Last year, Malta pitched itself as Blockchain Island – in what ways is the country delivering on this pitch?
In the past year, Malta established a new regulatory framework centring around the use of Innovative Technology Arrangements capturing Distributed Ledger Technology (“DLT”) platforms and Blockchain technology, with the primary aim of providing transparency and legal certainty. The government realised the advantages that blockchain can have in various sectors and is committed to embrace this type of technology whilst at the same time, protecting and guaranteeing its existence. The legislation aims to instil peace of mind and certainty, as society places more trust in innovative technology. Furthermore, this regulatory framework positions Malta at the forefront of technological business opportunities, as it creates a sound platform for innovators thus solidifying Malta’s positive reputation in the field as a Blockchain Island.
Beyond the sci-fi fears, in what ways does AI benefit employers and employees?
The benefits that AI will bring about are immense, as AI is expected to transform the way we work, live and play. Since AI is widely considered to be a general-purpose technology, it can generate innovation and business growth across various fields, activities and sectors. In October 2019, Parliamentary Secretary Silvio Schembri launched the government’s AI strategy entitled A Strategy and Vision for Artificial Intelligence in Malta 2030.
The government’s aim is to develop a strategy that focuses on investment and resources in order to maximise the benefits for Malta and its contributions to the global economy. For example, AI solutions will empower companies to hone their performance while also provide better services to clients and customers. At the same time, however, we also recognise that the technology presents certain risks that need to be addressed and appropriately managed. MDIA’s role is to oversee the governance of the strategy, working with key stakeholders as required.
Which sectors is AI already disrupting and which others are ripe for disruption?
We want AI to be used to achieve positive outcomes for society and a number of sectors in Malta are already experiencing the positive impact of AI. AI solutions and technologies are already being used in sectors such as financial services, gaming, tourism, real estate, and advanced manufacturing and aviation. From a global perspective, various countries are using AI’s most impactful applications in the most transformative ways possible.
Looking at healthcare, a great deal of work is under way to use AI to detect and diagnose various forms of cancer, which would be a ground-breaking and transformative change, affecting people’s lives. In other cases, AI is being used to help prevent traffic jams and manage traffic flows to reduce travel times and decrease emissions, in an effort to protect the environment. AI is also being used in other sectors such as education and farming and is likely to influence other fields and activities. MDIA has been tasked with the responsibility for the monitoring and governance of the Malta AI strategy’s implementation with the objective of creating a lasting and positive impact on Malta’s citizens and businesses.
How important is a sound yet flexible regulatory regime to the strengthening of the sector?
The new regulatory framework focuses on the use of Innovative Technology Arrangements capturing DLT platforms and blockchain technology, with the primary aim of providing transparency and legal certainty. The legislation aims to instill peace of mind and certainty, as society places more trust in innovative technology. Furthermore, this regulatory framework positions Malta at the forefront of technological business opportunities, as it creates a sound platform for innovators. Our vision is one which is long term, and we firmly believe that trustworthiness is achieved through robust, yet tech responsive, regulation frameworks.
The legislation aims to instill peace of mind and certainty, as society places more trust in innovative technology
What role does the MDIA play within this context?
MDIA plays a key role in the sector. The authority was established in order to fill in a lacuna in providing technological assurances that verify technological claims made by claimants of blockchain and AI, and potentially other innovative technology arrangements of the present as well as the foreseeable future. These technological assurances will result in user protection.
You have launched a technology certification. How does this work and what benefits does it carry?
MDIA is the authority responsible for the certification of innovative technology platforms. Such certification is given after a rigorous assessment that includes an opinion of a Systems Auditor that is certified by the same authority. Moreover, an MDIA certification ensures trust through independent audits, to the end-user, and hence the Innovative Technology Arrangement (ITA) can be used with a drastically improved and assured peace of mind. An entity that is providing an Innovative Technology Arrangement (ITA) can proudly sell its product with more transparency and verified claims if it is certified by the MDIA.