Dorita Yiannakou
The Cabinet has approved a national artificial intelligence strategy that sets goals for businesses, investment, skills, infrastructure and regulation. Its overarching ambition is for Cyprus to be recognized by 2032 as the leading AI hub in the Eastern Mediterranean and a bridge between the European Union and neighboring regions.
The Deputy Ministry of Research, Innovation and Digital Policy told Kathimerini that the strategy sees AI as a way to help businesses become more productive and competitive, develop new Cypriot products and services, create highly skilled jobs and attract investment. Businesses, researchers, universities and the government are all expected to play a part.
The strategy calls for high-quality AI training programs with international reach, connecting European expertise with demand for specialist skills in the Eastern Mediterranean.
Helping businesses adopt AI
The strategy aims for 75% of Cypriot businesses to use AI by 2030, in line with the EU’s Digital Decade target. It proposes funding, technical support, staff training and tools tailored to what businesses need.
The proposed National AI Adoption Acceleration Programme would support companies across all sectors, with an emphasis on small and midsize businesses and microenterprises. The measures under consideration include vouchers, grants to put AI tools into use, credits for cloud services and computing resources, and help integrating AI into the systems businesses already use.
A separate proposal, the National AI Compliance Funding Programme, would help businesses assess whether they are ready to meet regulatory requirements and put procedures in place to oversee how they use AI. For startups, a proposed AI Innovation Fund would support companies with strong growth potential, helping them turn new ideas into products and services they can sell and expand into international markets.
To attract private investment, the strategy also proposes an AI Sovereign Investment Matching Fund. Under the model being considered, public money would match private investment up to €1 million per company in each funding round, subject to conditions and in cooperation with institutional investors. Priority would go to companies that develop intellectual property and create jobs in Cyprus. The fund’s final terms would be settled during its design.
The strategy also aims to train at least 3,000 AI specialists by 2032. The goal is to build a workforce that can meet growing demand, help businesses put AI to use and develop new applications in Cyprus.
Five priority industries
The deputy ministry identified five areas where AI has the greatest potential to improve productivity, competitiveness and innovation: financial services and fintech, health and life sciences, tourism and hospitality, legal services, and shipping and maritime services.
Support would also extend to other parts of the economy, including trade, manufacturing, energy, agriculture and food production, construction and supply chains.
Rules and places to test new tools
The strategy treats compliance with EU rules, data protection and cybersecurity as essential to using AI responsibly. It proposes a National AI Compliance Framework to give businesses and organizations practical guidance and common methods for meeting their obligations. The framework would complement the work of regulators.
The aim is to give companies and researchers in Cyprus a place to develop, test and operate reliable AI systems that could later be used in European and regional markets. To that end, the strategy calls for a Government Innovation Hub, an AI Industrial Centre of Excellence and a National AI Cybersecurity Centre of Excellence, along with a network of facilities for testing new tools under controlled conditions.
Businesses, researchers and public bodies would be able to develop AI applications, check whether they work safely and assess their effectiveness before putting them into wider use. The facilities would also give government, industry and researchers a way to work together and turn research into tools that businesses and public services can use.
Making it easier to deal with government
The Digital Company initiative aims to simplify and automate the paperwork and other transactions businesses handle with public authorities. The proposed Government AI Accelerator and ApplyAI Programme would also help develop and put practical AI tools to use.
The strategy calls for the government to consult technology companies early and give them a chance to demonstrate what their products can do. That would allow Cypriot companies, including small businesses and startups, to show how their technology might work in public services and explore opportunities to work with the government.
