Cyprus needs to move beyond announcing artificial intelligence ambitions and focus on integrating the technology into businesses, public services and the wider economy, Democratic Rally (DISY) president Annita Demetriou said.

Speaking at a press conference titled “Artificial Intelligence, Competitiveness and Economic Growth”, Demetriou warned that Cyprus risks falling behind despite strong public interest in AI.

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Cyprus Faces An AI Adoption Gap

More than four in 10 people in Cyprus used AI in the previous year, placing the country among Europe’s leaders in individual adoption. However, local businesses rank near the bottom in AI use, while citizens also lag in advanced digital skills.

“The problem is not the people or the businesses. It is the policy gap. And policy must close it,” Demetriou said.

She criticised the government’s ambition to make Cyprus a regional AI hub, arguing that it lacks sufficient planning for energy demand, clear budget commitments and effective workforce reskilling measures.

Six Priorities To Accelerate AI Adoption

DISY outlined six priorities to turn AI into a driver of economic growth:

1. Reskill Workers: Establish funded training programmes supported by tax incentives.
2. Support Businesses: Offer tax incentives and exemptions to encourage AI integration.
3. Attract Investment: Bring international companies with significant AI operations to Cyprus.
4. Modernise Public Services: Connect government systems, reduce bureaucracy and improve services.
5. Secure Affordable Energy: Ensure sufficient capacity and competitive electricity prices for digital infrastructure and data centres.
6. Protect Rights: Safeguard personal data, privacy and human rights through effective oversight.

“Our answer is not to stop technology. Our answer is to ensure no one is left behind. Reskilling becomes a social policy priority,” Demetriou said.

Public-Sector Reform Is Essential

Konstantinos Mountoukkos, who oversees digital policy, research and innovation on DISY’s Council for Monitoring Government Work, argued that AI adoption requires changes to public administration, not just new technology.

He called for secure interoperability between government systems, a move from pilot projects to practical implementation and stronger safeguards against inaccurate outputs, privacy breaches and cybersecurity threats.

Mountoukkos also urged the government to modernise technology procurement. Digital projects should have clear objectives, timelines and measurable results, including their cost, time savings and impact on public services.

Skills Will Determine Cyprus’s Competitiveness

Michalis Ioannidis, head of DISY’s Council for Monitoring Government Work, described AI adoption as a social policy priority. DISY spokesperson Onoufrios Koullas warned that without adequate training, Cyprus could lose ground in workforce productivity and economic competitiveness.

The party said it would present further proposals on managing the risks associated with AI and digital life at a future press conference.

The central challenge for Cyprus is to turn public interest in AI into wider business adoption, a more skilled workforce and measurable improvements in public services.