Artificial intelligence is already reshaping the economy, labour market and education, but human judgment and values will remain essential, Deputy Minister of Research, Innovation and Digital Policy Nicodemos Damianou said on Thursday during the University of Cyprus postgraduate graduation ceremony.

Speaking to graduates, Damianou said AI is no longer a prospect or a theoretical discussion, but a technology that is already influencing Cyprus’ economy, workforce and competitiveness.

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The Real Question Is Human, Not Technological

“The essential question remains the same and more important than ever: how do we ensure that technology serves humans and not the other way around?” Damianou said.

He referred to recent discussions at the G7, where world leaders met executives from major AI companies, including OpenAI, Google DeepMind and Anthropic. Damianou also cited OpenAI chief executive Sam Altman’s warning that governments should not outsource their responsibilities to AI companies.

According to the deputy minister, the challenge is not only to develop more advanced AI systems, but also to ensure they serve people, democracy and society.

Why Cyprus Must Move Quickly

Damianou said preparing the workforce for technological change will be critical to Cyprus’ future competitiveness.

Citing World Economic Forum estimates, he noted that around 39% of existing skills are expected to change or become less relevant by 2030, while six in 10 workers will require training or retraining within the next five years. He said those figures underline the importance of continuous learning throughout a person’s career.

Universities As Engines Of Adaptation

Universities, Damianou said, have an important role to play not only in producing knowledge, but also in helping societies innovate and adapt to change.

He described the University of Cyprus as the country’s leading institution for research, innovation and knowledge creation, highlighting its research activity, international partnerships and contribution to developing highly skilled talent. He also referred to the university’s continued presence in the QS World University Rankings 2027.

Policy, Talent And The Innovation Economy

Turning to government policy, Damianou said Cyprus is working to build a more competitive, outward-looking and technology-driven economy by strengthening links between research and business, supporting the responsible use of new technologies and promoting entrepreneurship.

He also referred to the Minds in Cyprus initiative, which aims to encourage Cypriot scientists and professionals living abroad to return and contribute to the country’s development.

According to Damianou, the objective is to ensure that young professionals have genuine opportunities to build their careers in Cyprus. “When I chose as a young scientist to return to Cyprus, the conditions and opportunities that exist today did not exist,” he said.

Cyprus Is Expanding Its Innovation Economy

Damianou said Cyprus has made significant progress in recent years. He pointed to the country’s highest economic growth rate in the European Union during the first quarter of 2026 and said the technology sector now accounts for around 15% to 16% of GDP, making it the fastest-growing part of the economy.

He also said Cyprus’ startup ecosystem has recorded the highest growth rate in Europe for the third consecutive year, with five times more startups than in 2020.

According to Damianou, Cyprus has strengthened its position as an emerging regional hub for innovation and technology.

Character Still Matters In The Age Of AI

Concluding his address, Damianou told graduates that technological progress does not diminish the importance of human judgment and values.

Using Michael Jordan as an example, he said success is shaped not by individual setbacks, but by the ability to keep moving forward despite uncertainty.