"Businesses that effectively leverage Artificial Intelligence (AI), through advanced models and quality data, can more accurately predict market needs and consolidate their position in an increasingly demanding competitive environment," Stefanos Michael, Partner, Head of Technology Consulting Services, EY Cyprus emphasises.
As he explains in an interview with InBusinessNews, AI can increase efficiency in bureaucratic and repetitive processes, such as email writing, invoicing, inventory control and appointment scheduling. In addition, it can enhance the customer experience through solutions such as chatbots, recommendation engines and customer service copilots, providing faster and more personalised service.
According to Stefanos Michael, AI is gradually evolving towards what we call the Agentic Frontier, i.e. an environment where AI no longer functions only as a supporting tool, but as an active “partner” within the organisation. In the same context, he expresses the assessment that in the next two to five years, most businesses will follow this path, however, at a different pace and degree of maturity, moving from simple AI applications to organisational models based on AI agents.
Speaking about the crucial role that EY can play in this journey, the Head of Technology Consulting Services highlighted the assistance provided to organisations to formulate a clear AI and data strategy, defining the right starting point and their strategic vision.
At the same time, EY Cyprus, Michael says, "supports the creation of a strong AI Governance framework, so that the use of AI is responsible, ethical and fully compliant with the European regulatory framework, including the EU AI Act."
At the implementation level, it helps the move from pilot applications to production AI agent solutions that increase productivity, optimise costs and create new business value. In addition, it supports the creation of an AI Factory, enabling the development and operation of AI solutions at scale, with consistency and speed. At the same time, it ensures that the right technological and data-centric foundations are in place, through appropriate architecture, data quality assessment and Data Fabric implementation.
Finally, Michael characterises the awarding of EY Cyprus by Microsoft as Partner of the Year in Cyprus for 2025 as an extremely important distinction, noting that "this award seals a multi-year, stable and substantial collaboration with Microsoft, but also a long-term investment in the development of our people and our technological capabilities. We have built strong advisory and executive capabilities around the Microsoft ecosystem, and today we see this effort bearing fruit."
Artificial Intelligence (AI) is leading us into a whole new era. What do you consider the strategic opportunity to be for Cypriot businesses that will decide to invest significantly in AI technologies?
AI is not just a technological tool, but a catalyst for a profound transformation of business models, processes and decision-making. The potential for its evolution is enormous and the opportunities it offers to businesses are multifaceted. This is confirmed by data from the new Spending Guide from International Data Corporation (IDC), according to which global corporate investments in AI solutions are expected to reach $632 billion by 2028.
Through the effective integration of AI, industry expertise, strategic partnerships and the effective use of data play a key role in differentiation and sustainable growth. In this way, businesses can significantly improve their efficiency, enhance informed decision-making and respond more effectively to an increasingly complex business environment, ultimately achieving substantial revenue growth.
Beyond efficiency and the creation of new revenues, in what ways can AI act as a lever for modernisation, innovation and strategic diversification for Cypriot businesses?
AI can play a key role in modernising businesses, boosting innovation through the development of new products and services, personalising customer experiences, and creating modern business models. At the same time, leveraging AI solutions accelerates time to market, increasing the agility and competitiveness of organisations. Furthermore, its adoption, as well as related initiatives, is embedded in the corporate culture, contributing to the formation of an environment of continuous improvement and technological maturity.
At a strategic level, it is a key lever for differentiation from the competition. Businesses that leverage it effectively, through advanced models and quality data, can more accurately predict market needs and consolidate their position in an increasingly demanding competitive environment.
Digital transformation is now considered “yesterday’s talk.” What is your view of the next technological step being brought about by AI?
Digital transformation is often taken for granted, but in practice many organisations have yet to lay the groundwork. Data, technology infrastructure, business processes and the right organisational environment are often lacking. For this reason, AI adoption cannot be done piecemeal, but requires a parallel approach, where its integration progresses simultaneously with the formation of the necessary fundamentals.
The importance of this transition is also clearly reflected in recent findings from the EY-Parthenon CEO Outlook survey, which surveyed 1,200 CEOs worldwide in 21 countries. According to the survey, AI is evolving from an add-on tool to a fundamental element of business models, with 58% of leaders expecting it to be a key driver of growth in the next two years and 32% estimating it will fundamentally reshape the way their organisations operate. This momentum is also reflected in the fact that almost all CEOs have either already launched (52%) or plan to launch (45%) major transformation initiatives within the year, highlighting that AI is no longer a future option, but an immediate strategic priority.
What are the key business benefits that AI can offer today and in which areas can businesses see immediate results?
AI can solve important business challenges and deliver immediate, measurable benefits. It can help increase efficiency in bureaucratic and repetitive processes, such as email writing, invoicing, inventory control, and appointment scheduling. This frees up human resources for more valuable tasks and minimises errors.
By integrating AI, better resource management is achieved through data analysis, helping businesses predict demand, adjust prices and manage their inventory more effectively. In addition, it can enhance the customer experience through solutions such as chatbots, recommendation engines and customer service copilots, providing faster and more personalised service. It can also enhance risk management, identifying suspicious patterns in transactions, terms that need attention in contracts, as well as fraud or phishing attempts, faster than human resources.
To unlock all these benefits, businesses and organisations must first and foremost develop a comprehensive AI strategy that covers AI Governance, prioritisation of AI applications, and legal compliance with the EU AI Act. In addition, it is necessary to invest in modern technological infrastructure, data management and cybersecurity systems, as well as cultivating AI skills in human resources. Finally, transparent communication and meaningfully addressing employee concerns are crucial, so that AI is perceived as an ally and not a threat.
How do you think AI will evolve? How can EY help in this new environment?
AI is gradually evolving towards what we call the Agentic Frontier, an environment where AI no longer functions only as a supporting tool, but as an active “partner” within the organisation. We estimate that in the next two to five years, most organisations will follow this path, albeit at different paces and levels of maturity, moving from simple AI applications to organizational models based on AI agents.
At this stage, in most organisations, AI functions primarily as a personal assistant, enhancing employee productivity. Then, AI agents begin to integrate into teams as “digital colleagues,” taking on specific tasks under human guidance. In the more mature stage, humans retain strategic control and set the direction, while agents execute business processes and workflows, with targeted checkpoints where needed.
EY can play a key role in this journey, acting as a trusted partner at every stage of the transformation. First, by helping organisations shape a clear AI and data strategy, defining the right starting point and their strategic vision. At the same time, it supports the creation of a strong AI Governance framework, so that the use of AI is responsible, ethical and fully compliant with the European regulatory framework, including the EU AI Act.
At the implementation level, EY helps move from pilot applications to production AI agent solutions that increase productivity, optimise costs and create new business value. In addition, it supports the creation of an AI Factory, enabling the development and operation of AI solutions at scale, with consistency and speed. At the same time, it ensures the right technological and data-centric foundations are in place, through appropriate architecture, data quality assessment and Data Fabric implementation.
Finally, our team recognises that the success of the Agentic Frontier transition is not just a technology issue, but also a people and culture issue. That’s why we actively support change management, employee education, and ensuring adoption of AI solutions, helping organisations safely and confidently evolve into true AI Frontier businesses.
People remain at the heart of any transformation. How do you see technology and especially AI reshaping HR consulting and the way organisations manage talent and leadership development?
Human creativity, insight and adaptability have always been the key drivers of progress in societies and organisations, from the industrial revolution to the digital age. Today, as we face major transformations, this message is more relevant than ever. Technology should not define who we are, but act as a catalyst that enhances and evolves human potential.
The harmonious coexistence of humans and AI can lead to substantial progress, provided that AI is not seen as a substitute for human thought, but as an ally that enhances creativity, moral judgment and critical analysis. To achieve this balance, investment in education and initiatives that cultivate autonomy of thought, empathy and collaboration is essential, skills that define the new era of leadership.
At EY Cyprus, through our advisory services, we support organisations in redefining their relationship with talent, culture and leadership. We focus on aligning leadership with the organisation’s purpose, creating an environment of continuous learning and developing programs that leverage technology as a catalyst for human development and not as an end in itself. In this way, we enhance adaptability through continuous learning and change management, supporting organisations at every stage, from strategic planning and risk management to the creation of new work models and talent development.
In closing, EY Cyprus was recently honored with the Microsoft Partner of the Year 2025. What does the distinction mean to you?
EY Cyprus being awarded by Microsoft as Partner of the Year in Cyprus for 2025 is an extremely important distinction for us. This award seals a long-standing, stable and meaningful partnership with Microsoft, as well as a long-term investment in the development of our people and technological capabilities. We have built strong advisory and execution capabilities around the Microsoft ecosystem, and today we see this effort bearing fruit.
We leverage EY’s global expertise and combine it with specialised personnel in Cyprus who have experience in projects related to Microsoft solutions in areas such as AI, Business Applications, Cloud Engineering and Cybersecurity. What differentiates us in the market is our ability to enable our clients’ strategic transformation in a holistic manner – from strategy design and business process reengineering, to technology implementation.
(Source: InBusinessNews)
