Cyprus' Ministry of Finance published Finance Minister Makis Keravnos' annual lecture at the University of Cyprus, examining how artificial intelligence (AI) could improve economic policymaking and reviewing preparations to implement the European Union's AI Act. The policy priorities covered economic forecasting, tax administration and public spending, alongside the workforce skills, infrastructure and governance needed to support adoption. Potential applications include using more frequently updated data to detect economic changes earlier and targeting tax and customs checks through risk analysis rather than indiscriminately increasing inspections. AI could also help identify unusual public procurement patterns and assess whether social programs reach their intended recipients. Effective deployment would require reliable data, digital infrastructure, staff training and clear governance. The lecture also called for retraining and employment support to help workers move into expanding activities, while highlighting the risks of greater inequality and concentration of economic power among large technology companies. On implementation of the AI Act, the national legislative framework is nearing completion. A draft implementing bill that has been put to public consultation proposes making the Central Bank of Cyprus a market surveillance authority for AI systems classified as high risk when used by financial institutions and directly linked to financial services within its supervisory remit. Existing government decisions have assigned strategic coordination to the Deputy Ministry of Research, Innovation and Digital Policy. The Commissioner of Communications has been designated as notifying authority, market surveillance authority and single point of contact, while the Commissioner for Personal Data Protection has responsibility for specified categories of AI systems classified as high risk. The authorities are developing procedures to exercise their responsibilities.
Cyprus Ministry of Finance reviews AI policy priorities and progress on EU AI Act implementation
In an annual lecture published by Cyprus' Ministry of Finance, Finance Minister Makis Keravnos discussed AI applications in economic forecasting, tax administration and public spending, supported by investment in skills, infrastructure and governance. He also reviewed preparations to implement the EU AI Act, with national legislation nearing completion. A draft bill proposes Central Bank of Cyprus oversight of AI systems classified as high risk that financial institutions use in direct connection with financial services within the bank's supervisory remit.