Prime Minister Robert Abela’s recent assertion that Artificial Intelligence (AI) is the solution to replace excess workers has sparked considerable debate. His outlook is timely, presenting a pragmatic approach to addressing our island nation’s multifaceted challenges.
The notion of substituting human labour with AI might initially appear contentious. Yet, upon closer examination, it emerges as a necessary transition to sustain and advance Malta’s economic and social fabric.
At the heart of this proposition lies the pressing need for Malta to rethink its economic strategy. The island’s impressive economic growth over the past decade, averaging an annual GDP increase of 6.1%, has been driven mainly by an influx of foreign workers filling essential roles in various sectors, from construction to iGaming.
However, this model has reached its limits. The strain on infrastructure, skyrocketing housing prices and overburdened public services are clear indicators that Malta cannot continue to expand merely by adding more people.
Such a vision taps into a broader global trend where countries turn to technology to drive productivity and economic growth. By 2027, the World Economic Forum predicts that 42% of work tasks globally will be automated. For Malta, embracing AI isn’t just an option; it’s a must.
AI can revolutionise industries, enhance efficiency and create high-value jobs, transforming the economy from one that depends on massive human resources to one that thrives on innovation and smart solutions.
The reason for this transformation is evident: Malta must maintain its economic success while easing the pressures of rapid population growth and limited resources.
We must ensure the current model becomes sustainable and doesn’t turn into a ticking time bomb. To prevent this, we must focus on boosting productivity through technology rather than merely increasing the workforce. By enhancing the capabilities of our workers, we are indirectly improving their job efficiency.
There are many options to achieve this target. In most sectors, AI could streamline operations, enhance user experience and bolster cybersecurity. Imagine AI-powered chatbots handling routine customer service queries, freeing human employees to tackle more complex tasks. Such technologies not only improve service quality but also reduce operational costs. We can find compelling case studies in every industry, ranging from finance to health.
However, to realise this vision, the government must take charge. A bold and comprehensive AI strategy, backed by substantial funding for research and development, is essential.
Businesses should be incentivised to adopt AI technologies and partnerships between educational institutions and the private sector must be fostered to ensure the workforce is equipped with the necessary skills. This includes not just technical skills but also creativity, critical thinking and adaptability – qualities that complement AI and drive innovation.
Furthermore, the education system needs a radical overhaul to prepare the next generation for the jobs of tomorrow. Introducing digital literacy from primary school, emphasising STEM subjects and encouraging entrepreneurship through school programmes are vital steps. Higher education must align more closely with industry needs, ensuring graduates are ready to contribute to an AI-driven economy.
AI can revolutionise industries, enhance efficiency and create high-value jobs- Alexiei Dingli
Another crucial element is creating a vibrant startup ecosystem. Startups drive innovation and can significantly boost economic progress. Malta should become the startup hub of the Mediterranean by simplifying business processes, providing co-working spaces, offering mentorship and promoting networking opportunities. Tax incentives for investors and efforts to attract international startups further bolster this ecosystem.
Investing in green technology is also pivotal. Sustainability is not just an environmental imperative but an economic opportunity. Malta’s sunny climate makes it ideal for solar energy research and development and its island location is perfect for marine technology innovation.
Establishing a Green Tech Innovation Centre and offering grants for green startups could position Malta at the forefront of this rapidly growing market, creating high-value jobs and significant export potential.
A robust digital infrastructure is essential to supporting these initiatives. Ensuring strong island-wide 5G coverage, investing in quantum computing and improving cybersecurity capabilities will create a digital backbone that promotes innovation across all sectors. This will enable businesses to leverage new technologies, driving productivity and economic growth.
However, technology alone isn’t enough. Cultivating a national culture that values innovation, risk-taking and continuous learning is crucial.
Finally, promoting work-life balance is also essential. Productivity isn’t about working longer hours but working smarter. Encouraging flexible working arrangements, promoting rest and leisure and investing in mental health support will create a happier, more productive workforce.
This approach will also make Malta more attractive to skilled international workers, further enhancing the talent pool.
Integrating AI to substitute excess workers is not an option but the only way forward. This transformation requires bold action, significant investment and a willingness to challenge the status quo. By focusing on productivity and innovation, Malta can build an economy that grows and thrives, ensuring a prosperous future for all its citizens.
The journey to Malta 2.0 starts now and it’s a path we must take to secure our future in the 21st century.
Alexiei Dingli is a professor of Artificial Intelligence.