Cyprus drafts national framework to implement EU AI Act

The Republic of Cyprus has launched a public consultation on a new bill titled 'The Artificial Intelligence Law of 2026.' This legislation aims to create a national framework to enforce the EU Artificial Intelligence Act (Regulation 2024/1689), ensuring compliance across all member states. The bill establishes the necessary governance structure, defines the powers of national supervisory authorities, and outlines procedures for market monitoring. A key feature of this initiative is the creation of an AI regulatory sandbox designed to support responsible innovation, while simultaneously implementing strict administrative sanctions for prohibited AI practices.

This legislative development follows the EU's recent progress in implementing key provisions of the 2024 AI Act, which now specifically target powerful general-purpose AI models underlying services like chatbots and generative applications. By aligning its national rules with the European framework, Cyprus seeks to mitigate risks to fundamental rights, safety, and health. The bill is currently under public review, with authorities working to finalize the regulatory mechanisms that will govern how AI products and services are developed and utilized within the country.