Cyprus finance minister addresses role of artificial intelligence in economic policy

On November 3, 2026, Cyprus Finance Minister Makis Keravnos delivered an annual lecture at the University of Cyprus titled "Artificial Intelligence in the Service of Economic Policy." During his speech, he discussed the potential for AI to enhance government decision-making, specifically through better tax auditing, public expenditure management, and economic forecasting using high-frequency data.

Minister Keravnos emphasized that while AI will replace certain specific tasks, it is not intended to replace public sector employees. He raised philosophical concerns regarding the impact of automation on social inequality, stating that outcomes depend on current political choices. He referenced Aristotle to frame the debate between AI leading to a human-liberating utopia versus a dystopia of widened social gaps.

Regarding implementation, the government is currently finalizing the national legislative framework to align with European Union regulations on artificial intelligence. A technical-economic study is expected to be completed within days. The Council of Ministers has already designated the Deputy Ministry of Research, Innovation, and Digital Policy as the lead authority for national strategy and coordination, ensuring that Cyprus remains aligned with broader European developments in AI regulation.