Introducing The Visionaries second edition, our latest publication showcasing the expertise and thought leadership of 24 IR Global members, representing 18 jurisdictions. Readers will gain valuable insights through four comprehensive chapters, each offering crucial 'advice in the year of elections.' These chapters delve into key topics such as Technology, Global Mobility, Intervention & Regulation, and Transgressive Behaviour, providing in-depth analysis and perspectives that are both timely and relevant.
October 2024
YOUR GUIDE to navigating a complex and ever-changing global business environment from professional service firms across the globe
24 IR Global members
share their insights on key topics facing the industry today
TECHNOLOGY “Don’t waive client-attorney privilege by submitting information to a robot.” Thomas H. Curran Thomas H. Curran Associates p8
TRANGRESSIVE BEHAVIOUR Shilpen Savani on balancing company culture with individual rights
GEOPOLITICAL CLIMATE Isabella Bertani advises agility in the face of legislative changes
INTERVENTION AND REGULATION James Daneri discusses investing in the US from overseas
INTEGRITY IMPACT QUALITY
FROM THE EDITOR Advice in the year of elections
IR Global is a multi-disciplinary professional services network that provides legal, accountancy and financial advice to both companies and individuals around the world. Our membership consists of the highest quality boutique and mid-sized firms who service the mid-market. Firms which are focused on partner led, personal service and have extensive cross border experience. Represented in 165+ jurisdictions, covering over 70 unique practice areas, we are perfectly placed to offer the highest quality bespoke advice that meets the needs of the most complex client requirements. Since 2010, our community has grown to 1,400+ members worldwide based on the principles of friendship, trust and a shared belief in going beyond the traditional role of the adviser. Today we exist as the ‘go to’ network for forward thinking clients looking for creative, pragmatic and cost effective solutions.
Highest quality bespoke advice, meeting the needs of the most complex client requirements
Charles Scherer
info@irglobal.com
Twenty-seven general elections have fallen in 2024. At the time of writing, twenty have taken place, but one of the most impactful and momentous polling days – the US Presidential Election – is still to come. No year has ever had such potential for peaceful and democratic regime change, and for those with an international outlook or a cross-border business, the 2020s may have continued as they began – full of stress, uncertainty, and economic strife. New leaders will all have their own remedies for inflation, employment crises, and economic stagnation, and their mandates and mechanisms to administer them will vary in strength. At the same time, change represents an opportunity for those prepared to take it. The initiatives of incoming governments mean new conditions to adapt to and to thrive in, while market stress factors can mean more businesses ready for
acquisition and more opportunities to let necessity drive innovation. AI remains an exciting, if mysterious, prospect for businesses. It is full of promise for efficiency, cost- savings, customer experience, and productivity, but often the specifics of how to apply it are difficult to pin down. It is also sometimes a source of anxiety in areas like compliance, security, data, privacy, and public
“No year has ever had such potential for peaceful and democratic regime change.”
Thomas Wheeler Founder of IR Global
“The group’s founding philosophy was based on cultivating a giving mentality and creating a system which is ethical, sustainable and always puts clients’ interests first.”
relations. Businesses may have to contend with regulations that industry bodies choose to impose, existing national and international laws that are relevant to AI’s operations, and the EU’s new AI act, which threatens those who contravene its rules with fines of € 35m or 7% of turnover (whichever is greater). For some, the cultural gap between generations in the workplace seems as pronounced as ever, if not more so. Social media-driven younger generations are increasingly drawing thicker boundaries between work and ‘life’, and to some, the professional is the political. In the wider employment market, some industries still find themselves with vacancies that they cannot fill, while others cannot handle the volume of applications they receive. Some things, as ever, remain the same. War continues on European soil as the Russia-Ukraine conflict rages on – the same conflict that began in 2022 as a fresh crisis to replace the waning pandemic. In the Middle East, the sustained violence between Israel and Hamas shows no signs of abating, but returning to the topic of elections, the next US president will have the power to heavily influence the character and the outcome of the hostilities. We may wonder whether instability is the new standard, and businesses must be comfortable with being uncomfortable. Even if that is the case they can at least rely on highly qualified and experienced advisers to offer guidance and strategy in all conditions. In the following chapters, IR Global members offer their invaluable perspectives from this year of elections for the years ahead.
For further information, please contact: Rachel Finch Head of Digital & Sponsorships rachel@irglobal.com
IR Global is a multi-disciplinary professional services network that provides legal, accountancy and financial advice to companies and individuals around the world.
Annie Elsmore Social Media Executive annie@irglobal.com
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• CONTENTS
CANADA – CANADA EAST, QUEBEC Isabella Bertani BERTANI p44
In this issue:
Business and the state P56
TECHNOLOGY
US – MASSACHUSETTS, TEXAS, CONNECTICUT Thomas H. Curran Thomas H. Curran Associates p8
P8 US – MASSACHUSETTS, TEXAS, CONNECTICUT Thomas H. Curran, Thomas H. Curran Associates, LLC P12 SWEDEN Cristina Bergner, Crista Law firm AB P14 ENGLAND Paul Beare, Paul Beare Ltd P16 DR CONGO Amani Cibambo, Amani Law Firm P18 AUSTRALIA James Conomos, JCL Law Partners P20 MAURITIUS Vimal Damry, Premier Financial Services Limited P22 ENGLAND Katherine Evans, Mirkwood Evans Vincent P24 BRITISH VIRGIN ISLANDS Nelcia St. Jean, McW Todman & Co P26 CANADA WEST Curtis Marble, Carbert Waite LLP P28 GERMANY Florian Wettner, METIS Rechtsanwälte PartG mbB
INTERVENTION & REGULATION
P58 US – CALIFORNIA James Daneri, Blanchard, Krasner & French P58 US – CALIFORNIA Rachel Forster, Blanchard, Krasner & French P62 PHILIPPINES Randolf De Guzman, De Guzman, Pascual & Associates CPAs P62 PHILIPPINES Hector Pascual, De Guzman, Pascual & Associates CPAs P64 ENGLAND Justin Moore, Arnold Hill P66 BRAZIL Marcelo Botelho Pupo, BPS
GEOPOLITICAL CLIMATE
P44 CANADA – CANADA EAST, QU EBEC Isabella Bertani, BERTANI P48 BVI Glenn Harrigan, ACA, CCP Group of Companies P50 POLAND Robert Lewandowski, DLP Dr Lewandowski & Partners P52 CURAÇAO Rudsel Lucas, Sadekya Fiduciary Partners B.V. P54 BERMUDA Edward Allanby, Leman Management
US – CALIFORNIA James Daneri Blanchard, Krasner & French p60
Doing business during change, instability, and economic stress P42
P32 ENGLAND Shilpen Savani, gunnercooke llp P36 US – CALIFORNIA Rebecca Torrey, The Torrey Firm P40 MEXICO Edmundo Escobar, Escobar y Gorostieta, SC Lawyers TRANSGRESSIVE BEHAVIOUR
ENGLAND Shilpen Savani gunnercooke llp p32
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FEATURING...
Technology
P8
US – MASSACHUSETTS, CONNECTICUT, TEXAS Thomas H. Curran Thomas H. Curran Associates, LLC
P12 SWEDEN
Cristina Bergner Crista Law firm AB
P14 ENGLAND Paul Beare
Paul Beare Ltd
P16 DR CONGO
Amani Cibambo Amani Law Firm
P18 AUSTRALIA
James Conomos JCL Law Partners
P20 MAURITIUS Vimal Damry
Premier Financial Services Limited
AI is rapidly transforming all industries, reshaping dispute resolution and business growth strategies. It introduces both opportunities and challenges, from liability concerns to its role in commercial contracts and due diligence. This chapter explores how emerging technologies impact legal frameworks, with expert insights on managing AI-related risks and sector-specific vulnerabilities. Regarding AI’s role in commercial contracts, Katherine Evans argues that the key question isn’t whether AI should be used, but how businesses can balance its time-saving capabilities with the risks of inaccurate or biased data analysis. She emphasises that while AI accelerates tasks like document review, human oversight is crucial to ensure proper context and interpretation. On legal risks in DR Congo, Amani Cibambo
P22 ENGLAND
Katherine Evans Mirkwood Evans Vincent
highlights the growing concerns over data privacy and cybersecurity as businesses increasingly adopt technology. He notes
P24 BRITISH VIRGIN ISLANDS Nelcia St. Jean McW Todman & Co
that Dr Congo’s regulatory framework lags behind technological advancements, particularly in areas like blockchain and AI, which leaves businesses exposed to legal uncertainties. In contrast, Curtis Marble discusses Alberta, Canada’s leadership in arbitration, emphasising its cost-effectiveness and tech-friendly legal infrastructure. He also notes Alberta’s ongoing efforts to address AI-related liabilities, stressing that while AI improves efficiency, the legal framework still requires human accountability to mitigate risks, especially in complex arbitration cases.
P26 CANADA WEST Curtis Marble Carbert Waite LLP
P28 GERMANY
Florian Wettner METIS Rechtsanwälte PartG mbB
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• TECHNOLOGY
US – MASSACHUSETTS, TEXAS, CONNECTICUT
AI: Inevitable, but limited
Thomas H. Curran Managing Partner Thomas H. Curran Associates, LLC
Q1 How should parties seek and agree to ADR, and what advantages does your jurisdiction offer? ADR can be an excellent approach to litigation. It is generally faster and more malleable, allowing the parties more control and flexibility to participate in the process. Massachusetts is known for its mandatory ADR programs for civil actions pending in the trial court. Massachusetts appreciates the substantial advantages
“Don’t waive client-attorney
around its use. In September, the United Kingdom, the European Union, and several other countries signed the first legally binding international agreement to ensure that AI systems align with democratic values. The treaty focuses on protecting human rights, safeguarding democracy, and upholding the rule of law. One goal of the treaty is to encourage countries to consider the effects of AI on human health and the environment.
Commonwealth’s rendition of the Federal Arbitration Act (FAA). The Massachusetts Act mirrors the FAA in making pre- and post-dispute agreements to arbitrate “valid, enforceable and irrevocable,” except on the grounds of revocation or another competing and contradictory contract provisions. M.G.L.c. 251 section 1. Q2 Have you seen or do you expect to see a rise in the use of AI to discover infringements and actionable matters? It is unclear what function AI can serve competently investigating matters, actions, or infringements that attorneys and/or professional investigators typically handle. However, I am sure that AI will eventually become a useful tool in the process of discovering infringements and actionable matters. However, it is important to note that there have been recent global initiatives enacted to combat the abuse of AI and implement stricter parameters
privilege by submitting information to a robot.” Thomas H. Curran, Thomas H. Curran Associates, LLC
and benefits ADR offers, such as preserving judicial resources and
Thomas H. Curran has developed his practice over the past three decades, focusing primarily on bankruptcy and insolvency proceedings. He often represents secured and unsecured creditors, committees of creditors, trustees and equity security holders in bankruptcy and insolvency proceedings as well as financial institutions and other lenders in out-of-court loan restructurings, assignments for the benefit of creditors, foreclosures, repossessions, and the sale of distressed assets and businesses. He also has experience representing business debtors in workout, restructuring and bankruptcy matters.
reducing the number and length of case backlogs. In Massachusetts, parties may use ADR at any time period throughout the pendency of their proceedings. Massachusetts proposes several styles of ADR, including Court-Connected ADR, Housing specialists, and private ADR services. When deciding whether to participate in ADR, the fundamental question becomes whether the jurisdiction will enforce arbitration awards and agreements reached through mediation. Massachusetts, as a general rule, enforces arbitration awards. The Massachusetts Uniform Arbitration Act, M.G.L. c. 251, is the
+1 6172 078 670 tcurran@thcalaw.com irglobal.com/advisor/thomas-h-curran
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• TECHNOLOGY
US – MASSACHUSETTS, TEXAS, CONNECTICUT
About us...
MY ADVICE...
Client protection and maintaining the client-lawyer relationship • Make sure there are AI measures protecting work product and client information. • Don’t waive client-attorney privilege by submitting information to a robot. • Close loop – make sure that your work, research, questions, etc., are not going to be remembered by AI and won’t become discoverable in the AI system to third parties.
and double-check the results – this will help minimise liability. • Use a system that is checks constantly for defects to avoid errors and falsifications.
Person at the helm
intelligence-based technologies into their practice. Further, the opinion operates as a reminder of the pillars of professionalism in the legal profession, such as client confidentiality, communication, and legal competence. Moreover, Massachusetts Attorney General Andrea Campbell issued an advisory on April 16, 2024, acknowledging the safeguards the Commonwealth has adopted involving AI and forewarning AI users, suppliers, and developers of the Massachusetts Consumer Protection Act (Chapter 93A) and its bearing on AI. Additionally, the advisory reminds us of the Commonwealth’s Anti-Discrimination Law, GL c. 151B, §4 which prohibits developers, suppliers, and users of AI systems from deploying technology that discriminates against residents based on a legally protected characteristic. The Boston Bar Association has published numerous practice tips and articles focusing on the responsibilities associated with using AI. Data privacy and security are themes of concern, as is the risk of unauthorised access or data breaches. Additionally, adhering to Rule 11 of the Federal Rules of Civil Procedures is vital when using AI. The main thrust of the rule is to ensure that attorneys do not present frivolous claims, defenses, and other legal contentions to the court in written pleadings or papers to the court. “When employing AI in any capacity, the question becomes whether the user or the AI system will be held accountable for the results.”
• AI hasn’t lived with the case as you have – facts can be more nuanced, therefore what AI generates doesn’t have the knowledge and familiarity that the attorneys and staff working the case have. • AI is an excellent baseline tool for research, but it is only the start of the process, it should not be the end result. • Nuanced issues need to be probed for further information. • You can’t replace an experienced professional who can check their law and facts and do their own due diligence.
With offices in Austin, Boston, New York & London, Thomas H. Curran Associates, LLC represents a wide variety of individuals, businesses, corporate entities, and governmental agencies in litigation and transactional matters throughout the United States and Western Europe. We have navigated a broad range of commercial litigation cases, including cross-border insolvency, institutional creditors’ rights, bet the company litigation, and have earned a winning track record throughout the United States.
Reliability
• Make sure that the system is calculated explicitly for legal professionals and relies on verified legal resources, don’t fall for the “short-cut” trap. • Only pull from vetted and reliable resources,
thcalaw.com
Thomas Curran speaking with IR Global members during a professional networking event.
“With our innovative approach to complex litigation challenges, we consistently and effectively deliver unparalleled value to our clients.”
Q3 What questions does AI pose for liability – who is accountable for the actions of AI and has your jurisdiction prepared for the question? As previously mentioned, the rise of AI is inescapable and has gradually melded into the practice of law. Nevertheless, the rise of AI poses considerable issues, notably ethical and legal concerns. When employing AI in any capacity, the question becomes
whether the user or the AI system will be held accountable for the results. Massachusetts has already taken the initiative to combat these rising concerns. On July 29, 2024, the American Bar Association Standing Committee on Ethics and Professional Responsibility published Formal Opinion 512 on Generative Artificial Intelligence Tools. The opinion reflects the rising concerns surrounding generative artificial intelligence in law practice, particularly emphasising the care and vigilance lawyers and law firms should employ if they decide to integrate artificial
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• TECHNOLOGY
SWEDEN
Modern arguments
MY ADVICE...
Proactive Legal Compliance: Establish comprehensive governance
decision-making processes, and any changes made. Transparency in how AI systems work and are maintained helps in demonstrating due diligence and accountability.
legal concepts like negligence or fault apply to AI systems. How prepared are insurance companies at managing risks associated with AI? Sweden is actively working to address the challenges of AI liability through legal, regulatory, and policy measures. Sweden has had a national AI strategy since 2018: “National approach for artificial intelligence”. The strategy outlines principles for the responsible use of AI, including transparency, fairness and accountability. It also points out the general direction and focuses on the following priorities; education, training, research, innovation framework and infrastructure. These principles are intended to guide the development and deployment of AI technologies and address potential liability issues. Further Swedish government agencies, such as the Swedish Data Protection Authority and the Swedish National Board of Trade, are actively involved in discussions about AI regulation and liability. They provide guidance and oversight to ensure that AI systems comply with legal and ethical standards. While specific AI liability laws are still under development mainly within the EU such as the EU AI Act, in Sweden the existing laws are being interpreted and adapted to address AI-related issues by the authorities and courts. Sweden’s adherence to GDPR provides a strong foundation for data privacy and security which is an important aspect of AI liability.
policies for AI development and deployment. This includes defining roles and responsibilities, setting standards for ethical AI use, and ensuring compliance with relevant regulations, such as GDPR in Europe or the upcoming EU AI Act. Transparency and Explainability: Maintain detailed documentation of the AI system’s development, training data,
Regular Monitoring and Audits: Conduct regular audits, risk
assessments and updates of AI systems to potential vulnerabilities, biases or compliance issues. Implement ongoing montoring to ensure that AI systems operate within legal and ethical boundaries.
Cristina Bergner Partner Crista Law firm AB
Dispute resolution in a mobile and connected world
Q1 How should parties seek and agree a seat for ADR, and what advantages does your jurisdiction offer? First of all I recommend that you identify which type of ADR you want to use. It could be mediation, arbitration or another form. This choice of type of ADR might influence the selection of seat. Also consider factors like convenience, neutrality, confidentiality and the availability of experienced ADR professionals. As a member of the EU, Sweden can offer EUIPO’s new service ADR through which you can use mediation as an alternative dispute resolution for intellectual property disputes at EU level. In Sweden ADR is often used as a faster and cheaper way of solving disputes between consumers and businesses. It is done outside of court through mediation, conciliation, arbitration, ombudsmen and different alternative complaint boards normally organised through trade and branch associations. Sweden is internationally recognised for its neutrality which makes it attractive for ADR. Sweden also has a well-established legal infrastructure that supports ADR with the Swedish Arbitration Act providing a robust framework. It is also stipulated in the Swedish Code of Judicial Procedure that the court shall, if the matter is suitable for an out-of-court settlement, initiate such discussion and work with the parties to reach a settlement.
Q2 Have you seen or do you expect to see a rise in the use of AI to discover infringements and actionable matters? The use of AI for discovering infringements and actionable matters is already an emerging trend globally,
Q3 What questions does AI pose for liability – who is accountable for the actions of AI and has your jurisdiction prepared for the question? AI poses many questions regarding liability. You have the problem of determining accountability; who is responsible if the AI systems causes harm? Is it the developer, the system or the users? A further question currently under discussion in Sweden is liability and how existing Swedish law and product liability law apply to AI. Can it be treated like a defective product under product liability laws? Finally there is the question of ethical and legal compliance and how traditional
using tools to analyse vast amounts of data quickly, identifying patterns and anomalies that might indicate infringements and actionable issues. AI is also used in contract review and management including for legal research. AI can assist in predicting likelihood of success in legal actions by analysing patterns from past cases and potentially identifying new approaches to complex legal issues. Using AI one can also identify legal trends which would be very useful in dispute resolution and mediation and also identifying potential breaches in real-time. For example AI is well suited to be used in detecting IP infringements, VAT and tax evasions due to being able to detect patterns and parties involved. AI can also at an early stage detect people or companies on the internet initiating and inciting crime.
including Sweden. The public legal institutions have not yet initiated the use of AI formally but AI will most likely reduce the time and cost associated with legal disputes both in the public system as well as for the clients or parties in disputes. Many Swedish companies are at present looking into streamlining legal proceedings as well as well as
Cristina Bergner specialises in franchise related questions as well as counsel in AML and white collar crime investigations. She is often engaged in dispute resolution in general court and in arbitration. Cristina is also involved in IT development projects within the legal area related to companies and investigations. As an experienced lawyer she combines a robust understanding of both legal principles and technological innovation to support the responsible development and deployment of AI technologies. Cristina often engages with companies in navigating the complex intersection of law and advanced technology to ensure successful development. At present she is involved in a project developing services for companies to secure they have compliant systems and policies in order to avoid, among other issues, fines, sanctions and criminal legal measures against e.g. the board or CEO. Part of Cristina’s background includes working at the Swedish Tax Agency, which enabled her to acquire specific experience in tax proceedings. Her other areas of expertise include employment-related matters and general commercial law. In her area of work Cristina finds that collaborating cross-border is crucial in succeeding for the clients and development within legal technology.
About us...
www.cristalaw.se
Crista Law firm is a boutique law firm offering specialist advice in the major fields of commercial law, with specialist knowledge and considerable experience in areas such as franchising, property law, private or public investigations in white collar crime including corruption and anti-money laundering. Crista Law firm offers clients highly skilled and personalised legal advice, which often leads to a more hands-on and responsive approach to legal matters. Crista Law firm offers a first-class service, providing tailor made solutions to its clients with a high level of commitment and genuine interest invested in the client’s business. The firm believes in establishing close, long-term
lawyer-client relationships. This enables us to understand what is important to our client’s business and offer advice that is specifically tailored to a particular situation for the individual client. Apart from legal advice Crista Law firm offers through the founder Cristina Bergner an experienced lawyer who combines her understanding, interest and engagement of how to combine legal principles with technological innovation to support successful development of AI technologies. The commercial benefit to our clients is of paramount importance to us and often achieved through international collaborations.
+46 70 108 86 88 cristina@cristalaw.se irglobal.com/advisor/cristina-bergner
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• TECHNOLOGY
ENGLAND
MY ADVICE...
Protecting the data crown jewels: AI systems need a lot of data to train
are becoming significantly more expensive and more frequent. Cybercriminal groups are continually developing their tool kit for themselves and their customers – for example, to make the process of data exfiltration quicker and easier through the use of AI.
AI: Businesses’ new nervous system
and work. This need can expose private and confidential information to unauthorised access, theft, or leakage. Data breaches can cause financial losses, reputation damage, legal problems, and regulatory penalties for accounting and finance organisations and their clients. Ransomware getting more sophisticated: While ransomware attacks are by no means a new threat, they
regulations was £267,002 from 53 fines, compared to £178,947 in the prior year from 59 fines. Counting the cost This isn’t just an issue for larger international firms. Smaller accountancy practices and professionals are also at the sharp end. Ignoring the importance of AI would be a mistake – not just for clients but for the practices themselves. So, AI may represent a game changer for accountants, and for our clients. We have found that mapping out our processes to find ways to increase efficiency through automation has been extremely useful. Our operations are now generally smoother and more integrated, in large part thanks to tools that integrate seamlessly and save us time on monotonous transactional tasks. AI is already impacting how accountants are finding, onboarding and retaining clients, not just through efficient tools but also helping us become more intuitive and responsive to client needs. It also allows us to cross-sell more effectively, as our practice management package captures and summarises our relationship with each client, highlighting areas where we could offer other services. And for our clients, the emergence of these new technologies represents an opportunity to get much more value from their professional service advisers. If we can do things quicker, cheaper and safer, then that will inevitably have a beneficial impact on the levels of service we can deliver. Because while technology continues to develop and evolve, one thing remains the same: successful business is built on relationships.
Predictive analytics powered by AI: AI is now moving into its 2.0 phase,
building on existing tools to help accountants gather more data and begin to make predictive contributions to client service.
Paul Beare Founder Paul Beare Ltd
“The most important function of AI is finding the right data at the right time.”
T echnology is an increasingly important part of what we do as accountants. Whether that’s through accounting software, cloud- based solutions or AI-bots, no practice can expect to keep pace with client demands without adopting and rolling out up-to-date technology. And artificial intelligence will inevitably be powering much of the next wave of solutions and tools. Just as cloud-based applications shook up the enterprise software space ten years ago, the next decade will see AI increasingly embedded into everyday applications across the tech stack. Intelligence squared At PB Ltd, we’ve already begun this journey. Using AI tools has helped us create a responsive and agile practice, allowing us to not only to track and analyse data, but to capture insight and begin to deliver predictive capabilities. But one of the key challenges that practices face is how to seamlessly integrate all of these tools. And a lot of that is about data integration and consolidating data from different sources. We use a practice management software package that helps us track
both inside and outside. Our experience with it demonstrates that AI-led tools are especially good at summarising things: gathering – or aggregating – data together, making sense of it and filtering out extraneous detail to deliver a high-level overview of a client relationship, for instance, or a contract. Sign on the dotted line The most important function of AI is finding the right data at the right time, and then making sense of that data. In practice, that might involve scouring a contract and delivering the key clauses, messages and features to an accounting professional. We are already seeing how AI will have an impact on how contracts are created and managed. Certainly, the process of creating contracts has been speeded up as AI improves functionality to assure that terms are properly vetted. This allows accounting professionals (as well as lawyers) and their counterparts to spend less time on manual, monotonous review, and more time on higher-value work. It’s also true that AI tools reduce the chances of mistakes being made during the entire contracting process. After all, there are simply too many important dates, deadlines, and terms and conditions to catch with the human eye. Because it’s fair to say that when tasked with authoring agreements, sitting through multiple rounds of changes, or searching historical contracts for agreeable terms, contracting professionals may find the work flat
and monotonous, or lose focus on it altogether. Now, AI tools are now better at helping to insert restrictive covenants into contracts that might otherwise be left out. But AI means they no longer need to look through a 27-page services agreement; instead, they will be presented with the three elements that are important for this contract; it can then compare and contrast that with other suppliers and contracts. Know your customer In addition to the impact on contracts, AI will also change the way we undertake due diligence on customers and counterparties. Perhaps the most impactful area of that will be in anti- money laundering (AML), a central part of our operational relationships with clients. One of the key elements of AML work is the requirement to carry out due diligence on their clients to make sure no illegal activities are taking place. Then, if the accountants’ suspicions are raised, they must report it to the relevant
oversight bodies. For accountants in particular, the risk is even more significant: every practice in the UK must implement internal controls, maintain proper records, and train their staff on AML procedures to remain compliant with AML regulations in the UK. The days of putting this off are over. Regulators (and there are several) are taking a more proactive approach to enforcement. In 2022-23, HMRC carried out 907 onsite visits and 834 desk-based reviews across the 35,000 businesses it supervises. That accounts for around 5% of the total. The levels of non-compliance among the reviewed firms was stark: 493 firms were named as non-compliant – 28%. So the timing of AI’s emergence as a key tool in this is fortunate, because there’s no doubt of the direction of travel: towards greater enforcement of AML compliance. Recent figures showed that the total value of fines dished out by the ICAEW in 2021/22 for breaches of money laundering
Paul and his team support the needs of overseas companies setting up and operating in the UK. One element is paramount with every client – they all need support and expert guidance. Paul and his team advise clients on the appropriate legal entity, payroll, VAT, banking and company secretarial services. Clients range from publicly-quoted companies through to owner-managed businesses. Paul travels frequently to Australia, New Zealand and the US, and has been heavily involved in IR Global for nine years. He uses the support network for clients when they are focusing on expanding their UK company. Clients will use this as a foundation for further expansion into Europe and beyond. Paul Beare has particular expertise in helping clients decide on the best structures to use when setting up and growing a business in the UK – for instance, guiding clients towards the right choice between using a UK branch or a UK subsidiary.
About us... www.paulbeare.com Paul has been immersed in the corporate services sector since he was 15 and is still relatively young to be heading up such a business. His vast experience allows him to act as a trusted advisor to clients, taking care of a range of services, from opening a bank account to setting up a payroll system. He developed his experience of international accountancy services working for his father’s business. Having started and grown his own firm in London and the surrounding area, he has since expanded to Australia and New Zealand. He is currently a resident
client activity across our remote operations. The idea is to funnel
everything we do – client interactions, document management, emails and so on – through the AI tool. By doing that it captures everything the practice is doing at any one time, so the platform almost acts as a ‘central nervous system’ for the business, sensing, recording and reacting to everything that’s happening
of Auckland but remains a frequent visitor to the UK and still has strong family and personal ties to the UK and has a home in London. He describes himself as passionate and flamboyant, and committed to helping his clients no matter what they need.
+ 44 (0) 207 183 8786 paul@paulbeare.com irglobal.com/advisor/paul-beare
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• TECHNOLOGY
DR CONGO
to identify the most relevant information. Additionally, the increased reliance on technology introduces new risks, including data security concerns and the potential for inaccuracies or biases in AI algorithms. These issues can compromise the reliability of the analysis and potentially lead to flawed decisions. Businesses must invest in appropriate tools, train staff to use them effectively, and enforce strong data security measures. By doing so, companies can leverage technology to enhance due diligence processes while minimising risks related to data overload and security. Legal Risks Arising from Technological Advancements in the Democratic Republic of Congo In the Democratic Republic of Congo (DRC), the rapid adoption of commercial and consumer technologies has brought about significant legal challenges. As businesses in the DRC increasingly rely on digital platforms and technologies, they are exposed to a new set of legal risks. 1. Data Privacy and Protection: With the growing use of digital technologies, the protection of personal data has become a critical issue. Although the DRC has implemented regulations to safeguard personal data, enforcement remains inconsistent, and many businesses lack the necessary infrastructure to comply fully with these regulations. The risk of data breaches and unauthorised access to personal information is high, particularly in sectors such as finance, telecommunications, and healthcare, where large amounts of sensitive data are processed. 2. Cybersecurity Threats: The proliferation of digital technologies has also led to an increase in cybercrime, with businesses in the DRC becoming more vulnerable to cyberattacks, hacking, and online fraud. The lack of comprehensive cybersecurity laws and the limited availability of advanced cybersecurity solutions exacerbate these risks. The financial and reputational damage caused by a cyberattack can be devastating. 3. Regulatory Uncertainty: The pace of technological innovation often outstrips the development of legal frameworks, leading to regulatory uncertainty in the DRC. For instance, the use of blockchain technology and cryptocurrencies remains largely
unregulated, creating a legal grey area for businesses that wish to adopt these technologies. Similarly, the absence of clear guidelines on the use of AI and automated systems in business processes can lead to legal disputes and challenges. Companies operating in the DRC must navigate these uncertainties by staying abreast of regulatory developments and seeking legal counsel when adopting new technologies.
financial loss or harm, determining who is responsible can be challenging. Businesses must be proactive in managing these risks and seek legal advice on liability issues. Conclusion The productivity paradox, along with the integration of technology into legal and business processes, raises complex questions about the relationship between technological advancement, economic growth, and risk management. In the DRC, these issues are particularly pronounced due to the rapid pace of technological change relative to the development of legal and regulatory frameworks. For businesses operating in the DRC, understanding and anticipating the legal challenges of new technologies is essential. While technology offers significant opportunities for growth and efficiency, it also introduces new risks that must be carefully managed. By adopting a proactive approach to legal risk management, businesses can harness the power of technology, while safeguarding against legal pitfalls. The integration of technology into business and legal practices is not a straightforward path to increased productivity. It requires careful planning, investment in skills and infrastructure, and a nuanced understanding of the legal landscape. As businesses continue to embrace digital transformation, they must remain vigilant about the legal implications of their technological choices and be prepared to adapt to an evolving regulatory environment. Only by doing so can they fully realise the benefits of technology while mitigating the risks that come with it.
New risks,
new rewards
Legal Opportunities and Risks for Businesses
Understanding and anticipating the legal implications of technological evolution is crucial for companies to thrive in an increasingly digital world. 1. Automation of Legal Processes: The automation of legal processes through AI can lead to significant cost savings and efficiency gains for businesses. However, the adoption of AI in legal processes also raises questions about accountability and the potential for errors. Businesses must ensure that automated systems are transparent and that there are mechanisms in place to correct any mistakes that may arise. 2. Blockchain in Commercial Transactions: Blockchain technology offers a secure and transparent way to conduct commercial transactions, reducing the risk of fraud and enhancing trust. However, the legal status of blockchain transactions remains uncertain in many jurisdictions, including the DRC. 3. Liability for Technological Errors: As businesses increasingly rely on technologies such as AI, IoT, and automated systems, the issue of liability for technological errors becomes more pressing. For example, if an AI system makes a faulty decision that leads to
Amani Cibambo Founder and Managing Partner Amani Law Firm
The productivity paradox: Does more technology mean less growth?
However, AI’s use introduces complexities. The accuracy of AI-driven analysis depends on the quality of the training data. If this data is biased, incomplete, or unrepresentative, the AI may produce misleading results, leading to legal risks. Moreover, AI lacks the nuanced understanding of context that human lawyers provide. Legal language often contains subtleties that require careful interpretation within the contract’s specific context. As a result, human oversight is still necessary to verify and interpret AI findings. While AI can improve efficiency in managing commercial contracts, its implementation requires caution. Businesses must balance using AI for routine tasks with maintaining human oversight for complex or high-stakes negotiations to fully realise AI’s benefits without introducing new risks. Technology and Due Diligence: Simplification or Overcomplication? Technology has made due diligence in commercial transactions, mergers, and acquisitions more efficient, yet simultaneously more complex. Digital tools now enable rapid collection and analysis of vast amounts of data, allowing teams to review documents, contracts, and financial statements quickly. AI-powered platforms can uncover patterns and anomalies that might be missed in traditional methods, offering deeper insights into a target company’s operations and risks. However, the sheer volume of data available can overwhelm, leading to analysis paralysis, where it’s challenging
Nobel Prize-winning economist Robert Solow famously remarked, “You can see the computer age everywhere except in the productivity statistics.” This paradox remains relevant today as industries rapidly adopt AI, automation, and digitalisation. Despite their potential to boost productivity by automating tasks and optimising processes, the initial costs of implementing these technologies—such as investments in new systems and employee training— can temporarily slow growth. Moreover, their benefits often take time to materialise, as companies navigate integration challenges. Additionally, as technology advances, incremental productivity gains may diminish. AI in Commercial Contracts: A Time- Saver or a Source of Delays? The integration of AI for drafting, analysing, and managing commercial contracts marks a significant shift in how legal services are delivered. AI promises to streamline the contract lifecycle by automating tasks and potentially lowering legal costs for businesses. AI-powered tools can analyse vast amounts of data quickly and accurately, identifying potential issues that might be overlooked by human lawyers. This capability is especially beneficial in industries with large volumes of contracts, such as finance, real estate, or international trade.
Amani Cibambo is a distinguished lawyer based in Kinshasa, Democratic Republic of Congo (DRC), and the founder and Managing Partner of Amani Law Firm (ALF), which he established in 2010. Amani has practised at the Kinshasa/Gombe bar since 2005 and has an academic background in literature, specifically in Latin and philosophy, which he studied at the Alfajiri College in Bukavu. He later pursued legal studies at the Catholic University of Bukavu and the University of Kinshasa. Amani Cibambo’s has acted as legal counsel to nearly all the major banks in the DRC. His deep understanding of the financial sector, expertise in corporate services, and experience navigating the complex financial and regulatory environment of the DRC, has made him the go-to lawyer for banking institutions. For more information, you can visit Amani Law Firm’s official website or check out his profiles on professional advisory platforms like IR Global, UIA, ONA/RDC and Advisory Excellence.
About us...
www.amanilf.cd
Amani Law Firm is a specialist corprate law firm based in Kinshasa since January 5, 2010. ALF assists its clients from their creation, throughout their life. ALF helps its clients to face all the difficulties related to the exercise of their activities in the Democratic Republic of Congo and even outside the borders of the Democratic Republic of Congo when circumstances allow it. This is how it has, within it, various specialties to assist and represent its clients, individuals and legal entities, in their activities. To learn more about ALF legal services, please visit us at www.amanilf.cd
+243 850 0840 622 amani@amanilf.cd irglobal.com/advisor/amani-cibambo
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• TECHNOLOGY
AUSTRALIA
MY ADVICE...
Keeping
Disputes, AI and modern law
We need to develop consistent standards for all stakeholders (including our employees) by providing education, so we know how to use AI, as it is not a replacement for hard work but a tool for us to become more effective. We need to include into client agreements if you use AI, as some clients will be less comfortable with the concept of AI, either because they aren’t comfortable with technology or due to concerns about confidentiality. We need to design our systems with confidentiality in mind, for example, you could use numeric values for clients instead of their names.
to resolve disputes is critical and is a necessary tool in any litigator’s arsenal. Q2 Have you seen or do you expect to see a rise in the use of AI to discover infringements and actionable matters? Although AI is a relatively recent topic of global conversation, firms had been investing in AI for years. It was used as soon as it was able to be used. This is evidenced through the now infamous case of Mata v Avianca. Here, a lawyer in the US used ChatGPT to create their submissions, but ChatGPT fabricated several cases that did not exist. Rather than admit his mistake or withdraw the submissions, they continued to insist the cases were real and did not admit to using AI until the court issued an order threatening them with sanctions. The use of AI was not the central problem here; it was the lawyer’s overreliance on it, his failure to check that the AI’s information was correct. The solicitor was punished in the form of sanctions and a fine. Police use AI in many ways including to help determine who is most likely to have committed a crime, e.g. surveillance to flag suspicious activity for human review - tasks that would otherwise take a human a long time to do. The danger is that AI can be coded with human bias. In this case, AI cannot tell the difference between why a certain subpopulation may have higher rates of offending. The law will be more accessible to potential clients as they will be able to
namely: (a) AI systems should benefit individuals, society and the environment. (b) AI systems should respect human rights, diversity, and the autonomy of individuals. (c) AI systems should be inclusive and accessible they should not involve or result in unfair discrimination. (d) AI systems should respect and uphold privacy rights and data protection and ensure the security of data. (e) AI systems should reliably operate in accordance with their intended purpose. (f) There should be transparency and responsible disclosure, so people are aware when an AI system is engaging with them. (g) When an AI system significantly impacts a person, community, group or environment, there should be a timely process to allow a challenge to the use of the AI system. (h) Those responsible for different phases of the AI system lifecycle should be identifiable and accountable for the outcomes of the AI systems. There are many applications of the use of AI by legal practitioners to save time. Presently, a significant failure in Australia is a lack of AI-specific legislation and preparing legal practitioners for the use of AI, unlike in other jurisdictions. The ethical risks for legal practitioners include: • where there is risk of hallucination. • where there is risk of client information being leaked either because the AI firm can share that information or there is a hack. • inability to prepare against the bias of the AI or know the quality of the information the AI provides.
it human
James Conomos Founder and Principal Partner JCL Law Partners
inexpensively discover if they have a potential cause of action. On the other hand, AI may lead to an increase in matters. For example, the question of whether internet scraping of publicly available but copyrighted materials to train AI systems is an infringement on someone’s intellectual property rights is yet to be determined or an increased number of killings from autonomous weapon systems. Q3 What questions does AI pose for liability – who is accountable for the actions of AI and has your jurisdiction prepared for the question? Australia has 8 AI Ethics Principles defined by the Government that are a voluntary and aspirational framework,
Q1 How should parties seek and agree a seat for ADR, and what advantages does your jurisdiction offer? In Australia, Alternative Dispute Resolution (ADR) is the term for a process often called ‘mediation’ and involves exploring resolution or outcomes before or as an alternative to a court determination. ADR has many applications for all and any types of disputes including private disputes, family and business disputes. The use of ADR is most useful where parties express a willingness to act genuinely and cooperate to explore options to resolve their dispute. The reason for and the benefits of ADR include: • eases the way of access to justice as it saves money and time while maintaining confidentiality. • can repair the damaged relationship and involve a win/win for parties. • considered less stressful than exposure to the court process. • more flexible process, and leading to broader outcomes than a court determination. In Australia, ADR is required (with exceptions) in many jurisdictions including in the Supreme and Federal Courts and in family law proceedings. Certain jurisdictions have a longer
history of ADR - family law disputes, juvenile offender issues and Indigenous Australian and Torres Strait Islander issues are some examples. In commercial disputes in Australia, mediation has many useful advantages including: (a) mediations are invariably conducted with the assistance of an experienced mediator (often a senior lawyer), whose role is to facilitate discussion to explore resolution. (b) mediations are held without prejudice, i.e. what is said at a
mediation cannot be used against a party at a subsequent hearing if there is no resolution, and they are designed to be neutral; the parties decide the terms of any settlement. (c) mediations are confidential and participants are often asked to sign an agreement to that effect. (d) mediations give parties the opportunity to avoid the significant costs, uncertainty and formalities of the legal process, often saving time. For lawyers who seriously engage in dispute resolution, the use of mediation
With more than 30 years’ experience, Jim leads the firm’s strategic direction, which has always focused on effective and efficient problem resolution. He is a recognised leader in commercial litigation and insolvency law and has garnered a widely respected reputation within Queensland’s legal community. Jim’s impressive career has seen him serve as the Queensland State Chair of the Insolvency and Reconstruction Committee of the Business Law Section of the Law Council of Australia, Queensland State Chair of the Insolvency and Reconstruction Committee of the Queensland Law Society and the National Chair |of the Insolvency and Reconstruction Committee of the Business Law Section of the Council of Australia and is presently a counsellor of the legal professional body in Queensland, the Queensland Law Society.
About us... www.jcl.com.au JCL Law Partners was established by James Conomos in July 1992 as a boutique legal firm offering specialist expertise in commercial litigation and insolvency. The firm came into being because James is passionate about achieving positive outcomes for clients and providing real value for money. Since then, James has pursued his desire to help younger lawyers learn the art of law and
problem solving. Through his mentoring, James has shaped a team of capable and ambitious lawyers who will adeptly solve your legal problems within a realistic time frame. Based in modern offices in the heart of Brisbane’s central business hub, our team has now grown to a total of 15 staff. Expertly guided by Director James Conomos, you can rely on us to tackle any commercial issue you throw our way.
+ 61 800 525 529 jim@jcl.com.au irglobal.com/advisor/james-conomos
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