Speakers at the Digital Cyprus Conference highlighted AI adoption as the nation's next core economic challenge. While local business usage lags behind the EU average, a new National AI Strategy is set for public consultation.

Global Shift from Regulation to Deployment

The practical application of Artificial Intelligence (AI) in the real economy, accelerating its adoption by businesses, and positioning Cyprus as an agile environment for the development and deployment of AI solutions were at the centre of the Digital Cyprus Conference, held on Tuesday in Nicosia.

Deputy Minister of Research, Innovation and Digital Policy, Nicodemos Damianou, said that the discussion around Artificial Intelligence has now moved beyond the boundaries of technology and has evolved into an economic, industrial and geopolitical issue.

As he noted, global developments demonstrate that governments, businesses and societies are now called upon to decide how Artificial Intelligence should be governed and deployed, stressing that the real challenge is not the development of new models, but their application to solve real-world problems.

Damianou said that the European Union has already shifted its focus from regulating Artificial Intelligence to developing the infrastructure, skills and investment needed to enable its widespread adoption, with particular emphasis on small and medium-sized enterprises.

The Adoption Gap and the New National Strategy

He noted that Cyprus performs above the European average in the overall digital transformation of businesses. However, it still lags significantly behind in AI adoption, with only 9.3% of businesses currently using AI technologies, compared with approximately 20% across the European Union.

The Deputy Minister announced that the new National Artificial Intelligence Strategy will be launched for public consultation within the coming weeks. Its key objectives include leveraging AI in high value-added sectors, improving the efficiency of the public sector, and developing a strong national innovation ecosystem around trustworthy AI solutions.

Speed as the Driver of Modern Corporate Success

For his part, George Malekkos, President of the Cyprus Information Technology Enterprises Association (CITEA), argued that Artificial Intelligence is no longer a technology of the future but rather the new driver of business competitiveness.

As he stated, "speed is the new capital," noting that AI now connects knowledge with execution, while businesses that continue to rely on traditional processes risk losing their competitive edge.

Malekkos added that Artificial Intelligence tools are already being used in software development, customer service, sales, accounting and legal services, expressing the view that in the coming years organisations will employ AI agents alongside human teams across every business department.

Survey Highlights High Perception Against Low Organizational Readiness

The findings of a new survey on AI adoption among Cypriot businesses were presented by Christina Kokkalou, Managing Director of IMR/University of Nicosia.

According to the survey, 89% of businesses in Cyprus currently use Artificial Intelligence tools, while 98% believe that their use contributes substantially to the operation of their organisations.

The survey also found that 91% consider AI adoption critical to their future competitiveness, while 87% say they possess at least a basic understanding of the technology.

However, organisational readiness remains considerably lower. Only 16% of businesses have an official AI roadmap, 20% use performance indicators to monitor AI implementation, and just 31% have appointed a person responsible for AI-related matters.

The most significant benefits identified include timesavings (90%), increased productivity (82%), content and presentation creation (84%), data analysis (74%), automation of routine tasks (57%), and applications in marketing and communications (54%).

Unprecedented Global Expansion and Local Industry Potential

Presenting Dell Technologies' international experience, Ihab El Ghazzawi said that Artificial Intelligence is being adopted faster than any previous technological transformation.

He noted that the rapid expansion of ChatGPT and generative AI applications has no historical precedent, while global investment in AI continues to grow at an exceptional pace.

He further stated that sectors such as financial services, shipping, tourism, the public sector and healthcare are among those that can make significant use of Artificial Intelligence capabilities in Cyprus.

Source: CNA(ΚΥΠΕ)