Cyprus must embrace AI, reskill workforce to unlock growth, says Skourides

Artificial Intelligence (AI) is transforming workplaces in Cyprus today, offering higher salaries and more opportunities, according to chief scientist Demetris Skourides.

“Studies have shown that, even in emerging markets, automating routine tasks is expected to unlock the potential of lower-skilled workers,” Skourides explained, and Cyprus can benefit greatly by focusing on education, particularly in STEM fields, while also investing in upskilling its workforce.

“To take advantage of this global growth,” Skourides said, “the country must quadruple its rate of reskilling, upskilling, and AI adoption over the next five years.” 

Once considered distant, AI is now driving significant changes in industries worldwide. In Cyprus, AI is reshaping workplaces, offering “AI is already reshaping workplaces, promising better salaries, and increased opportunities,” particularly in sectors like financial services, healthcare, and automotive, according to Skourides.

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 per cent increase in pay.

According to Skourides, “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, optimise 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,” Skourides added.

However, digitization levels in both the public and private sectors in Cyprus are much lower compared to other developed countries.

In 2021, 70 per cent of Cypriot SMEs had at least a basic level of digital intensity, 42.3 per cent used social media, and 42.2 per cent cloud storage.

Skourides said tha”t the use of e-invoices remained low (13.1 per cent), and cutting-edge technologies were underutilised,” adding that “with only 6.2 per cent of businesses using big data and a mere 2.6 per cent leveraging AI.”

“This lag represents a significant opportunity,” Skourides said.

“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,” Skourides explained.

He also noted that workers already in the job market, especially support engineers who invest in AI skills, can expect salary increases of up to 30 per cent, supported by government incentives.

He explained that Cyprus’ 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 transformation, Cyprus needs a detailed strategy to turn employees into active stakeholders in value creation.  

Skourides pointed out that the government is already providing subsidised and free of charge training programmes through the Human Resource Development Authority.

Moreover, he noted that 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.

Furthermore, one instance of AI’s impact in Cyprus is the Hackathon event held in Limassol, focusing on financial services.

“Participants developed applications aimed at making these services more accessible, efficient, and responsive,” Skourides said.  

Additionally, the Research and Innovation Foundation (RIF) launched an initiative where seven RIF teams developed 20 proposals to improve productivity, save time, and enhance 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,” Skourides explained.

RIF has also established an “AI Taskforce” team to explore the ethical dimensions of AI in the workplace.

“The task force aims to address concerns about job loss and data privacy, ensuring that AI applications are transparent, fair, and accountable. The task force is comprised of five highly qualified employees tasked with monitoring these practices,” he noted.

As companies and organisations navigate this technological revolution, it’s important to understand the multifaceted impact of AI on productivity, employee engagement, and organizational culture.

“Organizational leaders must recognise that AI is not just a technological upgrade, but a paradigm shift that requires active participation and engagement,” according to Skourides.

EY’s analysis shows that AI can “complement human capabilities rather than replace them,” allowing employees to focus on more strategic and creative tasks.

Skourides stressed that Cyprus must adopt a holistic AI strategy to fully realise its benefits. This involves transforming employees into active participants in value creation while ensuring continuous learning and development.

“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,” he said.

“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,” he added.

“Don’t miss the opportunity to become one of Cyprus’ fastest-growing companies,” Skourides concluded.