Michael Ioannou: Technology – and AI in particular – has certainly transformed the legal industry

For Michael Ioannou, Chief Information Officer at Elias Neocleous & Co LLC, technology - and artificial intelligence (AI) in particular - has transformed Cyprus' legal industry, making it smarter, faster and above all better.

In the interview below, he discusses what AI tools the firm is using, the challenges that came with it and reveals the AI trend he has been watching closely.

What are the specific AI tools that you have adopted? How well did they integrate with your existing infrastructure? Did they require specific customisation to work effectively?

At the core of our AI strategy is Neolaw.ai, our proprietary solution tailored specifically for the legal sector. It leverages our internal knowledge base to provide contextual legal insights, streamline research and assist with legal cases. Complementing Neolaw.ai, we have integrated a range of other AI tools that support both legal and operational efficiency. Tools like ChatGPT are now part of our daily workflows, supporting tasks such as research, drafting and accelerating administrative processes. Additionally, I find the AI-powered note-taking tool valuable in my day-to-day work. It’s integrated with my to-do application and other project management tools, helping me stay organised. Overall, while many tools offer out-of-the-box value, we’ve invested in customisations and secure integration layers to ensure that all AI solutions align with our firm’s operational model, regulatory obligations and high standards for data protection.

Have these AI deployments led to revenue growth, cost savings or improved customer retention? Can you quantify these improvements? And how long will it take before you see a measurable return on your investment?

AI has had a clear and measurable impact across our firm. By automating repetitive tasks, enhancing the speed and accuracy of legal research, we’ve significantly improved operational efficiency. This has allowed our teams to focus more on high-value, client-facing work, leading to increased productivity and billable output. In terms of ROI, we began seeing tangible benefits within four to six months. The key has been to focus on tools with a clear business case and integrate them in a way that complements our existing infrastructure.

What have been the biggest bottlenecks in integrating AI solutions? How did you overcome these challenges?

For us as a law firm, the biggest bottleneck has always been privacy and security. Given the nature of our work and the sensitivity of client data, we’ve had to be extremely cautious about what tools we use, how we use them and when. This concern is one of the reasons that led us to develop our own proprietary AI solution, Neolaw.ai, which is hosted within our own data centres, ensuring full control over data handling and confidentiality.

As AI continues to transform the workplace, how has Elias Neocleous & Co LLC adapted? How have employees responded and what steps have you taken to support this transition?

Technology – and AI in particular – has certainly transformed the legal industry. Rather than replacing roles, it has enhanced the legal profession by enabling professionals to work smarter, faster and with greater precision. One of the most notable shifts we’ve seen is the emergence of hybrid roles like legal engineering professionals who combine legal expertise with technical skills such as software development, automation and data analysis. Initially, as with any new technology, there was some hesitation from employees. But once they saw how AI could enhance (not replace) their work, adoption followed naturally.

In your industry, what types of decisions can realistically be entrusted to an algorithm? And do you think that AI will ever be capable of handling the novelty and ambiguity of executive-level decision-making?

In the legal industry, AI can assist with decision support but not decision-making itself, at least not when it comes to matters requiring nuanced judgment, ethical considerations or interpretation of context. Algorithms are well-suited for structured tasks such as legal research, document analysis, contract review and identifying patterns in data. However, the law is often filled with grey areas, evolving interpretations and unique circumstances. Decisions, particularly those involving strategy, risk or ethics, require a depth of reasoning, emotional intelligence and accountability that AI simply cannot replicate, at least not now. So, while I believe AI will continue to evolve and become an invaluable tool, I remain cautious about assigning it the role of ultimate decision-maker.

Which AI trend or technology are you watching closely and which do you think are more marketing fluff than substance?

One trend I’m watching very closely is the development of AI Agents – autonomous systems that can plan, reason and carry out multi-step tasks with minimal human input. As Mark Zuckerberg recently pointed out, AI Agents could soon play a central role in how we interact with technology and I believe that the concept holds real potential, particularly in complex legal or compliance workflows, where tasks span systems and require coordinated action. That said, I remain cautious. In the legal field, tools need to be trustworthy, explainable and aligned with strict confidentiality standards. Additionally, there’s no shortage of AI tools in our everyday life activities that are more hype than substance. We’ve seen a wave of solutions that promise to enhance our health, replace entire professions, generate creative content effortlessly or manage entire business functions with little to no oversight. Many of these tools sound impressive in marketing materials but fall short in real-world performance or lack the depth required for enterprise use.

What is the one AI breakthrough that you believe will be a game-changer for your industry?

Our vision is to create an AI platform that not only understands legal language but also draws from our own curated knowledge base to deliver accurate, context-aware support across legal workflows. More broadly, I believe that the real breakthrough will come from the development of domain-specific, Explainable AI models that can operate with the depth and precision required by the legal profession. When AI can truly understand legal reasoning, jurisdictional context and regulatory nuance, it will fundamentally transform how lawyers conduct research, manage knowledge and deliver value to clients. What excites me most is not replacing lawyers but enhancing their capabilities, freeing them from repetitive tasks and enabling them to focus on strategy, judgment and client service. That’s the kind of transformation we’re working toward with Neolaw.ai.

• This article was part of GOLD magazine’s Cover Story in April. To view it click here