Bringing AI to the workplace: How Cyprus can catch up and ride the wave of change

There was a time when Artificial Intelligence (AI) seemed like a concept from a distant future or a galaxy far, far away, especially for Cyprus. Today, however, AI is already reshaping workplaces, promising better salaries, and increased opportunities.

Studies have shown that, even in emerging markets, automating routine tasks is expected to unlock the potential of lower-skilled workers. Cyprus can also benefit significantly by investing in education, especially in STEM graduates, and through training and upskilling for existing workers. To take advantage of this global growth, the country must quadruple its rate of reskilling, upskilling, and AI adoption over the next five years.

According to a survey by tech consultancy Access Partnership and Amazon Web Services, workers with AI skills are expected to see at least a 30% increase in pay.AI is becoming an emerging career path, as seen by the rise in positions within companies such as AWS, Meta, Google, and others across Europe.

AI's ability to increase productivity through automation, optimize decision-making with advanced analytical tools, and drive innovation in products and services is expected to boost sectors like financial services, healthcare and automotive, potentially contributing up to $13 trillion globally by 2030, according to a recent analysis by McKinsey & Company. Cypriot companies, particularly in financial services, can ride on this wave of growth.

However, digitization levels in both the public and private sectors in Cyprus are much lower compared to other developed countries. In 2021, 70% of Cypriot SMEs had at least a basic level of digital intensity, 42.3% used social media, and 42.2% cloud storage. Yet, the use of e-invoices remained low (13.1%), and cutting-edge technologies were underutilized, with only 6.2%of businesses using big data and a mere 2.6% leveraging AI.

The lag in technology adoption, however, presents significant opportunities for university graduates returning to Cyprus with STEM degrees, or for students pursuing new ambitious AI specialisation programmes in Cypriot universities, particularly in fields such as the environment, energy, and critical infrastructures. For workers already in the job market, support engineers who invest in AI skills can expect salary increases of up to 30%, supported by government incentives. The implementation of Cyprus’s AI strategy is expected to attract innovation-driven companies and multinationals, while boosting productivity and revenues across industries such as healthcare, retail, hospitality, financial services, gaming, adtech and martech.

To achieve this, Cyprus needs a detailed strategy that can transform employees from simple participants in the value creation process, to stakeholders and agents of change, with real benefits. The government is already providing subsidized and free of charge trainings programs for employees and knowledge workers through the Human Resource Development Authority, while local universities are offering scholarships for bachelor’s and master’s degrees, focused on AI. Affordable online training resources, such as Coursera.org, Udemy, LinkedIn, AWS, Microsoft, Oracle, and Google AI, are also widely available.

Events like hackathons and international conferences showcase how innovative technologies can boost productivity and drive innovation. For example, the Hackathon event held in Limassol this June, focused on financial services, where participants developed applications aimed at making these services more accessible, efficient, and responsive.

Additionally, as part of a recent initiative by the Research and Innovation Foundation of Cyprus (RIF), seven teams made up of RIF employees developed twenty proposals aimed at improving productivity, saving time, and enhancing customer service. This initiative highlights RIF’s commitment to promoting innovation and integrating cutting-edge technologies into its processes, while fostering employee collaboration and creativity.

RIF has also established an "AI Taskforce" team to explore the ethical dimensions and potential risks associated with AI in the workplace. The taskforce aims to address concerns about job loss and data privacy, ensuring that AI applications are transparent, fair, and accountable. The taskforce is comprised of five highly qualified employees tasked with monitoring these practices.

As companies and organizations navigate this technological revolution, it's important to understand the multifaceted impact of AI on productivity, employee engagement, and organizational culture. Organizational leaders must recognize that AI is not just a technological upgrade, but a paradigm shift that requires active participation and engagement. Analysis by EY has shown that AI can complement human capabilities rather than replace them, as automation of routine tasks allow employees to focus on more strategic and creative activities.

The path to the successfully integrating AI into the workplace is complex and requires a holistic approach that includes all stakeholders, ethical considerations, and continuous learning. By focusing on enhancing human capabilities and fostering a culture of collaboration and transparency, organizations can fully leverage AI’s potential, creating a more dynamic and resilient workforce.

Over the next few years, businesses should identify areas where AI can reduce operational expenses and improve customer experience, invest in employee training, and consistently assess their digital maturity and AI adoption. Don’t miss the opportunity to become one of Cyprus’s fastest-growing companies.

By Demetris Skourides, Chief Scientist for Research, Innovation and Technology of the Republic of Cyprus