Artificial intelligence (AI) is creating both opportunities and risks in the workplace, as the technology increasingly penetrates Cypriot businesses.
In Cyprus, AI applications are currently concentrated mainly in sectors such as financial services, telecommunications, digital marketing and customer service.
Among the benefits identified are automation tools that reduce administrative workload and support employees in their day-to-day tasks. However, experts stress that investment in skills upgrading and the active involvement of social partners — trade unions and employers — are essential.
Still at an early stage in Cyprus
Following recent recommendations by the European Parliament urging the European Commission to introduce new EU legislation to ensure the transparent, fair and safe use of automated monitoring and decision-making systems at work, Politis asked academics specialising in the field to assess the situation in Cyprus, outlining the benefits and the risks of AI in employment.
“Artificial intelligence is being integrated into workplaces in Cyprus, with its use by businesses showing a marked increase in recent years,” said Dr Augusta Kyriakidou-Zacharoudiou, Assistant Professor of Information Systems Management at Neapolis University Pafos.
According to data from the Statistical Service of Cyprus, around 9.3% of businesses reported using AI technologies in 2025, compared with just 2.6% in 2021.
“Despite this positive momentum, compared with other European countries where average usage approaches 20% (Eurostat), AI adoption in Cyprus remains at a relatively early stage and varies significantly by sector, with higher usage among larger enterprises,” she noted.
AI is mainly used in financial services, telecommunications, digital marketing and customer service, where it supports data processing and analysis, speeds up workflows, assists decision-making and reduces bureaucratic procedures, improving organisation and efficiency.
In many cases, she said, AI functions as a support tool for employees, offering automation that lowers administrative burden and allows greater focus on more creative, meaningful and higher-quality aspects of work.
Risks and safeguards
However, as also highlighted by the European Trade Union Confederation (ETUC), the positive contribution of AI is not automatic and requires a clear and binding legislative framework.
“Transparency in algorithmic systems, protection of personal data, the prevention of discrimination and the guarantee of human oversight are critical prerequisites if technology is to enhance - rather than undermine - job quality and avoid replacing human judgement in matters such as evaluation, performance or discipline,” Dr Kyriakidou-Zacharoudiou stressed.
She added that investment in upskilling and reskilling, alongside the active participation of social partners, is essential to ensure a balanced and fair transition to the AI era, benefiting both workers and the wider economy.
“AI has the potential to offer meaningful solutions in the workplace, but it is neither a panacea nor an inherent threat. The key question is whether it will be used to support human labour or as a mechanism of control without sufficient transparency and safeguards. This is not only a technological issue, but above all a political and institutional one,” she said.
International experience
International experience shows that AI’s impact on work depends largely on regulatory frameworks and accompanying policies. In countries such as Germany and the Nordic states, the introduction of AI systems in workplaces has been linked to collective agreements and clear transparency rules, ensuring algorithms play a supportive role rather than serving as tools of work intensification or surveillance.
In France, employees have the right to be informed and consulted before automated performance evaluation systems are introduced.
By contrast, in more deregulated labour markets, such as the United States, the widespread use of algorithmic management has sparked strong reactions, particularly in sectors such as digital platforms and distribution centres, where excessive work intensity and reduced human judgement have been reported.
At the same time, organisations such as the OECD and the International Labour Organization underline that economies investing systematically in reskilling and lifelong learning are better able to turn AI into a driver of qualitative job upgrading.
European Parliament calls for regulation
On 17 December, the European Parliament called on the European Commission to regulate the use of algorithmic management in the workplace across the EU.
In a legislative-initiative report, MEPs submitted recommendations for new EU legislation to ensure transparent, fair and safe use of automated monitoring and decision-making systems at work. While acknowledging the potential of algorithmic systems to optimise work, MEPs stressed the need to safeguard human oversight, workers’ fundamental rights and personal data.
Trade union concerns
“The European Parliament vote in favour of EU action on digitalisation, AI and algorithmic management at work sends a clear and urgent message to the Commission: the time to act is now,” the ETUC said in a statement, urging the Commission to propose binding legislation on AI at work as part of the forthcoming Quality Jobs Act.
Across Europe, the ETUC warned, workers are already experiencing the consequences of the rapid and unregulated deployment of AI in the workplace.
Trade unions cite unfair automated dismissals, intrusive surveillance, opaque algorithmic decision-making and increased work intensity driven by digital management systems. “Without clear and enforceable rules, AI risks further undermining job quality, workers’ rights and trust at work,” the ETUC stressed.
According to the unions, the European Parliament’s adoption of the legislative-initiative report highlights a significant gap in the current EU framework governing digitalisation, AI and algorithmic management in the workplace.
This article was originally published on the Greek-language Politis website.