Cyprus tech body seeks €1bn AI programme by 2032

Economy artificial intelligencetechnologyTop News Cyprus tech body seeks €1bn AI programme by 2032 Ai Artificial Intelligence Concept 2852917075159 29 Relevant News Cyprus tech body seeks €1bn AI programme by 2032 1 September 2026 Cyprus sees almost six divorces a day, over half involve couples with no children 1 September 2026 Erhurman meets grieving Kyrenia families, rejects doubts over death toll 1 September 2026 newsroom 1 September 2026 FacebookXWhatsAppEmailPrintViber The Cyprus IT Enterprises Association (CITEA) has proposed creating a National Investment Programme worth at least €1 billion for artificial intelligence covering 2027-2032, calling for a specific budget, clear timelines and measurable performance indicators. The proposals were submitted as part of the public consultation on the National AI Strategy 2032 and were shaped, according to the association, following a survey of its members and contacts with businesses expected to implement AI solutions. CITEA said it welcomed the Strategy’s general direction and congratulated the Republic of Cyprus’s Chief Scientist, Demetris Skourides, and his team for the groundwork. It said, however, that it was unhappy at not having been involved in shaping the process from the outset. Investment with clear results The association’s central position is that the next phase must focus on implementation, with the active participation of Cyprus’s technology industry in decisions on funding, AI adoption programmes, and setting priorities and performance indicators. “If we really want Cyprus to gain a competitive advantage in AI, then the investment has to match our ambition. We’re talking about at least €1 billion from 2027 to 2032, with a clear budget, people responsible, dates and KPIs. It’s not enough to say what we want to do. We have to be able to show what we did and what the result was,” CITEA President Giorgos Malekkos said. The association proposed holding the first official evaluation in June 2027. By then, it said, the number of projects completed, the amounts channelled into the economy, the SMEs that adopted AI solutions, and the pilot projects that moved into production should all be known. It also called for measuring productivity growth and the economic value created, suggesting that if targets are missed in the first half of 2027, corrective measures should be taken within the second half of the year. Separating research, innovation and adoption CITEA proposed a clear separation between research, innovation and business adoption of artificial intelligence. Under its proposal, research should fund the creation of new knowledge, while innovation programmes should lead to the development of new products, intellectual property, commercialisation and exports. Adoption schemes, by contrast, should help businesses implement readily available AI solutions to increase productivity, sales and competitiveness. The association argued that businesses wanting to deploy mature technology solutions should not be required to present their investments as research programmes in order to secure funding. 5% cap on consultants The association recommended capping spending on external consultancy services at 5% of the total budget, both at national programme level and for individual large projects. On a €1 billion programme, it noted, this would amount to €50 million, meaning the large majority of resources should go towards project implementation, businesses, infrastructure and skills development. It also called for strict rules to prevent conflicts of interest, so that companies advising the state on project design, technical specifications or funding programmes do not gain an advantage in the contracts that follow. SME committee and skills training To speed up AI adoption among small and medium-sized businesses, CITEA proposed creating a dedicated AI Adoption for SMEs committee involving the state and business bodies, with the association seeking a leading or coordinating role. The goal, it said, is for funding programmes to reflect businesses’ real needs and lead quickly to the practical application of AI solutions. CITEA also called for indicators measuring customer experience, such as service time, satisfaction, personalisation of services, multilingual support, reduced complaints and higher conversion of interest into sales. Particular emphasis was placed on the need for continuous upskilling of developers, data professionals, cloud engineers, cybersecurity specialists, analysts and consultants. The association called for training programmes in new AI applications, machine learning, data engineering, responsible AI use, cybersecurity, cloud computing and the commercial application of related solutions. Strengthening the local tech sector The association proposed including the ICT and software sectors as a standalone strategic sector in the National Strategy. According to CITEA, Cyprus needs to both promote AI adoption across the economy and build an exportable Cypriot AI industry. It further called for retail and wholesale trade to be included among the strategic sectors, pointing to their connection with tourism and the overall visitor experience. CITEA also proposed that, within the European and Cypriot public procurement framework, Cypriot companies with mature AI solutions be given a genuine opportunity to present and demonstrate their technology’s capabilities. It suggested that evaluations should also take into account the economic value retained in Cyprus. Public administration, it added, could act as a first customer for local companies, helping them secure reference projects to promote their products abroad. Proposal for an international event in Cyprus Among the proposals was also the organisation of a major annual international AI and technology conference in Cyprus, with ambitions comparable to international events such as GITEX. The goal would be to attract international technology companies, investors, startups, buyers, governments, media and speakers, creating opportunities for business partnerships and exports. “The National AI Strategy 2032 is a very good foundation. Now we need to move to the next stage. We need funding, people responsible, KPIs and fast decisions. And at this stage, CITEA and Cyprus’s technology industry need to be in the room where decisions are made,” Malekkos said. 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