In recent years, we have been witnessing an unprecedented evolution: it is becoming increasingly clear that Artificial Intelligence (AI) will constitute an integral part of our lives \u2013 not only professionally, but also in our everyday routines. Its impact is particularly strong on the younger generations \u2013 our children \u2013 who adopt and accept technology more easily and shape a daily life increasingly based on it.<\/p>\n
If we had asked a painter a few years ago to depict the legal profession in a painting, at the centre of the work we would see a man or woman in black robes \u2013 a legal gown \u2013 seated at a wooden desk, with a large library full of old, leather-bound law books in the background.<\/p>\n
If we asked the same painter to create the same painting today, the setting would be quite different: in the centre, a modern lawyer standing, not behind a desk, but in front of a large digital screen. On the screen are open case files, legal texts, and AI-generated legal arguments. Behind the lawyer, figures of clients \u2013 a migrant, a businessperson, an elderly individual, a young mother \u2013 representing the diversity of those seeking legal protection today.<\/p>\n
In Cyprus, the use of AI is gradually being introduced \u2013 both in the financial and banking sector and in the legal profession. The question we must answer as professionals is not just how we adopt this technology, but how we integrate it responsibly, with respect for the law, ethics, and client protection.<\/p>\n
AI is already being used by major banking and investment institutions for portfolio analysis and management, as well as for automated compliance checks in the fight against money laundering (AML). Therefore, for us legal professionals, this brings new responsibilities: we must understand how these digital tools work in order to properly advise our clients \u2013 whether institutional investors or individuals.<\/p>\n
AI is now also impacting our own profession directly. In our law firm, we use AI both for legal research and in the adoption of software solutions for the smooth operation of our accounting department, as well as for the functioning of our Compliance Department. However, we must be cautious: AI does not replace legal judgment \u2013 it complements it. It is a tool, not a lawyer.<\/p>\n
Nevertheless, the use of AI in such sensitive areas \u2013 like legal science and wealth management \u2013 raises important questions regarding personal data protection. AI applications must fully comply with the General Data Protection Regulation (GDPR) and Cypriot legislation. Furthermore, we must address the issue of liability in case of error: if an \u201cintelligent\u201d algorithm leads to an incorrect investment decision or legal outcome, who bears responsibility?<\/p>\n
Human supervision of these systems must remain essential. Clients have the right to know whether the advice they receive comes from a person or a machine.<\/p>\n
Cyprus has all the prerequisites to become a regional innovation hub in AI, provided that we proceed with concrete policy actions and harmonise fully with the European Union. The AI Act was officially approved by the European Parliament in March 2024. It is the world\u2019s first comprehensive legal framework for Artificial Intelligence. Its implementation will begin gradually from 2025 to 2026, depending on the type and risk level of the technology.<\/p>\n
Despite this progress, significant steps are still needed \u2013 both at the level of member states and private institutions. The creation of certified training programs for lawyers and advisors to understand the technologies their clients use is crucial. Equally important is the establishment of \u201cregulatory sandboxes\u201d for testing AI applications without legal risk, under the supervision of CySEC, the Cyprus Bar Association, and the Central Bank.<\/p>\n
Lawyers and compliance officers must be trained in the legal, ethical, and technical dimensions of AI. The relationship between AI and GDPR remains critical. Clear interpretation is needed regarding how AI aligns with the principles of consent, transparency, and automation.<\/p>\n
Cyprus has started to move in this direction through the Deputy Ministry of Innovation and the Cyprus Bar Association, with seminars and training initiatives. However, full implementation of the AI Act and the creation of robust oversight mechanisms are still at an early stage.<\/p>\n
It is also worth noting that, as of today (June 2025), there is no official or open access to CyLaw for automated AI-based search and analysis of court rulings, as is the case in other countries (e.g., CourtListener in the USA or EUR-Lex in the EU). While CyLaw is a highly valuable platform for the Cypriot legal community, it is not yet technologically equipped for widespread use by AI systems \u2013 mainly due to technical limitations and legal concerns over data protection.<\/p>\n
Artificial Intelligence is already here. It will not replace the lawyer \u2013 but those who fail to learn and adopt it may be left behind. For us in the legal profession, it is not just a technological challenge, but a new professional and ethical responsibility.<\/p>\n
Our role is to ensure that AI operates within the framework of the law and always with respect for the human being.<\/p>\n
The content of this article is valid as at the date of its first publication. It is intended to provide a general guide to the subject matter and does not constitute legal advice. We recommend that you seek professional advice on your specific matter before acting on any information provided. For further information or advice, please contact Savvas Savvides<\/a>, Senior Partner, Paphos Office of Michael Kyprianou law firm at Tel +357 26930800 or email <\/em>savvas.savvides@kyprianou.com<\/em><\/a><\/p>\n","protected":false},"excerpt":{"rendered":" In recent years, we have been witnessing an unprecedent 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