An association representing IT companies in Cyprus on Tuesday called for at least €1 billion in investment in artificial technology (AI) over the next five years.

“If we truly wish for Cyprus to gain a competitive advantage in AI, the investment must be analogous to our ambition,” said George Malekkos, head of Citea – the Cyprus Information Technology Enterprises Association.

“We’re talking about at least €1 billion from 2027 through to 2032, with a clearcut budget, designated officers, dates, and KPIs [Key Performance Indicators].”

Malekkos made the comments as part of the public consultation over Cyprus’ National AI Strategy 2032 – a national strategy for how Cyprus adopts AI by 2032 across government, business, healthcare and schools.

Citea proposes that the first formal assessment of the national strategy be carried out in June 2027.

“By then,” said Malekkos, “the projects implemented should be known, as will the sums channeled into the economy, the number of SMEs that adopted AI solutions, and the benefits in productivity and economic value.”

Should the goals not be attained by the first half of 2027, Citea proposes corrective action during the second half of the year.

The association also called for a distinction between R&D and AI adoption by businesses.

“Research should fund the creation of new knowledge, while innovation should lead to new products, IPs, commercialisation and exports.”

In Citea’s view, whenever a business wishes to adopt a mature AI solution “it should not have to present its project as a research programme in order to qualify for funding”.

The association moreover proposes the creation of an annual, international AI and technology event in Cyprus – comparable to the Gitex computing expo held in Dubai.

More than 100 companies are currently members of Citea.

Members include Ernst & Young Cyprus, CyTA, Deloitte, Bionic, Cablenet and Cisco.