When Malta launched its first national AI strategy in October 2019, it positioned itself among the earliest adopters globally. According to Gavril Flores, Chief Officer for Strategy, Policy and Governance at the national digital innovation authority, the MDIA, that early understanding of the disruptive and transformative power of AI was critical in creating the conditions for early adoption.

“This was particularly so within the public sector, where €5 million was invested in research while a further €8 million was dedicated to public sector projects, allowing for the strategy to provide both vision and substance,” Mr Flores explains.

The results are extremely encouraging and place Malta amongst the better performing jurisdictions. “AI uptake in industry has risen steadily, from 13.2 per cent in 2024 to 17.3 per cent in 2025, with a clear national target of reaching 27 per cent by 2030. More striking still is the pace of delivery with around 80 per cent of the measures in the original strategy which were planned to be implemented by 2030, are already completed, ongoing, in the final stages of execution or no longer applicable due to the change in the digital needs and landscape,” he expounds.

Success, however, brings with it new responsibility: the need to regroup, reflect, and adjust course according to new challenges. And that is precisely what Malta is currently doing. A new national AI strategy, which was officially launched on 25th November during a public Cabinet meeting, is currently being finalised.

“The launch of the consultation on the realigned strategy during a public Cabinet meeting, in the presence of the country’s executive top brass, sends an extremely powerful message,” Mr Flores reflects as he reveals the direction the new strategy is expected to take. “The updated framework introduces 83 measures, some building on existing initiatives, others entirely new, as it reflects a fundamental shift in how Malta understands the role of AI in society and the economy.”

“Proportionally, Malta today boasts one of the highest number of AI graduates across all OECD countries, a statistic that reinforces the country’s understanding of the sector’s potential at an educational level. But the new strategy goes further, deliberately widening the lens to include sectors such as the arts and living heritage. AI is no longer seen as the exclusive domain of technologists or industry, but as a tool that permeates all aspects of life,” Mr Flores adds.

In developing the new strategy, the MDIA studied some 50 AI strategies, from the most significant jurisdictions around the world, to benchmark Malta’s position going forward.

“Despite differences in geography or scale, many of the challenges are shared, even in the most far-flung countries,” Mr Flores notes. “These insights reinforced a broader realisation that AI could be the economic catalyst to make the great shift away from growth for its own sake. Instead, AI could be the awesome power that fuels an economy that serves society, enabling better, more inclusive quality of life.”

The ethical aspect remains central to this vision, with the MDIA having already introduced a national code of ethics for AI, rejecting the notion that innovation and responsibility are in conflict. “On the contrary, the two must reinforce each other. To this end, the authority is in close collaboration with artists and cultural practitioners, supporting publicly funded research in the AI space and ensuring greater awareness of AI’s implications and possibilities,” Mr Flores insists.

Equally critical to success in the AI space is education and AI literacy among the public. “The MDIA is rolling out free AI courses open to everyone, designed to demystify the technology, address ethical considerations, and equip participants with practical tools they can use. The ambition is to make Malta the most AI-literate country in Europe,” Mr Flores declares.

The appointment of a Chief AI Officer within the public sector, alongside a €100 million national investment earmarked for AI uptake, signals the seriousness of this commitment.

All of this is framed within a vision for a just transition. The goal is an economy that remains people-centred, supporting wellbeing, fairness, and opportunity. Looking ahead, Malta’s Vision 2050 aspires to position the country as a regional centre of excellence, reinforcing its role as a trusted jurisdiction in an increasingly regulated AI landscape.

“From August 2026, new transparency obligations will also come into force, requiring generative AI content to be clearly marked, further strengthening public confidence.”

Malta’s early bet on AI has paid off, but leadership today means evolving with purpose. “The next chapter is about maturity, trust, and ensuring that technology ultimately works in service of people, culture, and quality of life,” Mr Flores concludes.