Michalis Kyriakides: Where law firms should invest to gain an advantage

"Artificial intelligence is here to take on the most demanding tasks, and Harris Kyriakides has already implemented such technologies, aiming to reach the level of major global law firms," says Michalis Kyriakides, Partner at Harris Kyriakides law firm.

In an interview with InBusinessNews as part of the "IN Business Forecasting 2024" series, he adds that law firms investing in AI-driven platforms will gain a competitive edge and describes the integration of artificial intelligence in modern legal practice as the most significant trend in the sector.

He specifically mentioned that, very soon, tasks such as simple contract analysis, legal research, and drafting of basic documents will be handled by AI tools.

At the same time, he highlights that mergers in the legal services sector make more sense than ever, especially for small law firms.

Michalis Kyriakides' 2025 outlook

Regarding his forecasts for 2025, Kyriakides believes that, barring unforeseen external developments, it is entirely feasible and realistic for the Cypriot economy to perform better in 2025 compared to 2024.

How do you expect the Cypriot economy to perform in the coming year? How optimistic are you about its prospects?

"2024 seems to be ending with a GDP growth rate exceeding 3%, one of the highest in the Eurozone. While this appears to be a relatively excellent result, I believe there is still clear room for further measures to strengthen the economy."

Indicatively, I would mention the reduction of interest rates, which lowers borrowing costs and encourages investments, the digitisation of all public sector transactions, and tax reform. Barring unforeseen external developments, I personally believe it is entirely achievable and realistic for 2025 to be better than 2024.

Who do you see as the biggest threats to our country’s economy? What should be prioritised to ensure its continued growth?

Primarily, external factors, which the government, first and foremost, and the private sector, in managing their respective businesses, must assess promptly and effectively and, to the extent possible, control.

Cyprus’s strong integration with both EU and non-EU economies makes it particularly vulnerable to the impact of international economic developments.

This high exposure means that geopolitical and trade tensions pose significant risks to the Cypriot economy. Of course, the lack of a long-term plan for creating a competitive identity across various aspects of the economy (products/services) does not help in mitigating these risks.

What should Cyprus do to become an even more attractive destination for foreign investments? And how important do you consider them for the economy?

Foreign investments are vital for the Cypriot economy. They boost employment, promote innovation, and improve the country’s international competitiveness. Regarding what needs to be done, I believe it has been mentioned many times before, but the problem lies in implementation—both in terms of speed and quality of execution.

Enhancing transparency, improving efficiency and digitising processes, upgrading the legal and regulatory framework, modernising and stabilising taxation, building modern infrastructure in health and education, providing incentives for businesses to adopt technology, and increasing green energy use are critical. Additionally, I believe we need to demand more from ourselves when it comes to problem-solving.

For example, when a problem arises that affects our daily lives (e.g., transportation) or a public-interest project collapses for any reason (e.g., the Larnaca Marina), our response must be better, and quick and effective solutions must be provided. We are a small country and economy, and we have a significant advantage in solving problems compared to other countries with larger and more complex systems.

Artificial intelligence is here to take on the most demanding tasks

Regarding your company’s sector, how do you expect it to perform in 2025? Are there any concerns you have?

At present, I do not see any reasons that would justify a significant change in the current situation in 2025. Harris Kyriakides is a well-structured law firm with excellent staff and exceptional organisation. I am satisfied with Harris Kyriakides’ initiatives in 2024, and I believe that in 2025 we will continue with the same dedication and persistence in achieving our goals.

What are the major trends/changes you expect to occur in your sector, and what are the key challenges?

I believe the most significant trend involves the integration of artificial intelligence into modern legal practice. AI is not here merely to assist—it is here to take on the most demanding tasks. Personally, I believe that very soon, tasks such as the analysis of simple contracts, legal research, and the drafting of basic documents will be carried out by AI tools.

These tools not only save time but also enhance accuracy, allowing legal professionals to focus on strategic thinking and delivering value-added services to clients.

At Harris Kyriakides, we have already implemented such technologies, and our goal is to operate at the level of major law firms that compete on a global scale. Overall, it is clear to me that law firms investing in AI-driven platforms will have a competitive advantage. They will offer higher quality, respond faster, and be able to provide services at a lower cost. And these are always key factors in the provision of legal services.

Mergers in legal services more logical than ever

A strong trend that appears to be solidifying in the Cypriot business landscape is that of mergers and acquisitions. Will we also see this trend intensify in your sector?

Indeed, 2024 clearly showed signs of recovery in mergers and acquisitions, both globally and in Cyprus, and I believe this trend will continue into 2025. In the legal services sector, mergers make more sense than ever, especially for small law firms. However, in Cyprus, mergers face certain challenges for various reasons. Internationally, there is a clear trend toward mergers in legal services, and the recent A&O Shearman merger was the largest transatlantic law firm merger in the past two decades.

What can we expect regarding your organisation’s plans and growth strategy for 2025? What steps do you intend to take in this direction?

Harris Kyriakides has a strategic growth plan that it has been implementing for many years. We now have offices in all major cities in Cyprus, we apply specialisation policies for our associates, and we consistently invest in both technology and our people.

Additionally, we maintain a very extensive network of international partners, which enables us to participate in large-scale cross-border cases, and we continue to expand this network over time.

Our goal is to keep providing high-quality services at speeds and in formats that support modern business needs while safeguarding our clients’ rights and interests to the fullest extent, always with integrity, transparency, and professionalism.