Artificial intelligence is already having a significant impact on organisations and industries around the world. Many predict that the advent of artificial general intelligence (AGI) – the ability for machines to process and reason like humans – is closer than ever.

AI’s transformative potential is already being realised in sectors such as healthcare, finance and education, with far-reaching implications for Malta’s future. If Malta can seize the opportunities AI presents, it could not only address key challenges but also position itself as a leader in the next wave of digital transformation.

Malta stands at a unique juncture. As a small EU member state with English as an official language, Malta is particularly well placed to become a hub for AI-driven innovation. This is particularly relevant as many large language models are predominantly trained on English datasets. Our size allows for agility, our EU membership connects us to European and global markets, and we’re governed by the EU’s leading regulatory standards, including the AI Act.

The AI Act adopts a risk-based approach, aiming to strike a balance between fostering innovation and implementing necessary safeguards. For Malta, this means we have the potential to pioneer AI applications with a high degree of agility.

Moreover, Malta has a unique opportunity to shape the future data ecosystem in ways that larger countries cannot. The EU’s vision for a single market for data, driven by open data policies, interoperable systems and robust APIs, provides fertile ground for innovation. It’s about driving new business and service ecosystems with data at their core.

The question for Malta is clear: Do we have the ambition to lead, or will we follow in the footsteps of other EU countries? As a small nation, we are agile enough to build a model data ecosystem that could serve as a template for others. But to do so, we must act decisively and strategically.

In 2019, Malta’s government launched an ambitious AI strategy, setting out a vision for the country to become ‘the ultimate AI launchpad’, where AI innovation can be piloted and then scaled globally. Central to this vision are pilot projects designed to improve the lives of citizens, enhance public service efficiency, and drive economic growth. These initiatives span sectors like healthcare, education, tourism and utilities, offering the potential for significant national impact.

Whether you’re a business leader or a policymaker, the implications of AI for Malta are too significant to ignore

AI will bring substantial gains in productivity, a key driver of economic growth, and help organisations unlock the potential of their existing workforce by reducing constraints related to human resource limitations.

AI is already being deployed across industries globally, and Malta is no exception. In sectors like software engineering, AI has been shown to increase productivity by over 60%. In creative fields such as marketing and media, AI significantly shortens the time from concept to production. Organisations are starting to integrate AI into their operations, using it to optimise and automate processes, enhance decision-making and improve customer experiences.

According to a recent report by the Tony Blair Institute, AI’s impact on public services is predicted to yield a 20-fold return on investment through optimisation alone. However, if Malta can establish itself as a leading model data and AI ecosystem in Europe, the results could be even more transformative. Such an investment could fundamentally alter our economic trajectory and propel us into a future that far exceeds our current ambitions. The critical issue is no longer whether we should invest in AI, but how we unlock its potential and ensure our investment is bold enough to match the opportunity.

Consider the findings from the Alan Turing Institute’s recent study. It estimates that up to 84% of complex yet repetitive government service transactions could be automated with the help of AI. For Malta, this represents a dual opportunity: enhancing public sector efficiency while reallocating human resources to higher-value tasks, which in turn may increase the pool of local workers for employment across the private sector.

Malta is already making strides in harnessing AI’s potential, but more can, and must, be done. We have a golden opportunity to lead in AI-driven transformation − not just within our borders but on the European and global stage.

As a small nation, we can pilot ambitious projects that have the potential for outsized impact.

AI can drive efficiency in public services, enhance healthcare experiences and outcomes, and transform education. It can also create new industries and jobs we can scarcely imagine today. However, this will only happen if we are bold in our vision and back it with the investment and prioritisation needed to deliver swiftly.

This is why the EY Future Realised Malta 2024 event is so timely and important. On October 23, we will gather at the Mediterranean Conference Centre in Valletta to explore Malta’s potential to realise its AI ambitions and how to move from aspiration to action.

The decisions we make today will shape Malta’s place in the AI-driven world of tomorrow. Whether you’re a business leader or a policymaker, the implications of AI for Malta are too significant to ignore. Be part of the discussion as we explore and map out Malta’s AI trajectory.

Join us at the EY Future Realised Malta 2024 conference, ‘Envisioning Tomorrow, Today’ as we reflect on two decades of EY’s FDI research and envision the next 20 years. We will explore the results of EY’s Malta Attractiveness Survey and navigate Malta’s future through five key perspectives: build, share, engage, generate and change.

Theo Dix is a senior manager leading EY’s strategy consulting practice, EY-Parthenon, and Michael Azzorpardi is EY Malta partner and technology consulting lead.