Cyprus Makes Strides in Digital Transformation, But Digital Skills Remain a Key Challenge

Cyprus Makes Strides in Digital Transformation, But Digital Skills Remain a Key Challenge

EU Report Calls for Stronger Digital Skills Development

Cyprus is making significant headway in digital connectivity, artificial intelligence (AI), and the digitalization of public services, according to the European Commission’s Digital Decade 2025 report. However, the report emphasizes that improving the population’s digital skills remains essential to fully achieving digital transformation goals.

The report evaluates the progress of EU member states toward the 2030 Digital Decade targets. Cyprus, in particular, has shown measurable progress in connectivity and the adoption of digital technologies by businesses—especially in the area of AI. The country has also advanced in digital public services and access to electronic health data.

According to the Deputy Ministry of Research, Innovation, and Digital Policy, Cyprus has already implemented 63% of the Commission’s 2024 recommendations through new reforms and strategic initiatives.

Yet, the report underscores a pressing issue: the need to enhance digital skills across all demographics to ensure inclusive participation in the digital era.

Connectivity and AI Integration Outpace EU Average

Cyprus demonstrates exceptional performance in digital connectivity, with 100% 5G network coverage and 89.1% coverage in fixed gigabit networks (VHCN and FTTP)—a 15.5% increase over the previous year. These achievements reflect the country’s rapid deployment of modern telecommunications infrastructure.

Moreover, 74.3% of small and medium-sized enterprises (SMEs) in Cyprus possess at least a basic level of digital intensity, surpassing the EU average. AI adoption has surged by 69.2%, progressing faster than the EU average, highlighting a strong push toward business digitization.

Employment in the ICT sector remains stable, with female participation at 23.7%, significantly above the EU average of 19.5%.

Digital Public Services Improve, but Digital Skills Lag Behind

The report indicates that 49.5% of the population in Cyprus has at least basic digital skills, but disparities remain across age and education levels. This highlights the need for targeted training and greater public awareness.

Cyprus is narrowing the gap with the EU average in the provision of digital public services to citizens, supported by new tools such as the gov.cy portal, the Digital Citizen app, the AI-powered Digital Assistant, and the introduction of the national electronic ID (IDme.cy).

Additionally, access to electronic health data improved by 10%, though it still trails behind the EU average.

In cybersecurity, Cyprus has made measurable progress, with broader public awareness initiatives and the adoption of new standards and protocols to address existing challenges.

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