automation without overhauling entire systems. It’s a future-facing approach that balances innovation with legal risk management.

Louis also explores the evolving legal frameworks around DAOs. With states like Wyoming recognizing DAOs as legal entities, the conversation is shifting from “what if” to “how soon.” For in-house counsel, this means understanding the implications of DAO governance—particularly the differences between member-managed and manager-managed models. Regulatory bodies tend to favor the latter for accountability reasons, especially in sectors like finance.

DAOs raise fresh questions about decentralization, control, and fiduciary duties—areas where legal guidance is critical from the outset.

One key distinction Louis draws is between DAOs and smart investment funds. While both leverage smart contracts, smart funds typically retain a traditional manager structure, providing more legal clarity and investor confidence. The blockchain infrastructure—public vs. private—also has legal implications, affecting everything from transparency to compliance obligations.

For in-house counsel supporting investment operations or financial products, these distinctions are essential. They help to structure offerings that are both innovative and compliant.

Louis highlights the role of oracles and sensors in connecting smart contracts to real-world events. Oracles supply off-chain data—like market prices or legal deadlines. Meanwhile, sensors can trigger off-chain actions, such as initiating a payment. For in-house legal teams, understanding these systems is crucial when advising on automated agreements or designing legally binding digital interactions.

Implementing smart contracts isn’t without risk. Louis underscores the importance of auditing, version control, and maintaining flexibility. Smart contracts can be vulnerable to bugs, and once deployed, they are notoriously difficult to amend. In-house lawyers must work closely with technologists to ensure contracts are built for resilience, clarity, and ongoing adaptability.

Ultimately, smart contracts for in-house counsel aren’t just a legal tool—they’re a collaborative opportunity. Lawyers, engineers, and regulators must work together to ensure that automation is applied responsibly. Louis’s approach is cautious but optimistic: embrace innovation, but ground it in legal fundamentals.

The rise of smart contracts and DAOs doesn’t mean the end of legal practice as we know it. Rather, it signals the beginning of a smarter, more efficient way to deliver legal value—one clause, one contract, one process at a time.

Watch the full conversation here:  Notes to My (Legal) Self: Season 4, Episode 18 (ft.Louis Sanchez de Lozada)

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