Rather than spreading resources across the entire economy, the government is prioritising the public sector and five industries where Cyprus already has strong capabilities: financial services, healthcare, tourism, legal services and shipping.
“Our new AI Strategy sets out the capabilities we need and the conditions under which we pursue that ambition,” Damianou said, highlighting the importance of building on existing institutional strengths.
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He identified education and human capital, alongside entrepreneurship and innovation, as the two foundations needed to support the strategy.
Turning AI Policy Into Practical Results
Following public consultation earlier this year, Cyprus’s national AI strategy set out objectives covering responsible AI use, public-sector modernisation, data and infrastructure, skills development, and cooperation between government, industry and research institutions.
The plan includes 16 flagship AI programmes through 2032, alongside initiatives to encourage adoption across government and strengthen workforce skills. The next challenge is implementation: translating policy into tools, systems and services that deliver tangible benefits for businesses and citizens.
That will require investment in reliable data access, computing capacity and secure infrastructure, as well as support to help smaller businesses adopt AI alongside larger enterprises.
Rethinking The Relationship Between Citizens And The State
The summit also explored AI’s broader impact on public services and governance. Damianou joined futurist Matthew Griffin, Mohamed Rashid Bin Taliah, George Tziortzis and Michalis Sophocleous for a panel on how AI is reshaping the relationship between citizens and the state.
For the government, progress will ultimately depend on whether the technology improves everyday life, rather than on strategy documents alone.
“Our task as Government is to make AI work for Cyprus, increasing productivity, strengthening the resilience of our economy and institutions, and serving our citizens better,” Damianou said.
