“AI and technology more broadly will have a significant impact on the Cypriot legal profession. We are also likely to see Cyprus law firms increasingly adopt the operating models of leading international firms, placing greater emphasis on attracting, developing and retaining talented lawyers, while providing clear and transparent pathways to partnership and equity ownership,” suggests Menelaos Kypriainou, Managing Partner at Michael Kyprianou & Co LLC.
In an interview with GOLD magazine, Kyprianou discusses the modernisation and challenges of Cyprus’ judicial system.
The modernisation of Cyprus’ judicial system has faced a number of significant implementation challenges. With the Commercial and Admiralty Courts yet to become fully operational, the iJustice platform experiencing delays and case backlogs continuing to affect court efficiency, what do you believe are the principal barriers to successful reform? What recommendations would you make to ensure that various initiatives deliver their intended objectives?
The duration of court proceedings in Cyprus remains a serious concern and, as a matter of fact, disposition times for civil and commercial cases in Cyprus continue to rank among the highest in the EU. This acts as a deterrent for individuals and businesses considering litigation and also, critically, for foreign businesses considering investing in Cyprus.
There are, I believe, a number of reasons why, despite the serious effort that has been made in recent years, we have not yet seen the results we hoped for.
First and foremost, Cyprus still lacks a sufficiently advanced Alternative Dispute Resolution (ADR) framework. This would significantly reduce the number of disputes proceeding through the courts, while offering parties a faster, more efficient and cost-effective means of resolving disputes.
A second factor is the prolonged delay in the operation of the Commercial and Maritime Courts. Although the legislation establishing these courts has already been adopted, key implementation steps including the recruitment of judges remain outstanding. Again, these new courts will relieve pressure on the existing court system and will provide for the delivery of high-quality justice by specialised judges in the commercial sector.
The limited progress that has been seen as regards the digital transformation of the justice system is also a factor with the existing iJustice system being utilised only for specific matters and by selected courts. At the same time other key projects such as the introduction of digital audio recording in court proceedings, the ejustice case management system and the setting into operation of remote hearings have not yet materialised.
With the Screening of Foreign Direct Investments Law now in force, how does the new regime affect cross-border transactions?
The Foreign Direct Investments Law of 2025 (‘the Law’) was implemented so that Cyprus can be compliant with its EU obligations. The EU recognises that Foreign Direct Investment is a key driver of economic growth contributing to job creation, the inflow of capital, technology and innovation. The EU and its Member States have an open investment environment, which is enshrined in the Treaty on the Functioning of the European Union.
What has the process of adopting AI been like for law firms?
Cyprus law firms are in the process of adopting AI but it is not yet clear (either in Cyprus or in the rest of the world) to what extent exactly this will affect the legal sector. My own view is that AI will be a very useful tool for simpler tasks such as legal research or providing first drafts of uncomplicated contracts. Lawyers who adopt AI effectively may therefore be able to serve more clients at a lower cost. AI will not, however, be able to replace the lawyer where advice is sought on complex or novel issues, where professional judgment and accountability are required or where there is a need to exercise ethical judgment. As regards the possible pitfalls I would simply refer to the judgment of the High Court of England issued last year in the case of Aylinde v London Borough of Haringey. The case concerned the misuse of AI by a young barrister who had filed a submission generated by AI which contained numerous errors. In this case, the High Court of England held that presenting wrong material amounts to an attempt to mislead the court and that such conduct can lead to fines or even to disbarment.
Inflation and rising operational costs are squeezing law firms. How are these challenges reflected in how lawyers conduct their business?
In view of rising operational costs, I believe that the law firms that will perform better in the future are those which can improve efficiency through technology and are able to focus on high-value areas where they can differentiate themselves through their expertise. Law firms will also need to manage staffing effectively and strengthen client relationships by adding value and being clear in pricing.
How do you envision the Cypriot legal profession evolving by 2030? Do opportunities exist for expansion into new lines of business?
AI and technology more broadly will have a significant impact on the Cypriot legal profession. We are also likely to see Cyprus law firms increasingly adopt the operating models of leading international firms, placing greater emphasis on attracting, developing and retaining talented lawyers, while providing clear and transparent pathways to partnership and equity ownership. Cyprus as a country has very solid foundations – it is a member of the EU, it has a clear tax system, an effective (though not perfect) government administration and a highly educated workforce. Cyprus and its legal profession will, therefore, continue to thrive.
This interview first appeared in the August edition of GOLD magazine. Click here to view it.
