The central objective of the new National Strategy for Artificial Intelligence 2026–2032, approved this afternoon by the Council of Ministers, is for Cyprus to be recognized as the leading Artificial Intelligence hub in the Eastern Mediterranean, while placing artificial intelligence at the core not only of digital policy but also of the country’s broader development policy, according to a written statement by Nikodimos Damianou, Deputy Minister of Research, Innovation, and Digital Policy.
The Deputy Minister adds that the Strategy is guided by the Government’s clear ideological and political framework—social liberalism—aimed at building a strong, competitive economy, and a modern, effective, and socially responsible state.
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As the first element of the strategic framework, Mr. Damianou stated that the goal is for Cyprus to be recognized by 2032 for Cyprus to be recognized as the leading Artificial Intelligence hub in the Eastern Mediterranean—a reliable European jurisdiction for the development, testing, and scaling up of AI solutions and services on an international scale, and as a bridge between the European Union and neighboring regions.
The second point, he continued, is that they do not seek to compete with the largest international ecosystems in terms of scale, whether in terms of infrastructure or very large AI models. “Our approach focuses emphatically on the application and adoption of Artificial Intelligence where it can create the greatest value for the country.”
A third element is that the National AI Strategy includes clear targets. The public sector is recognized as a key priority and an opportunity to increase productivity, reduce bureaucracy, and streamline administrative processes. “Five sectors of the economy are identified as key areas of focus: Financial Services and FinTech – Healthcare – Tourism and Hospitality – Legal Services and Shipping & Maritime Transport. These are sectors in which our country already possesses institutional expertise and which offer significant growth prospects through technology.”
A fourth point, he added, is that research and innovation in technology remain a catalyst, while five sectors have been identified in which Cyprus aims to develop specific research activities and capabilities: Energy and Environment – Autonomous Systems – Security, Defense, and Space Technologies – Health and Life Sciences – Next-Generation Wireless Networks. “One of the goals is to create specialized sandboxes in these sectors for the development and testing of innovative ICT solutions.”
The fifth element is that human capital is the central pillar, and the strategy includes a holistic framework for fostering knowledge, skills, and attitudes so that we can understand, critically evaluate, and responsibly use ICT, ensuring that it enhances productivity rather than silently replacing workers. This, he explained, is covered by the national ICT literacy program framework, which spans four age groups ranging from 6 to 18 years old, under the responsibility of the Ministry of Education. “The goal is to measure skill development and the extent to which learning outcomes improve through the use of digital technology, rather than simply how often digital technology is used.”
He also spoke of the need for a retraining program for adult workers, which would include sector-specific skills for particular professions. To this end, the FutureAI CY micro-credential program is outlined as one of the main initiatives, with the goal of training 1,000 workers during the pilot phase.
It also includes a special training program for public officials.
Mr. Damianou stated that this framework will be designed in detail in collaboration with the relevant existing agencies, with the Ministry of Education playing the leading role, while a National Skills Observatory is established as a mechanism to ensure that policy and practical decisions are made to align programs with the needs of the labor market and technologicaltechnological developments.
At the same time, he continued, they aim to establish Cyprus as a regional hub for education and training in Artificial Intelligence. “By leveraging our universities, research institutions, and training organizations, our goal is to attract talent as well as world-class specialized institutions, to develop high-quality educational programs with international reach and an emphasis on the practical applications of Artificial Intelligence.”
The strategy, he continued, calls for investment in computing infrastructure, the creation of technical and operational support mechanisms for ministries and public agencies to accelerate the development and implementation of Artificial Intelligence solutions in public administration, as well as specializedstructures that will provide expertise and capabilities for the development, testing, and evaluation of innovative AI applications.
He noted that 12 flagship programs are proposed for implementation by 2032. These, he explained, will be specified and prioritized in collaboration with the relevant ministries and agencies, as part of the development of a three-year rolling action plan, which will also include the identification of the necessary funding sources for the Strategy’s actions.
The strategy, he noted, sets ambitious, measurable national goals such as: (i) Increasing the use of Artificial Intelligence by businesses from 9.3% in 2025 to 75% in 2032 (ii) at least 3,000 specialized AI professionals by 2032, (iii) a scenario for improving national productivity based on the spillover effects of AI, by up to 15%, and GDP growth of up to 12% by 2032. Achieving these goals requires clear investments and effective implementation of the Strategy, and this responsibility falls not only on the Government but on all stakeholders, both private and public.
To this end, he noted, they will evaluate progress and adjust our interventions accordingly.
The new National Strategy for Artificial Intelligence, he noted, was finalized based on the recommendations of the National Expert Committee on Artificial Intelligence, under the guidance and chairmanship of Chief Scientist Dimitris Skouridis, whom Mr. Damianou thanked, along with all the members of the Committee and everyone who contributed to the public consultation.
Source: CNA
