The cabinet on Tuesday approved a new National Strategy for Artificial Intelligence 2026-2032, which aims to raise the use of AI by Cypriot businesses to 75 per cent by 2032, from 9.3 per cent in 2025, and to develop at least 3,000 specialised AI professionals.
Deputy Minister of Research, Innovation and Digital Policy Nicodemos Damianou said the strategy also sets out a scenario in which national productivity could rise by up to 15 per cent and GDP by up to 12 per cent by 2032, provided the necessary investments and measures are carried out.
The strategy includes 12 flagship programmes, to be implemented by 2032. Their details, priorities and funding sources will be set with the relevant ministries and bodies as part of a three-year rolling action plan. The strategy was drawn up on the recommendations of the National Specialised Committee on Artificial Intelligence, chaired by Chief Scientist Demetris Skourides, and following a public consultation.
Damianou said the strategy was guided by the government’s ideological and political framework of social liberalism, aiming for a strong, competitive economy and a modern, effective and socially responsible state.
Priorities
Damianou said the government’s central aim was for Cyprus to become the leading AI hub in the Eastern Mediterranean by 2032, acting as a trusted European jurisdiction for developing, testing and scaling AI solutions and as a bridge between the EU and neighbouring regions.
“We do not seek to compete with the largest international ecosystems in scale,” he said. The strategy instead focuses on applying AI where it can create the most value for the country.
The public sector is the main priority, with the aim of raising productivity, cutting red tape and speeding up administrative procedures. The strategy also prioritises five sectors where, Damianou said, Cyprus already has expertise: financial services and FinTech, health, tourism and hospitality, legal services, and shipping and maritime transport.
The government also aims to make Cyprus a regional centre for AI education and training, drawing on universities, research institutions and training bodies to attract talent and leading international institutions.
Skills
The strategy provides for a national AI literacy programme for children aged six to 18, covering four age groups, under the responsibility of the Education Ministry. Damianou said the aim was to measure the development of skills and whether learning outcomes improve, rather than simply how often AI is used.
It also includes a training programme for civil servants and retraining programmes tailored to specific professions. The main initiative is FutureAI CY, a micro-credentials programme that aims to train 1,000 workers in its pilot phase. A National AI Skills Observatory will monitor labour market needs and technological developments to help shape training.
Research and infrastructure
The strategy identifies five research fields: energy and the environment; autonomous systems; security, defence and space technologies; health and life sciences; and next-generation wireless networks. Specialised sandboxes will be set up in these fields to develop, test and evaluate innovative AI applications.
It also provides for investment in computing infrastructure and for technical and operational support for ministries and public bodies, to speed up the use of AI in public administration.
Damianou said meeting the targets would require clear investment and effective implementation by both the public and private sectors, and that progress would be assessed and measures adjusted accordingly.
