Artificial intelligence is advancing at a pace that surpasses every previous technological shift, transforming economies, business competitiveness and public policy. The discussion is no longer centred solely on the capabilities of the technology itself, but primarily on how governments and organisations will harness it to create real value.
Speaking at the 5th Digital Cyprus Conference 2026, organised by CITEA and IMH, Dr Nicodemos Damianou, Deputy Minister of Research, Innovation and Digital Policy, outlined Cyprus' artificial intelligence strategy, linking international developments with the country's priorities and the future prospects of the Cypriot economy.
During his address, he said that artificial intelligence has now evolved into an economic, industrial and geopolitical issue, with governments being called upon to shape the framework within which it will develop and be deployed. As he noted, the real value of AI does not lie in the models themselves, but in the ability of businesses and organisations to apply them to solve real-world problems and generate measurable business outcomes.
At the same time, he stressed that Europe possesses a strong scientific foundation and substantial human capital in the field of artificial intelligence. However, it continues to face challenges, including the fragmentation of the Single Market and the need to simplify the regulatory framework. He also referred to new European initiatives aimed at accelerating both the development and, above all, the adoption of artificial intelligence by businesses, with particular emphasis on small and medium-sized enterprises (SMEs).
Strong digital infrastructure
Damianou made particular reference to Cyprus' progress, highlighting that the country now boasts robust digital infrastructure, a rapidly expanding technology ecosystem, significant foreign investment in the technology sector, and one of Europe's fastest-growing start-up ecosystems.
At the same time, he pointed out that, despite the high level of digital maturity among Cypriot businesses, the adoption of artificial intelligence solutions still lags behind the European average, creating considerable opportunities for future growth.
The new National Artificial Intelligence Strategy
The Deputy Minister also presented the key pillars of the new National Artificial Intelligence Strategy, which prioritises the use of AI in high value-added sectors, the enhancement of public sector operations, and the creation of a strong innovation ecosystem.
Within this framework, he referred to the development of the Pharos-CY AI Factory infrastructure, the new computing capabilities becoming available to businesses and researchers, and initiatives designed to encourage collaboration between the public and private sectors in developing practical artificial intelligence applications.
Agility is the key
In closing, he noted that Cyprus is not seeking to compete with larger economies in terms of scale, but rather to leverage its agility in order to become one of Europe's most attractive destinations for the development, testing and deployment of trustworthy artificial intelligence solutions.
As he aptly remarked, success will not be determined by who creates the technology, but by who succeeds in applying it effectively and transforming innovation into genuine economic value.
(Source: InBusinessNews)
