Block and Spotify Legal Chiefs Push Proactive AI Governance

Legal leaders at Block and Spotify are reimagining how in-house teams navigate the challenges of AI. Speaking at the 2026 Runway AI Summit, Chrysty Esperanza, Block’s Chief Legal Officer, and Kevan Choset, General Counsel at Spotify, outlined frameworks focused on adaptability, deep technological understanding, and proactive regulation. Their approach reflects a broader industry shift as legal teams become strategic enablers for AI deployment.

Esperanza and Choset agree that saying “no” to AI projects is now the bigger risk. “If you are saying no, that is a higher risk than saying yes,” Esperanza emphasized, pointing to rapid technological compounding. Choset echoed this sentiment, describing his strategy of embedding legal controls early so approvals come pre-built: “Give the yes with caveats before the question even comes up.” For both leaders, the priority is ensuring legal operates as a business partner, not a bottleneck.

No Such Thing as an AI Lawyer

Despite the hype surrounding AI, both leaders downplay the notion of a specialized legal category. When Spotify launched its AI DJ feature—an AI-powered tool mimicking a live radio host—the legal review process remained grounded in traditional questions like privacy, copyright, and transparency. “The lens is AI, but the legal principles are the same,” Choset explained. Similarly, Esperanza noted that reviewing Block’s Money Bot required understanding its data sources and ensuring transparency to build customer trust.

This approach aligns with a July 9, 2026, Axiom report finding that while 93% of legal teams have adopted AI, only 7% achieve intended results. Governance gaps, particularly around operational oversight, remain a barrier to fully leveraging AI’s potential.

Getting Ahead of Regulation

Proactive regulation is another cornerstone of their playbooks. With AI oversight fragmented across jurisdictions, Esperanza advocates for adaptable frameworks. “Coming up with a framework that allows you to pivot is the most sustainable and durable way to approach things,” she said. Choset added that regulation often reacts to predictable concerns like privacy and transparency, enabling companies to preemptively set internal rules. Spotify, for instance, introduced policies in 2025 banning vocal impersonation on its platform—well ahead of formal mandates.

This forward-looking stance reflects a broader industry trend. State-level AI regulations, such as Texas’s Responsible AI Governance Act, are proliferating. A June 2026 Harvard Law School convening highlighted the growing role of general counsel in defining AI risk thresholds and embedding oversight mechanisms.

Building the Tools In-House

Both Block and Spotify have taken the unusual step of developing AI-driven legal tools internally. Block’s team created a marketing compliance tool to automate routine legal reviews, freeing up lawyers for complex cases. Spotify built a parallel system independently. Choset sees this shift as a sign of the times: “Five years ago, this would’ve been handled by a SaaS vendor. Now, you can build it yourself quickly.” He criticized the lack of imagination in some legal teams, noting that non-technical stakeholders often fail to grasp AI’s potential until they engage directly with the tools.

From Compliance to Ethics

Choset and Esperanza view their roles as extending beyond compliance into ethical decision-making. “The general counsel is often the de facto chief ethics officer,” Choset said, adding that robust AI policies require stress-testing principles to pinpoint potential harms. Esperanza ties ethics to customer experience: “There is such a big overlap between what intuitively feels right and what’s right under the law.” She argued that ethical AI practices often translate into competitive advantages by building consumer trust.

For legal teams at earlier stages of AI adoption, Esperanza’s advice is direct: “Roll up your sleeves and build.” Both leaders emphasized the importance of developing practical fluency with AI tools to fully grasp their implications. The shift from reactive compliance to proactive governance is accelerating, and the legal teams that adapt will be the ones driving business value in the AI era.

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