**Call for Investment in AI: Cyprus IT Association Seeks €1 Billion Over Five Years**
On Tuesday, the Cyprus Information Technology Enterprises Association (Citea) urged the government and private sector to invest at least €1 billion in artificial intelligence (AI) over the next five years. This call for substantial financial commitment comes as part of the ongoing public consultation regarding Cyprus’ National AI Strategy 2032, which aims to integrate AI across various sectors, including government, business, healthcare, and education.
George Malekkos, the head of Citea, emphasized the necessity of aligning investment with the ambition to establish Cyprus as a competitive player in the AI landscape. “If we truly wish for Cyprus to gain a competitive advantage in AI, the investment must be analogous to our ambition,” he stated. Malekkos outlined that the proposed investment should span from 2027 to 2032 and include a well-defined budget, designated officers, timelines, and Key Performance Indicators (KPIs) to measure progress.
Citea has suggested that the first formal assessment of the national AI strategy take place in June 2027. By that time, the association expects to have a clearer picture of the projects implemented, the financial resources allocated to the economy, the number of small and medium-sized enterprises (SMEs) that have adopted AI solutions, and the overall benefits in productivity and economic value. Malekkos indicated that if the established goals are not met by mid-2027, Citea advocates for corrective actions to be taken in the latter half of the year.
In addition to financial investment, Citea has called for a clear distinction between research and development (R&D) and the adoption of AI by businesses. According to the association, funding for research should focus on generating new knowledge, while innovation should concentrate on developing new products, intellectual properties (IPs), and facilitating commercialization and exports. Malekkos argued that businesses seeking to implement mature AI solutions should not be required to frame their projects as research initiatives in order to qualify for funding.
Citea also proposed the establishment of an annual international AI and technology event in Cyprus, similar to the Gitex computing expo held in Dubai. This event could serve as a platform for showcasing advancements in technology and fostering collaboration among industry players.
With over 100 member companies, Citea represents a significant segment of the IT sector in Cyprus, including major firms such as Ernst & Young Cyprus, CyTA, Deloitte, Bionic, Cablenet, and Cisco. The association's call for investment reflects a growing recognition of the importance of AI in driving economic growth and enhancing the competitiveness of the Cypriot economy.
As the public consultation on the National AI Strategy continues, the response from various stakeholders will be crucial in shaping the future of AI in Cyprus. The proposed investment and strategic initiatives could position Cyprus as a leader in AI adoption and innovation in the region, provided that the necessary resources and commitment are mobilized.