articles | 27 August 2024 | ServPRO

Cyprus prepares for the first-ever, robust legal framework on Artificial Intelligence (AI) under EU’s AI Act

With the ever-increasing role of Artificial Intelligence (AI) into our daily lives, the EU has earlier this summer adopted Regulation (EU) 2024/1689 of the European Parliament and of the Council of 13 June 2024 laying down harmonised rules on artificial intelligence (known as the “AI Act”). The AI Act is the first-ever, robust legal framework on AI which addresses the risks involved in AI and sets clear rules on AI system requirements and uses.

Cyprus’ role in the EU’s AI Act
The Deputy Ministry of Research, Innovation & Digital Policy of the Republic of Cyprus has announced that the Government has already commenced the requisite actions for the implementation of the regulation, which include the definition of the competent authorities under EU’s AI Act, the procedure for the accreditation of the conformity assessment bodies, and the drafting of the local legislation relating to the AI Act.

Categorises of AI systems under the AI Act
The EU’s AI Act categorises AI systems in four (4) risk-based levels:

  1. Unacceptable Risk: AI systems considered as a clear threat to the safety, livelihoods and rights of people are banned (refer to Article 5 of the AI Act on “Prohibited Practices”).
  2. High Risk: AI systems categorised as high risk include AI technology used in critical infrastructures, law enforcement procedures that may interfere with human rights, product safety, employment procedures, migration and border control management, administration of justice and other processes (refer to Article 6 of the AI Act on “Classification rules for high-risk AI systems”). Strict rules apply for the deployment of high risk AI systems, which are elaborated on in Section 2 of the AI Act on “Requirements for high-risk AI systems”.
  3. Limited Risk: AI systems categorised as limited risk relate to transparency and include chatbots, for which acknowledgment and consent is required prior to their deployment.
  4. Minimal or No Risk: Minimal or no risk AI systems are free to be used under the AI Act and include AI-enabled video games or spam filters.

 AI Act’s application

The AI Act has already entered into force and will apply through direct effect across all EU Member States from 2 August 2026.


ServPRO is Your One-Stop-Shop for Professional Services.

ServPRO is a well-established team of accountants, auditors, advocates and consultants in Cyprus. Our areas of expertise are Accounting & Finance, Advisory & Consulting, Audit & Assurance, Corporate & Legal, Startups & Economic Substance and Tax.

Our team has a stellar track record in delivering practical solutions to corporate and individual clients with a spherical, solution-driven and detail-oriented approach, while demonstrating an aptitude of professionalism, integrity and commercial acumen.

For more information on this topic contact us by telephone (+35722021100) or email (info@servpro.com.cy).



Cooperation Partners
  • Logo for Cyprus Chamber of Commerce and Industry
  • Logo for Ministry of Energy, Commerce, Industry and Tourism
  • Logo for Cyprus Shipping Chamber
  • Logo for Love Cyprus Deputy Ministry of Tourism
  • Logo for Invest Cyprus
  • Logo for Cyprus International Businesses Association
  • Logo for CYFA Cyprus
  • Logo for Cyprus Investment Funds Association
  • Logo for Association of Cyprus Banks