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CYPRUS IN THE AGE OF AI:�STRATEGY, OPPORTUNITY & ACTION.

Demetris Skourides

Chief Scientist for Research, Innovation and Technology of the Republic of Cyprus.

Chairman of the National AI Taskforce.

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Leapfrog Effect intended to Create a Sustainable Innovation driven Economy

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Re-imagining the AI Future

The Information shared in the presentation is a draft direction and not intended to influence, or impose AI decisions influencing investment decisions. The Deputy Minister of Digital Policy Research and Innovation is accountable for Policy matters and responsible to ensure that the Strategic document is inline with EU requirements given that strategic direction and implementation timelines may change to align with EU prioritities subject to the discretion of the Deputy Ministry

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Re-imagining the AI Future

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What Will It Do for US?

Do We Need AI to Truly Transform the Customer Experience for the Better?

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Digital Will Eat Software!

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Cloud 1st, Mobile 1st, AI 1st Policies - Goal

Futureproofing Cyprus

R&I

Data

Infrastructure

Talent

GTM Support

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Futureproofing Cyprus: 2035 Vision

Israel

Saudi

Arabia

Abu

Dhabi

Dubai

Others

Gateway Hub

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CC

Enablers

How we Futureproofing Cyprus For Digital?

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�Where are We Today?

AI in Gov’t Call (Q2 2025, 5m€): to support the development of innovative Artificial Intelligence (AI) solutions addressing challenges faced by public sector entities.

AI Taskforce: a National Specialised Committee on Artificial Intelligence; established in January 2025 by the Council of Ministers. Its responsibilities include shaping the country’s AI strategy and action plan.

AI Act: Alignment with Regulation (EU) 2024/1689 and establishment of the governance framework in January 2025 through the designation of a Notifying Authority and Market Surveillance Authorities

AI Factories: Participation of Cyprus’ AI Factory “Pharos” opening opportunities for infrastructure access.

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Futureproofing Data platform

  • Aim: To establish a comprehensive data management framework in Cyprus through
  • the integration of relevant European regulations, directives, and policies
  • the development of a robust Data Policy and Governance System

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At a minimum, the following will be taken into consideration:

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  1. Regulation (EU) 2022/868 on European data governance and amending Regulation �(EU) 2018/1724 (Data Governance Act - DGA).
  2. Regulation on harmonized rules on fair access to and use of data (Data Act).
  3. Directive (EU) 2019/1024 on open data and the re-use of public sector information.
  4. Regulation (EU) 2018/1807 on a framework for the free flow of non-personal data in the European Union.

Public and Private Sector

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EU AI Act – An Overview

Definition of AI Systems

The European Commission's new guidelines define AI system as:

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  • Software that is developed with machine learning, logic-based approaches statistical techniques or
  • Capable of influencing environments by making predictions, recommendations or decisions

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Why does this matter?

  • The definition determines regulatory obligations for businesses developing AI
  • Covers a broad range of AI applications, including automation and deep learning

Classification of AI System

The EU AI Act adopts a risk-based approach:

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  • Unacceptable Risk: Prohibited AI applications �(i.e. Social Scoring by Governments, Subliminal Manipulation, AI Predictive Policing)
  • High Risk: Subject to strict compliance (i.e. Biometric Identification, Credit Scoring)
  • Limited Risk: Transparency obligations (i.e. Chatbots, Deepfake Disclosures)
  • Minimal Risk: No specific obligations (i.e. Al-powered recommendation engines)

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EU AI Act – An Overview

What does the EU AI Act aim to achieve?

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  • Foster innovation while protecting fundamental rights
  • Create a harmonised AI regulatory environment across the EU
  • Build public trust in Al technologies
  • Ensuring transparency, accountability, and human oversight
  • Managing risks related to AI applications
  • Encouraging responsible innovation

EU AI Act Implementation Timeline

  • 2 February 2025 Prohibited AI practices become enforceable
  • 2 August 2025 AI governance structures begin taking shape
  • 2 February 2026 | High-risk AI obligations come into force
  • 2 August 2026 | AI regulatory sandboxes must be operational
  • 2 August 2027 | General-purpose AI model compliance deadline
  • 31 December 2030 | Final compliance deadline for existing high-risk AI systems

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What to Expect by 2026

  • Digital Citizen
  • Digital Assistant
  • AI for Government program - AI Apps & Use-cases*
  • New AI Companies, Startups i.e. Tenstorrent
  • AI Strategy 2025 End
  • Public Sector Productivity Boost
    • AI Automation*
    • Digital Advisor for Policy & Decision Insight for Chief Scientist*
  • Vision: Personalized Digital Citizen 2028 (TBD)

* Select use-cases / industry

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Our Approach

  • Draft Version of Stratey Mid September 2025
  • Review Existing AI Strategy documents – GR, UK, FR, UAE
  • Leverage MoU & Best practice from Advanced countries: Israel, UAE, Singapore
  • Assessing & Prioritizing Focus Areas of AI Research
  • Identify & Assess Areas of High Potential Wins – Linked to CY Economy
  • Change Management: Workforce development & Education in the Age of AI (Ecosystem)
  • What is Required: Infrastructure, Technology (Ecosystem)
  • Prioritize Use case adoption per Industry - PS
  • Legal & IP opportunities

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Q&A