Cyprus SMEs Invited to Assess AI Use Under New EU Compliance Initiative
The Cyprus Securities and Exchange Commission (CySEC) has issued an important statement inviting small and medium-sized enterprises (SMEs) in Cyprus to participate in a comprehensive questionnaire focused on the utilization of artificial intelligence.
Background of the Initiative
This questionnaire was initially developed by the Office of the Commissioner for Personal Data Protection and is specifically aimed at entities supervised by CySEC operating within Cyprus. The initiative falls under the EU co-funded Data ProTech project, which is part of the CERV Programme.
Objectives of the Project
CySEC has outlined that the primary aim of this project is to enhance SME compliance with two key regulations: the General Data Protection Regulation (GDPR) (EU) 2016/679 and the Artificial Intelligence Regulation (EU) 2024/1689.
Responses to the questionnaire must be submitted by Wednesday, February 4, 2026. This initiative is a collaborative effort involving the Office of the Commissioner for Personal Data Protection, the University of Limassol, and the Cyprus Chamber of Commerce and Industry.
Implementation and Support
The Data ProTech project is designed to address the actual operational needs of SMEs by merging regulatory compliance with practical support. An electronic compliance assessment tool will be developed, allowing SMEs to conduct self-evaluations regarding their adherence to the GDPR and the AI Act.
Additionally, the project will produce tailored training and informational materials to help SMEs navigate the specific challenges they face.
Educational Initiatives
To facilitate the implementation of compliant AI systems, CySEC will organize a series of educational and training activities. Expected outcomes include:
- A comprehensive mapping of AI use among SMEs.
- Identification of compliance gaps that could expose businesses to regulatory risks.
- Development of a set of compliance criteria for AI systems, providing clear guidance for lawful and responsible deployment.
Workshops and Awareness Campaigns
The initiative will also involve workshops and targeted actions aimed at enhancing understanding of regulatory obligations. An awareness campaign on the GDPR and the AI Act will be launched to foster a culture of compliance throughout the SME sector.
Through this initiative, CySEC aims to empower SMEs in Cyprus to effectively integrate AI technologies while ensuring adherence to essential regulations, ultimately contributing to a more compliant and innovative business landscape.
