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Rapid Boost In European AI Adoption Highlights Cyprus’ Challenges

According to recent data from Eurostat, artificial intelligence adoption among European enterprises reached new heights in 2025. However, while the European Union continues to witness remarkable progress, Cyprus remains notably behind the continental average.

EU Growth Momentum

Across the bloc, approximately 20 percent of enterprises with at least 10 employees implemented AI technologies in 2025. This strong 6.5 percentage point increase from 13.5 percent in 2024 underscores the accelerating momentum among businesses in embracing digital tools to drive innovation and efficiency.

Cyprus’ Lagging Performance

Despite steady improvements over the past four years, Cyprus recorded an AI adoption rate of only 9.27 percent in 2025, significantly lower than the EU-27 average of 19.95 percent. This gap of more than 10 percentage points positions Cyprus just above countries like Greece, Bulgaria, Poland, Turkey (7.41 percent), and Romania, thereby highlighting a persistent challenge for Cypriot enterprises.

Historical Perspective And Comparative Analysis

In 2021, Cyprus’ AI adoption was a modest 2.59 percent, compared to an EU-27 average of 7.65 percent. Although by 2023 Cyprus had increased its rate to 4.67 percent—with the EU average at 8.06 percent—the disparity remained evident. By 2024, as the EU surged to 13.48 percent and Cyprus reached 7.90 percent, the performance gap widened further. In 2025, despite Cyprus more than tripling its 2021 rate, the divide continued to grow.

Country Leaders And Innovative Trends

The data reveals stark contrasts among EU nations. Leaders such as Denmark, Finland, and Sweden reported adoption rates of 42.0 percent, 37.8 percent, and 35.0 percent respectively. Meanwhile, nations like Romania (5.2 percent), Poland (8.4 percent), and Bulgaria (8.5 percent) trailed behind, with Cyprus falling just above these lower figures. Additionally, nearly all EU countries reported increases in AI usage, with Denmark, Finland, and Lithuania registering the most significant gains.

Key Applications Driving Adoption

The analysis further indicates that the most common application of AI was in analyzing written language, used by 11.8 percent of businesses. This was followed by generating multimedia content (9.5 percent), creating written or spoken language (8.8 percent), and converting spoken language into machine-readable formats (7.2 percent). Notably, the analysis of written language experienced the fastest growth compared to 2024, increasing by 4.9 percentage points.

This trend clearly demonstrates AI’s transition from a nascent technology to an integral component of business strategy across Europe, even as some markets like Cyprus continue to grapple with broader digital integration challenges.

Cyprus Income Distribution 2024: An In-Depth Breakdown of Economic Classes

New findings from the Cyprus Statistical Service offer a comprehensive analysis of the nation’s income stratification in 2024. The report, titled Population By Income Class, provides critical insights into the proportions of the population that fall within the middle, upper, and lower income brackets, as well as those at risk of poverty.

Income Distribution Overview

The data for 2024 show that 64.6% of the population falls within the middle income class – a modest increase from 63% in 2011. However, it is noteworthy that the range for this class begins at a comparatively low threshold of €15,501. Meanwhile, 27.8% of the population continues to reside in the lower income bracket (a figure largely unchanged from 27.7% in 2011), with nearly 14.6% of these individuals identified as at risk of poverty. The upper income class accounted for 7.6% of the population, a slight decline from 9.1% in 2011.

Income Brackets And Their Thresholds

According to the report, the median equivalent disposable national income reached €20,666 in 2024. The upper limit of the lower income class was established at €15,500, and the threshold for poverty risk was set at €12,400. The middle income category spans from €15,501 to €41,332, while any household earning over €41,333 is classified in the upper income class. The median equivalents for each group were reported at €12,271 for the lower, €23,517 for the middle, and €51,316 for the upper income classes.

Methodological Insights And Comparative Findings

Employing the methodology recommended by the Organisation for Economic Co-operation and Development (OECD), the report defines the middle income class as households earning between 75% and 200% of the national median income. In contrast, incomes exceeding 200% of the median classify households as upper income, while those earning below 75% fall into the lower income category.

Detailed Findings Across Income Segments

  • Upper Income Class: Comprising 73,055 individuals (7.6% of the population), this group had a median equivalent disposable income of €51,136. Notably, the share of individuals in this category has contracted since 2011.
  • Upper Middle Income Segment: This subgroup includes 112,694 people (11.7% of the population) with a median income of €34,961. Combined with the upper income class, they represent 185,749 individuals.
  • Middle Income Group: Encompassing 30.3% of the population (approximately 294,624 individuals), this segment reports a median disposable income of €24,975.
  • Lower Middle And Lower Income Classes: The lower middle income category includes 22.2% of the population (211,768 individuals) with a median income of €17,800, while the lower income class accounts for 27.8% (267,557 individuals) with a median income of €12,271.

Payment Behaviors And Economic Implications

The report also examines how income levels influence repayment behavior for primary residence loans or rental payments. Historically, households in the lower income class have experienced the greatest delays. In 2024, 27.0% of those in the lower income bracket were late on payments—a significant improvement from 34.6% in 2011. For the middle income class, late payments were observed in 9.9% of cases, down from 21.4% in 2011. Among the upper income class, only 3% experienced delays, compared to 9.9% previously.

This detailed analysis underscores shifts in income distribution and repayment behavior across Cyprus, reflecting broader economic trends that are critical for policymakers and investors to consider as they navigate the evolving financial landscape.

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