Sebastián Palacios – GC Powerlist
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Chile 2025

Information technology

Sebastián Palacios

Senior corporate counsel | Microsoft

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Chile 2025

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Sebastián Palacios

Senior corporate counsel | Microsoft

What are the most significant cases, projects and transactions that you and your legal team have recently been involved in?

Over the past year, I’ve supported two of the most strategic cloud transformation deals in the region. The first involved a leading Chilean financial institution, where I led the legal negotiation of a multi-year cloud and licensing agreement. This required navigating through the complexity of the local financial regulations related to outsourced cloud services and negotiating non-standard terms related to technology obsolescence and coordinating closely with external counsel and internal stakeholders under tight timelines.

The second was with a major Latin American tech company that operates a large-scale e-commerce and financial services platform. The agreement included the development of an AI-based tool by the customer to enhance their commerce platform. I played a key role in clarifying the scope of intellectual property and data protection clauses, helping align diverse stakeholders and enabling the successful closure of the deal.

How do you approach managing legal aspects during periods of instability or crisis to ensure the organisation’s resilience?  

In moments of instability or crisis, I approach legal management by staying grounded in Microsoft’s culture, which emphasises adaptability, customer obsession, and a growth mindset. I focus on being a collaborative partner—working closely with business teams to understand their evolving needs and helping them navigate uncertainty with clarity and confidence.

I also prioritise creating space for open dialogue, where all voices are heard and respected. This is especially important when decisions need to be made quickly and under pressure. By fostering trust and encouraging diverse perspectives, I help ensure that legal guidance is not only sound but also aligned with the broader goals of the organisation.

Ultimately, I see these situations as opportunities to reinforce resilience—by staying flexible, solution-oriented, and committed to learning and improving as a team.

  

What strategies do you employ to ensure the successful digital transformation of a legal department while maintaining compliance with your country’s data protection laws?

In our legal department, we approach digital transformation as both a cultural and operational shift. We prioritise responsible innovation—leveraging tools like Microsoft 365 Copilot and other AI solutions to streamline legal workflows, while embedding compliance and data protection into every stage of the process.

To ensure alignment with local data protection laws, we work closely with privacy and compliance teams from the outset and rely on Microsoft’s governance frameworks and security-by-design principles to manage data responsibly across jurisdictions.

Equally important is our commitment to learning. We’ve designated AI champions who lead training sessions and hands-on workshops across the team. In some of these workshops, we’ve formed teams to compete in building AI agents designed to automate tasks specific to our legal work. We’ve also shared the outcomes of these sessions broadly, creating space for feedback, inspiration, and iteration. Additionally, we hold regular office hours to exchange use cases and lessons learned. This collaborative learning culture helps us adopt new technologies confidently and compliantly, while staying aligned with Microsoft’s values of trust, inclusion, and continuous improvement.

Have you had any experiences during your career as a lawyer that stand out as particularly unique or interesting?

Yes—one of the most meaningful experiences in my legal career has been participating in Microsoft’s AI Customer Initiative. As part of this effort, I’ve had the opportunity to meet with legal departments across a variety of industries—banking, mining, retail, healthcare—to share how we, as a legal team, are leveraging generative AI tools like Microsoft 365 Copilot in our day-to-day work.

These sessions have been incredibly enriching. We’ve not only demonstrated how these tools enhance productivity and streamline legal workflows but also created space for open dialogue—answering questions, sharing use cases, and listening to concerns. I’ve found it especially valuable to connect with clients’ apprehensions around responsible AI use and to help them think through how to adopt these technologies in a way that aligns with their values and regulatory obligations.

We’ve done the same with law firms, showing how these tools are helping us work more efficiently and strategically. In all these conversations, I’ve embraced the role of an ambassador for responsible AI—raising awareness about potential risks, and promoting a culture of accountability, transparency, and continuous learning.


AI has been taken seriously as a potentially revolutionary technological change in the legal world for a number of years now. Has it had a meaningful impact in how your legal team works in this time?Looking forward, what trends do you foresee in the legal landscape over the next five to ten years that companies should prepare for?

In the next five to ten years, I expect legal teams to play an increasingly strategic role as companies navigate rapid advances in AI, automation, and data-driven technologies. We’ll need to be prepared for a more complex and fragmented regulatory environment—especially around cybersecurity, data protection, and responsible AI.

Legal will also be expected to help organisations stay resilient by enabling innovation while managing risk. That means being adaptable, collaborative, and deeply aligned with the business—values that are core to Microsoft’s culture and to how we operate in our legal department.

Sebastián Palacios - Chile 2024

Senior corporate counsel | Microsoft

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Sebastián Palacios - Chile 2023

Senior corporate counsel | Microsoft

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