Cyprus makes strides in connectivity but lags in AI adoption

EU report highlights mixed progress in Cyprus digital transformationCyprus has made progress in digital public services, connectivity and business digitalisation, but still needs to make online state services easier, more inclusive and better connected, according to the European Commission’s 2026 state of the digital decade report. The Commission’s latest report on Cyprus, published in June, presents a mixed picture: an island with a strong digital base and improving public services, but one still facing gaps in digital skills, artificial intelligence uptake and cross-border digital services. According to the report, Cyprus has extensive gigabit connectivity coverage, including in rural areas, while 5G coverage was fully achieved in 2024. It also noted that three-quarters of SMEs have reached at least a basic level of digital readiness, with businesses using advanced technologies such as cloud and data analytics. At the same time, however, the Commission said the uptake of artificial intelligence by businesses remains low, warning that this could affect competitiveness if Cyprus does not move faster. Cyprus is already moving further into digital government. The Commission said the island is advancing in digital public services, while an AI-powered chatbot has been launched to streamline access. However, it also called on Cyprus to accelerate the implementation of its strategy for the digitalisation of public services, with a focus on seamless and inclusive access for all citizens. The issue is particularly important as more people in Cyprus turn to online public services to avoid bureaucracy, save time and deal with official procedures without having to visit government offices. According to Eurostat’s latest e-government data, 70.1 per cent of people in Cyprus aged 16 to 74 used websites or apps of public authorities in 2025, just below the EU average of 72 per cent. This means Cyprus is close to the European average, but still some distance from the bloc’s most advanced digital public service users. Denmark recorded the highest share, at 98 per cent, followed by the Netherlands, Finland and Sweden, all at 96 per cent, and France at 91 per cent. At the other end of the scale, Romania stood at 24 per cent and Bulgaria at 36 per cent. The data cover a broad range of online interaction with the state, from tax returns and changes of address to social benefits, identity documents, birth certificates, public education services, school and university enrolment, public libraries, hospital services and other public health services. For Cyprus, the figures point to a shift that has been felt for some time in daily life. Citizens increasingly expect to be able to complete basic procedures online, while businesses, employees and households are less willing to lose time in queues or deal with fragmented paperwork. This is also where the EU’s Digital Decade targets become relevant. By 2030, all basic public services across the bloc are expected to be available online, all citizens should have access to their electronic medical records, and 80 per cent of citizens should use an electronic identification solution. In practical terms, this means digitalisation is no longer just a matter of convenience. It is becoming part of how governments are expected to operate, how citizens prove who they are, how they access health information and how they deal with the public sector. Cyprus’ performance in online health searches is particularly striking. In 2025, 60 per cent of EU citizens aged 16 to 74 said they used the internet to search for health-related information. Cyprus was among the highest in Europe, with 81 per cent of people searching for health information online, the same as the Netherlands and just behind Finland at 82 per cent. The island also recorded one of the EU’s highest shares for people searching online for physical health information, at 80 per cent. At the same time, 62 per cent of people in Cyprus searched for mental health information online, the second-highest share in the EU after Sweden, which stood at 64 per cent. The figures showed that Cypriots are going online to deal with the state, but are also using digital tools for more personal decisions linked to health, wellbeing and access to information. This trend may partly reflect convenience, but it also points to a wider change in behaviour. For many citizens, the internet has become the first place they turn to before speaking to a professional, visiting a clinic or navigating public health services. The Commission’s latest country report said e-health records are accessible through an online portal in Cyprus, but added that a national mobile health app is still under development. It recommended that Cyprus fast-track ongoing projects to deliver mobile app services and ensure inclusive access to e-health services. That raises both opportunities and risks. On one hand, stronger digital health access can help people become better informed and more engaged in their own care. At the same time, it places greater pressure on public authorities to make reliable, official and easy-to-understand health information available online, especially when searches concern mental health, symptoms or treatment options. The broader picture across Europe also shows that digitalisation depends heavily on skills. In 2025, 60 per cent of EU citizens had at least basic digital skills, according to Eurostat’s digital skills data. Of those, 31 per cent had basic overall digital skills, while 29 per cent had skills above basic level. This remains below the EU’s 2030 target of 80 per cent of the population having at least basic digital skills, underlining the gap between Europe’s ambitions and the ability of citizens to fully use the services being created for them. The differences are also clear across age, gender, education and employment status. Among younger people under the age of 45, women were more likely than men to have at least basic digital skills. Among people aged 45 and over, the pattern was reversed, with men recording higher shares. The gap was most visible among people aged 65 to 74, where the share of women with at least basic digital skills was nine percentage points lower than that of men in the same age group. Education was another decisive factor. The higher the level of education, the greater the share of people with at least basic digital skills. Among people with tertiary education, 82 per cent had at least basic overall digital skills, with 30 per cent at basic level and 50 per cent above basic. The same divide was visible depending on labour market status, suggesting that people outside education or employment may be more exposed to digital exclusion. For Cyprus, this matters because digital government cannot work properly if part of the population struggles to use it. The Commission’s 2026 report said the country’s digital skills gap is narrowing, but disparities persist depending on education level and age. It recommended more targeted initiatives for groups most in need, so digital skills development does not leave older citizens or people with lower levels of formal education behind. Public support for digital change is strong, but not unconditional. According to the 2026 Digital Decade Eurobarometer, 89 per cent of Cypriots consider digital policy a high EU priority. At the same time, 95 per cent said protecting online privacy and security should be a top priority for the next decade, while 92 per cent pointed to making digital tools more accessible for everyone and using technology to make everyday life easier. The same survey showed that 93 per cent of respondents in Cyprus support stronger online protection for children and young people. Artificial intelligence is another area where citizens appear open to digital progress, but cautious about the risks. The Commission said 86 per cent of Cypriots agree that AI development should be carefully regulated to ensure safety, even if this may constrain developers. When it comes to generative AI tools, the main concerns cited in Cyprus were privacy and data protection, mentioned by 42 per cent, followed by accuracy and incorrect information at 41 per cent, and ethical issues or potential misuse at 29 per cent. The findings suggest that Cypriots are not against digitalisation. Rather, they want it to be safe, useful and properly controlled. Funding will also play a role in how quickly the country can move. Cyprus’ national Digital Decade roadmap includes 62 measures with a total budget of €0.98 billion, equivalent to 2.96 per cent of GDP, according to the Commission. Half of these measures are set to expire by the end of 2026, corresponding to €117 million of public funding. The Commission also said €300m from Cyprus’ recovery and resilience plan contributes to advancing the country’s digital transformation, while the estimated total economic impact of digital investments from the plan stands at €189m. A further €100m from cohesion funds is also contributing to the country’s digital transition. The expansion of online services may reduce bureaucracy for many people, but it can also make everyday interaction with the state more difficult for older citizens, people with lower digital skills or those without regular access to technology. This is why the next stage of digital transformation cannot only be about launching more platforms. It must also be about making them simple, reliable and accessible. Cyprus has already shown that citizens are willing to use digital tools, particularly when they make their lives easier. The challenge now is to ensure that digital public services do not simply replace old bureaucracy with new digital confusion. If the state wants people to move online, the process must feel faster, safer and clearer than the system it is replacing.