Press Releases

Demystifying and Unleashing AI Conference 

Goodmorning and great to be joining you.

I do nοt know how someone can demystify a technology that is changing so rapidly, but it is definitely worth a try. One thing is for sure, today AI defines digital, it defines our digital future to a very large extent. AI presents unparalleled opportunities for innovation, growth, and efficiency in business and public services. McKinsey estimates that Generative AI could add between $2.6 trillion and $4.4 trillion worth of annual productivity globally. It holds immense potential to change people's lives in a variety of transformative ways, whether it is through healthcare breakthroughs, environmental sustainability solutions, or even just making everyday tasks easier.

Of course, it takes a strategic approach to ensure the implementation of AI aligns with societal and ethical standards and is used to the benefit of humanity at the end of the day. Therefore, it is our duty to not only embrace AI, but to guide its integration into our society with careful planning, regulation, and transparency.

In that respect, and to open the way for innovation in trustworthy AI, Cyprus has already notified to the European Commission the national public authorities that will supervise and enforce compliance with the AI Act. Namely, the Commissioner of Communications, together with the Commissioner for Personal Data Protection, have been appointed as Market Surveillance Authorities, while the Commissioner of Communications has also been defined as the Notifying Authority and Single Point of Contact for the enforcement of the said regulation. However, talking about the European Union (EU) in general, our focus on regulating the potential impact of this technology should not hinder our capacity to foster innovation move fast and be competitive in this space –and thankfully Europe is also now embracing this– I believe the next EU AI Board meeting is going to focus on the simplification of the AI Act.

Dear friends,

Cyprus has made notable progress in the past two (2) years in this area, with the business take-up of AI in our country reaching 4.7%, still below the EU average (8%), yet showing an average annual growth of 34.5%, much higher than the EU average of 2.6%. Cyprus also ranks 35th out of 174 countries in the IMF AI Preparedness Index which touches upon a number of indicators that are due to create an environment that is conducive to growing and leveraging AI.

To leverage the full potential of AI for growth, the Government has recently formed a National AI Taskforce, chaired by the Chief Scientist for Research, Innovation and Technology, and comprising of AI experts from academia and industry. How can we leverage this technology to improve the public sector, how can we create an environment that is conducive to growing the startup ecosystem, what role can Cyprus play in this new era?

Scaling AI innovation and driving industrial adoption requires financial investment. At national level, through the Research and Innovation Foundation, a number of funding programmes are available that can be used to develop and bring advanced technology solutions, including AI, to market, while more are being planned. There are also a number of substantial funding opportunities at European level –especially now under the umbrella of the EU Competitiveness Compass– through the Horizon Europe and Digital Europe programmes, which our local ecosystem can utilise to scale AI ideas and solutions.

To further foster innovation, collaboration and development in the field of AI, Europe has also launched the AI Factories initiative, which brings together the necessary ingredients –computer power, data, and talent– to create cutting-edge AI ecosystems. Cyprus will soon be part of this ecosystem, by participating in the Greek-led AI Factory, Pharos, which will provide stakeholders with end-to-end user support, from upskilling and data provisioning to AI model training and fostering business innovation. Pharos will rely on High-Performance Computing services integrated with the DAEDALUS infrastructure. This will enable access to features such as computational resources, storage, task scheduling, high-speed network connectivity, and ready-to-use software, which will support computationally intensive AI projects and facilitate innovation across various critical domains, such as health, culture, energy and sustainability.

The Paris AI Action Summit a few weeks ago, also saw the launch of InvestAI, an EU initiative to mobilise €200 billion for investment in AI, including a new European fund of €20 billion for 4 AI Gigafactories across the continent, which will be specialised in training the most complex, very large, AI models.

Coming back to our national initiatives, the adoption of AI solutions in the public sector, remains a key challenge. It requires modernising our tech infrastructure, a project already underway, and the active involvement of the country's technology ecosystem, businesses, startups, and research organisations. In that context, and to facilitate and accelerate the use of AI for enhancing government services, we will soon announce a funding programme that specifically targets the public sector. Five million euros will be made available through the Research and Innovation Foundation to the local ecosystem to develop innovative AI solutions, in a real-world environment, that address specific challenges faced by the public sector. We are currently in the process of identifying these challenges in consultation with other Ministries and governmental authorities.

Ladies and gentlemen,

Investing in AI is no longer an option, it is a necessity for businesses and governments alike. The possibilities are limitless, and the choices we make today will define the world of tomorrow.

I am happy to see coordinated industry efforts around innovative technologies, and specifically AI, and thank you again for this invitation. It is not only about the government; it is also about the businesses, the industry players and how they measure up to the challenge.

Thank you. 

(AS/MS)