Cyprus initiates public consultation for the national AI regulatory framework

The Republic of Cyprus has launched a public consultation process regarding the 'Artificial Intelligence Law of 2026' bill. This legislation serves to establish the national framework required for the implementation of the European Union's Artificial Intelligence Act (Regulation (EU) 2024/1689), ensuring alignment across all member states regarding AI safety and ethical standards.

The proposed framework defines the national governing authorities, their respective responsibilities, and oversight mechanisms for market supervision. It introduces a compliance and enforcement regime that includes significant administrative financial penalties for prohibited AI practices that pose risks to fundamental rights, health, or safety. Additionally, the proposal includes the creation of an AI regulatory sandbox designed to support responsible innovation, as the government continues to refine the administrative structure for national enforcement.