The adoption of artificial intelligence among Cyprus firms remains significantly lower than the EU average, despite a steady rise over recent years. According to a report released by Eurostat, the proportion of enterprises in the European Union that utilised AI technologies reached approximately 20 per cent in 2025. This marks a substantial increase from 13.5 per cent in 2024, reflecting a growing trend towards integrating digital tools in business operations.
Ai adoption: Cyprus’s Position in the AI Landscape
In stark contrast to the EU average, Cyprus recorded an AI adoption rate of just 9.27 per cent in 2025. This figure is notably below the EU-27 average of 19.95 per cent, revealing a gap of more than 10 percentage points. Within the EU, Cyprus is positioned among the countries with the lowest AI adoption rates, trailing only behind Greece, Bulgaria, Poland, Turkey, and Romania, the latter of which reported a mere 7.41 per cent.
Progress Over the Years
Cyprus has seen a gradual improvement in AI adoption over the past four years, beginning with a mere 2.59 per cent in 2021 when the EU-27 average stood at 7.65 per cent. This initial gap of 5.06 percentage points has narrowed slightly in subsequent years, although Cyprus’s progress remains sluggish compared to the faster growth rates observed across the rest of the EU.
- 2021: Cyprus – 2.59%, EU-27 – 7.65% (Gap: 5.06%)
- 2023: Cyprus – 4.67%, EU-27 – 8.06% (Gap: 4.19%)
- 2024: Cyprus – 7.90%, EU-27 – 13.48% (Gap: 5.58%)
- 2025: Cyprus – 9.27%, EU-27 – 19.95% (Gap: 10.68%)
Comparative Success Across the EU
The EU as a whole is clearly embracing AI technologies, with almost all member states reporting increases in the number of enterprises adopting these tools. Denmark leads the pack with a remarkable 42.0 per cent adoption rate, followed by Finland at 37.8 per cent and Sweden at 35.0 per cent. The lowest levels of adoption were found in Romania (5.2%), Poland (8.4%), and Bulgaria (8.5%), with Cyprus just above this group.
Eurostat highlighted that the rising figures indicate a significant trend towards mainstreaming AI technology across the Union. The report noted that the most common application of AI in EU enterprises was analysing written language, which had a usage rate of 11.8 per cent. This was followed closely by generating pictures, videos, or audio at 9.5 per cent, and generating written or spoken language at 8.8 per cent.
Key Applications and Growth Areas
Among the various applications of AI technologies, the analysis of written language saw the most substantial growth, increasing by 4.9 percentage points from the previous year. Other notable growth areas included the generation of written or spoken language, which rose by 3.4 percentage points. This trend signifies an increasing reliance on AI to enhance productivity and efficiency within businesses.
The Road Ahead for Cyprus
As Cyprus firms strive to improve their adoption rates, the challenge remains to catch up with their EU counterparts. The current trajectory suggests a slow but steady improvement; however, the widening gap raises concerns about the competitiveness of Cypriot enterprises in an ever-evolving digital landscape.
To bridge this divide, strategic initiatives and investments in AI education and infrastructure are essential. Encouraging collaborations between the public and private sectors could also spur innovation and facilitate the integration of AI technologies into various industries.
While the upward trend in AI adoption in Cyprus is promising, the nation must accelerate its efforts to ensure that local businesses can thrive in a technology-driven future.
