This month we witnessed a game-changer for the Malta Digital Innovation Authority (MDIA) and the digital innovation sector in Malta as Parliament unanimously approved the revisions of the authority’s legislative framework.

The MDIA’s functions have been revised to sustain nimble processes, independence, partiality, proportionality, good governance and transparency. The new law will also facilitate the implementation of various EU legislation in the field where MDIA took a proactive role in leading Malta’s negotiations.

Malta embarked on a pioneering journey in 2018, establishing itself as a hub for digital innovation with the creation of the MDIA. This marked a significant step towards fostering a robust environment for emerging technologies, particularly in the realms of artificial intelligence (AI), data and cybersecurity.

As we look back over the past six years, it's evident that Malta's proactive stance has paid dividends, positioning the country at the forefront of digital innovation. Now, in 2024, the journey continues with an evolved framework designed to cater to new developments and future-proof the digital landscape.

The inception of the MDIA in 2018 was a visionary move, aimed at promoting and regulating innovative technology arrangements and services. The authority was tasked with creating a conducive environment for digital innovation, ensuring that technologies like AI were developed and deployed in a secure, ethical, and transparent manner. 

The first were formative years, particularly the first three years, where the MDIA focused on establishing itself as a credible and authoritative body in the digital innovation sector. The Authority’s initial focus was voluntary technology assurance to ensure that reasonable standards are met with respect to purpose, qualities, features, attributes, behaviours or aspects of innovative technology arrangements. Initially only software and architectures which are used in designing and delivering distributed ledger technologies, and smart contracts were covered. A National level robust programme to register systems auditors was established and various other authorities capitalized on the system to ensure compliance across different legislative requirements.

In the subsequent three years, the MDIA made significant strides in the digital innovation sector, taking on a more prominent leadership role. The authority was instrumental and played a key role in developing national strategies for digital innovation, positioning Malta as a leader in the digital economy.

Foresight is in the MDIA’s DNA. During the same period, the Authority created a Technology Assurance Sandbox which focused also on Artificial Intelligence. Following its success, the European Commission proposed that such a sandbox shall be introduced across the European Union.

The Authority took significant steps in eliminating the digital divide through introduction of schemes aimed at supporting users and promoting capacity building across the country. It also contributed to the creation of policies that foster a thriving digital innovation ecosystem, ensuring that Malta remains at the cutting edge of technological advancements.

Fast forward to 2024, the MDIA continues to evolve, adapting its framework to meet the demands of new technological advancements. This evolution is not just about keeping pace with innovation but also about anticipating future trends and challenges. The MDIA is now poised to play a crucial role under cyber security, data and AI legislation. The EU AI Act will be published in the Official Journal of the European Union on the coming days and it introduces new responsibilities and mandates for national authorities, including that of the AI Market Surveillance Authority.

Malta has shown commitment to ensure that AI is safe and trustworthy and the EU AI Act guarantees the health, safety and fundamental rights of people while provides legal certainty to businesses across the 27 Member States.

The MDIA will be in charge of market surveillance of AI systems on the market and will undertake most national compliance investigations and enforcement actions under the EU AI Act. High-risk AI systems providers will be required to report any serious incident to the Authority which will also establish a system for redress.

The role as surveillance authority, complements the one-stop-shop European Digital Innovation Hub established in 2023 by MDIA which provides entrepreneurship support services, an environment to test before invest, cross-sector upskilling and reskilling digital skills educational initiatives and  facilitate networking and collaboration through the development of innovation communities.

Malta's journey from 2018 to 2024 has been marked by significant achievements in digital innovation. As we look to the future, the MDIA's enhanced roles under data, cyber and AI legislation will further solidify Malta's reputation as a leader in digital governance. By continuously adapting and evolving its regulatory framework, Malta is not only addressing current technological challenges but also future-proofing its digital landscape for the innovations yet to come.

The commitment to fostering a secure, ethical, and innovative digital environment remains at the heart of Malta's strategy, ensuring that the journey that began in 2018 will continue to flourish in the years ahead.