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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.

EU Mercosur Agreement Sparks Political Battle Over Cyprus Agriculture

A political battleground emerged in the Parliamentary Agriculture Committee’s latest session, as fierce debates broke out over the controversial trade deal between the European Union and Latin American nations under the Mercosur framework. Lawmakers voiced deep concerns regarding food safety and the prospects for local agriculture, particularly following the high-profile absence of the Minister of Trade.

Minister Absence And Parliamentary Integrity

Committee Chair Giannakis Gabriel expressed strong disapproval over the Minister’s no-show, noting that the extraordinary session was scheduled at midday at the Minister’s own request. “His absence undermines the authority of the parliament,” Mr. Gabriel declared. Given that the Minister is not abroad, it was expected that he would be present to clarify why Cyprus supported an agreement widely criticized as disadvantaging the agricultural sector.

Trade Deal Under Scrutiny

In his address, A.C.E.L General Secretary Stefanos Stefanos described the pact as a “dangerous agreement” imposed under the pressure of multinational conglomerates. He especially critiqued the contrasting sanitary standards whereby, while the EU bans our farmers from using certain pesticides and antibiotics, the Mercosur deal appears to allow imports produced with these very substances. His remarks underscored the possibility of double standards in safety measures and the potential long-term impacts on Cypriot agriculture.

Economic And Safety Concerns

Legislators questioned the basis of government studies that justified backing the agreement, even as Cyprus’ agricultural sustainability is increasingly threatened by water scarcity and soaring production costs. Representatives from various political factions pointed to insufficient controls over import volumes and tariff structures. For example, Christos Orphanidis (DIKO) demanded precise data on imports from Latin America, citing honey as a case in point, and pressed for clear explanations regarding the tariff regime.

Legal And Health Implications

Questions about legal authority were raised by Elias Myriantounos (EDEK), who inquired whether parliament can reject or amend the agreement should economic studies forecast negative outcomes. Environmental advocates, like Haralambos Theopemptou of the Movement of Ecologists, emphasized the need to safeguard traditional products such as halloumi, highlighting concerns over how rigorous food safety controls will be maintained. Meanwhile, Linos Papagiannis (ELAM) cautioned against unfair competition, drawing parallels with challenges posed by lower-standard goods from occupied territories.

Protecting Local Interests

The overarching message from lawmakers was clear: the future of Cyprus’ farming community and the well-being of its citizens should not be sacrificed at the altar of commercial trade. Agricultural organizations have voiced alarm over the importation of goods potentially contaminated with banned substances, the risk of market distortion by low-quality products, and the lack of localized impact studies. They argue that the agreement is biased in favor of select corporate interests, ultimately undermining consumer safety and the livelihood of European farmers.

As this debate continues to unfold, the outcome of these deliberations will be pivotal in determining not only trade policy but also the long-term economic and food security landscape of Cyprus.

Parliamentary Committee Session
Economic Impact Discussion

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