The Cabinet has approved the new National Strategy on Artificial Intelligence 2026 –2032.
The top priority of the new Strategy is for Cyprus to be recognised as the leading hub for Artificial Intelligence in the Eastern Mediterranean, while placing artificial intelligence at the heart not only of digital policy but also of the country’s broader development policy, according to a written statement by Nicodemos Damianou, Deputy Minister for 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 a strong, competitive economy and a modern, efficient and socially responsible state.
Five priorities
The first priority of the strategic framework is the aim, by 2032, for Cyprus to be recognised as the leading Artificial Intelligence hub in the Eastern Mediterranean, a trusted European jurisdiction for the development, testing and scaling up, on an international scale, of Artificial Intelligence solutions and services, and as a bridge between the European Union and neighbouring regions, Damianou said.
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 artificial intelligence models. “Our approach focuses 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 sets out clear targets, with the public sector recognised 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 prospects for growth through technology.”
A fourth point, he added, is that AI research and innovation in remain a catalyst, while five sectors have been identified in which Cyprus wishes to develop specific research activities and capabilities: Energy and Environment – Autonomous Systems – Security, Defence and Space Technologies – Health and Life Sciences – Next-generation wireless networks. “One of the objectives, amongst others, is the creation of specialised 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 use ICT responsibly, ensuring that it enhances productivity rather than quietly replacing workers. This, he explained, forms the framework for the national ICT literacy programme across four age groups between the ages of 6 and 18, under the responsibility of the Ministry of Education. “The aim is to measure skills development and the extent to which learning outcomes improve through the use of ICT, rather than simply how frequently ICT is used”.
Retraining programme for adult workers
He also spoke of the need for a retraining programme for adult workers, which should include sector-specific skills for particular professions. To this end, the FutureAI CY micro-credential programme is outlined as one of the main initiatives, with the aim of training 1,000 workers during the pilot phase, while a special training programme for civil servants is also included.
Damianou stated that this framework will be designed in detail in collaboration with the relevant existing bodies, with the Ministry of Education playing the leading role, whilst a National Skills Observatory is to be established as a mechanism to ensure that policy and practical decisions are taken to align programmes with the needs of the labour market and technological developments.
At the same time, he continued, they aim to establish Cyprus as a regional hub for education and training in Artificial Intelligence. “By utilising our universities, research institutions and training bodies, our aim is to attract talent as well as world-renowned specialist institutions, in order to develop high-quality educational programmes with international reach and a focus on the practical applications of Artificial Intelligence.”
The strategy, he continued, provides for investment in computing infrastructure, the creation of technical and operational support mechanisms for ministries and public bodies to accelerate the development and implementation of Artificial Intelligence solutions in public administration, as well as specialised structures that will provide expertise and opportunities for the development, testing and evaluation of innovative AI applications.
12 flagship programmes are proposed for implementation by 2032
He noted that 12 flagship programmes are proposed for implementation by 2032. These, he explained, will be finalised and prioritised in consultation with the relevant ministries and bodies as part of the drafting 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 out ambitious, measurable national targets such as increasing the use of Artificial Intelligence by businesses from 9.3 per cent in 2025 to 75 per cent in 2032, at least 3,000 specialised Artificial Intelligence professionals by 2032, a scenario for improving national productivity based on the spillover effects of AI, by up to 15 per cent, and an increase in GDP of up to 12 per cent by 2032.
Achieving these objectives requires clear investment and the effective implementation of the Strategy, and this is not just a matter for the Government but for all stakeholders, both private and public, he noted, adding that to this end, they will assess progress and adjust measures accordingly.
The new National Strategy on Artificial Intelligence, he said, was finalised on the basis of the recommendations of the National Expert Committee on Artificial Intelligence, under the guidance and chairmanship of the Chief Scientist, Demetris Skourides, whom Damianou thanked, along with all the members of the Committee and everyone who contributed to the public consultation.
(Source: CNA)
