This article examines whether dismissals prompted by artificial intelligence fall within the concept of redundancy under Maltese law. It argues that while AI-driven workforce reductions may formally satisfy the statutory test, they occupy the outer limits of the doctrine. Where the work output requirement persists and only the human element disappears, the analysis queries whether the proscriptive function of the law shifts from elimination of function to substitution of labour – a distinction that may invite stricter scrutiny by the Industrial Tribunal. The note further considers the procedural obligations that attach to such dismissals, the employer’s duty to explore alternatives, and the extent to which EU law and policy reinforce domestic protections in the context of technological displacement.

Introduction

The traditional understanding of redundancy is deceptively simple and blunt: the job disappears, therefore so does the employee. Artificial intelligence disrupts that simplicity in ways that existing legal frameworks were not designed to address.

Where once a production line might close, or undergo enhancements to the machine-driven aspects of production, and render its operatives genuinely surplus to requirements, the modern employer has the opportunity to deploy automated systems capable of performing the same tasks continuously and at lower cost. The result is the same as a machine replacing a human: the output remains. The economic activity is unchanged. What has altered is the identity of the actor performing the work.  It’s happened before, but in a post-Orwellian environment, the perception of machine substituting the human is more acute.

This gives rise to a more nuanced question: can redundancy truly exist where the work persists, but the human performing it is replaced by an algorithm?

The issue is not merely theoretical. It goes directly to the validity of dismissals, the entitlements of affected employees, and the legal exposure of employers who characterise such terminations as redundancies without properly interrogating whether that label is sustainable.

Maltese Industrial Tribunal reasoning has consistently favoured substance over form in assessing dismissals. That redundancy by reason of structural change is a valid redundancy (mechanisation taking over jobs) was accepted by the Tribunal.¹

It is open to debate today, however, whether the Tribunal would adopt the same point of view without going deeper into whether the function survives in materially similar form.  Of late, Tribunals have shown a willingness to look beyond formal restructuring and examine whether a claimed redundancy is genuine even by taking into account whether “the job still exists”.

AI-driven dismissals, especially if on a large scale, bring that tension into sharp focus.

Legal Framework

Redundancy in Malta is grounded in the Employment and Industrial Relations Act (“EIRA”), which recognises termination as lawful where it is based on a valid reason connected with the employer’s operational requirements.² While the Act does not exhaustively define redundancy, it is understood – consistently with comparative jurisprudence – to arise where the employer’s requirement for employees to carry out work of a particular kind has diminished.

Collective redundancies are governed by the Collective Redundancies (Protection of Employment) Regulations,³ which transpose Council Directive 98/59/EC.⁴ These impose mandatory procedural obligations, including consultation with employee representatives and prior notification to the Director of Employment and Industrial Relations (DIER).

At EU level, the framework is primarily procedural. Directive 98/59/EC regulates the manner in which redundancies are effected rather than defining their substantive validity.⁵ The question whether a redundancy exists remains a matter of national law, albeit one that must be interpreted in conformity with EU principles.

AI and the concept of redundancy

AI-driven redundancies expose a structural tension within the conventional redundancy model. The work continues. The output remains necessary. Only the human input is removed and replaced by automated processes.

On a literal reading of the statutory formulation – namely that the employer’s requirement for employees has diminished – such situations may fall within redundancy. However, this interpretation stretches the concept toward its outer boundary. Redundancy has historically been associated with a reduction in the need for work, not merely a reduction in the need for human labour where the work itself persists.

This distinction is not semantic. It marks the difference between:

• diminution of operational need, and
• technological substitution of labour.

If the latter is accepted uncritically as redundancy, the doctrine risks becoming a vehicle for workforce reduction of a fundamentally different character – one in which human labour is displaced while the underlying activity remains intact or is even expanded.

Genuineness and tribunal scrutiny

Maltese law requires that redundancy be genuine. The Industrial Tribunal is not bound by the employer’s characterisation of the dismissal and will assess the substance of the situation.⁶

Where AI is introduced, the Tribunal is likely to examine:

• whether the role has genuinely ceased to exist;
• whether its constituent functions continue in materially similar form; and
• whether those functions have simply been reallocated to automated systems.

A redundancy driven by operational necessity is legally distinct from one driven purely by efficiency or cost optimisation. While cost considerations may form part of an employer’s rationale, they cannot, without more, justify a redundancy where the underlying work remains substantially unchanged.⁷

The risk is that a purported redundancy may be re-characterised as an unjustified dismissal, with the consequences that follow under Article 36 of the EIRA.⁸

Procedural obligations

Under the Collective Redundancies Regulations, employers must:

• consult employee representatives in good time and with a view to reaching agreement; and
• notify DIER prior to implementing dismissals.⁹

These obligations are mandatory and independently enforceable.

In the context of AI-driven restructuring, consultation must be meaningful. It requires the employer to explain:

• the rationale for automation;
• the selection of affected employees; and
• the alternatives considered, including redeployment and retraining.

Consultation conducted after the decision is effectively finalised risks being treated as a mere formality and therefore non-compliant. This is consistent with the interpretation of Directive 98/59/EC by the Court of Justice, which emphasises the effectiveness of consultation as a substantive safeguard.¹⁰

Selection and alternatives

Employers must apply objective and non-discriminatory selection criteria and must consider whether affected employees can be retained through redeployment or retraining.¹¹

AI does not necessarily eliminate all human involvement. Many automated systems require:

• supervision;
• quality assurance;
• exception handling; and
• system training or calibration.

Accordingly, the employer must demonstrate – on the evidence – that such alternatives were genuinely explored and found to be unviable. A failure to document this exercise may be taken as evidence that it was not properly undertaken.

Unfair dismissal

Under Article 36 of the EIRA, a dismissal must be based on a valid reason and carried out in accordance with a fair procedure.¹² These requirements are cumulative.

A dismissal presented as redundancy will fail the validity test where the redundancy is not genuine. Even where a substantive justification exists, procedural defects – such as inadequate consultation or failure to consider alternatives – may independently render the dismissal unfair.

EU Law and policy context

Directive 98/59/EC establishes a procedural baseline for collective redundancies but leaves substantive definitions to national law.¹³

However, broader EU instruments, including the European Pillar of Social Rights, articulate policy commitments to:

• fair working conditions;
• protection against unjustified dismissal; and
• support for workers affected by labour market transitions, including technological change.¹⁴

While not directly enforceable in the same manner as directives, these instruments exert interpretative influence. Where domestic law admits of more than one reading, an EU-conforming approach may favour stricter scrutiny of dismissals arising from technological substitution.

Transfer of business

The impact of the acquired rights protection regimen also bears some consideration.  The law, prompted by EU-level regulation, tends towards protection of workers whose job has been “moved on”.  In this case, one is looking at moving the job to ChatGPT or Claude or Perplexity (this one is invented) but there’s something to be said for this aspect also having an impact.

Conclusion

AI-driven redundancies may occupy contested legal ground. While they may satisfy the literal wording of the statutory test, they challenge the conceptual foundations of redundancy by decoupling the disappearance of work from the dismissal of workers.

They therefore attract heightened scrutiny. The Tribunal is likely to examine not only whether the employer’s need for employees has diminished, but also whether the underlying work has in fact disappeared or has merely been reassigned to automated systems.

Employers contemplating AI-driven workforce reductions must engage seriously with both the substantive and procedural dimensions of redundancy. These are not formalities to be addressed retrospectively, but conditions that determine whether the redundancy label is legally available.

The trajectory of the law is already discernible: dismissals that substitute human labour with algorithmic processing, without a genuine diminution in the work itself, will be treated with caution. Those who treat this terrain as settled rather than contested do so at their peril.

Andrew Borg-Cardona is a lawyer, graduated in 1980, with a particular interest in employment law.

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Footnotes

1. See generally the approach of the Industrial Tribunal favouring substance over form in dismissal cases under Chapter 452 of the Laws of Malta. (See also GWU v De La Rue 1998 per Debono C et)
2. Employment and Industrial Relations Act, Chapter 452 of the Laws of Malta, Article 36.
3. Subsidiary Legislation 452.80, Collective Redundancies (Protection of Employment) Regulations.
4. Council Directive 98/59/EC of 20 July 1998 on the approximation of the laws of the Member States relating to collective redundancies.
5. Ibid., particularly Articles 2–3.
6. EIRA, Article 36; see also consistent Tribunal practice assessing the real reason for dismissal.
7. Compare UK jurisprudence for persuasive guidance: Murray v Foyle Meats Ltd [1999] ICR 827 (HL), confirming that redundancy may arise where the employer’s need for employees diminishes, though not determinative in Maltese law.
8. EIRA, Article 36(2).
9. Subsidiary Legislation 452.80, Regulations 4–5.
10. Case C-188/03 Junk v Kühnel [2005] ECR I-885, emphasising the timing and effectiveness of consultation.
11. Derived from general principles of fair dismissal under EIRA and Tribunal practice.
12. EIRA, Article 36.
13. Directive 98/59/EC, cited above.
14. European Pillar of Social Rights (2017), Principles 5 and 7.

The post Artificial Intelligence and Redundancy under Maltese Employment Law – an examination of the borders of the law first appeared on The Malta Business Weekly.

Following the publication of its interim results which confirmed the solid growth across all of its core business verticals, IZIGROUP is looking at 2026 with renewed momentum and clear strategic intent. We met with Johann Schembri – Founder and CEO of IZIGROUP – to discuss the Group’s performance for the first half of the financial year, the drivers behind its sustained growth, and the opportunities emerging beyond the domestic market. He also outlines the Group’s imminent return to the capital markets with a new bond issue as it builds on the success of its debut bond listing in March 2022.

The Group has just reported very strong interim results for the period July to December 2025. How would you describe the performance?

We are extremely encouraged by the momentum we have built across the Group, and I am pleased to confirm that these interim results represent record performance across all our business verticals — the National Lottery, Dragonara Casino, and our iGaming operations.

Group turnover for the 6-month period reached €561 million, reflecting a 25% year-on-year increase, while Gross Gaming Revenue rose to €53.9 million, up 19% compared to the same period last year. Importantly, this strong top-line growth was complemented by disciplined cost management, enabling us to deliver record EBITDA of €18.1 million – a 35% year-on-year increase.

Profit before tax reached €6.9 million, representing growth of 156% over the prior year. This performance demonstrates the strength of our diversified operating model, the quality of execution across our teams, and the scalability of our platform as we continue to grow both locally and internationally.

What is driving these results and what does it say about the Group’s competitive positioning?

These results have exceeded our expectations and are fundamentally driven by the strength and resilience of our diversified operating model. Our land-based operations – including the National Lottery and Dragonara Casino – together with our growing iGaming presence, have each delivered solid contributions to overall performance.

This balanced portfolio enables us to optimise revenue streams across different channels and customer segments, while mitigating volatility. At the same time, disciplined cost management and operational efficiency have translated top-line growth into meaningful margin expansion.

Strategically, this performance reinforces our competitive positioning. It reflects strong brand equity, continuous product innovation, a growing, efficient and well- established distribution network, and an unwavering commitment to responsible gaming.

You mentioned in other interviews in 2025 that the Group is still pursuing a growth strategy. What else can you tell us about this forward- looking growth strategy?

IZIGROUP has been a strong catalyst for growing the land-based gaming market in Malta. Despite navigating through unprecedented disruption during the COVID-19 pandemic, we have emerged stronger and now reaping the benefits of a more resilient market that has surpassed the €124M mark.

While we are protagonists in our home market, our ambition is to translate this success internationally. Over the past few years, we have been methodically laying the groundwork for international growth. We have built a highly experienced leadership team, invested in scalable and compliant platforms, and strengthened our brands to ensure they are export ready.

Our multi-channel presence and expertise in lottery and land-based casinos position us well for taking on the challenges of operating in larger scale markets. We are entering this new phase with great optimism, supported by a strong financial performance and only after having developed a very robust process for the identification of opportunities stemming from B2B and concession-based projects, predominantly in the EU.

In 2022 the Group resorted to the capital markets to finance its growth prospects. What can you tell us about this, and what can you tell us about the current second listing?

IZI Finance plc, the financing arm of IZIGROUP made a successful debut bond listing in March 2022 raising €30 million in the process. That transaction marked an important milestone for the Group, providing the capital required to execute key strategic initiatives in our home market, particularly within the lottery vertical.

The success of that issuance demonstrated strong investor confidence in our business model, governance framework, and long-term strategy. The proceeds were deployed in line with our stated objectives, contributing to the solid performance and growth trajectory we are reporting today.

Building on this foundation, we have gone back to the capital markets again, with the intent to raise another €30 million via a 5.5% bond issue due in 2036. The proceeds will primarily support the next phase of our international expansion strategy with a tried and tested business model as we leverage our strong brands and operational acumen to scale our business and reduce the dependency on the local home market.

Investors may participate in this bond issue through their stockbroker of choice until 24th March. We view this issuance as a natural progression in our strategic roadmap – strengthening our funding base while providing investors with the opportunity to participate in the Group’s next phase of growth.

Finally, what’s your outlook for IZIGROUP going forward?

We view the future with confidence. The solid results we have delivered reinforce both the strength of our strategy and our ability to execute consistently across all our business verticals. We have built a comprehensive infrastructure capable of supporting the generation of turnover in excess of €1 Billion and Gross Gaming Revenues of over €100 million per year, respectively.

Looking ahead, our focus remains clear: we’ll continue to prioritise innovation, responsible gaming, and disciplined growth, expanding not just within Malta’s gaming ecosystem, but also into international markets where we see meaningful opportunities.

Our ambition is not growth for growth’s sake, but sustainable value creation underpinned by strong governance, operational expertise, and long-term strategic clarity.

The post From market leadership to international ambition first appeared on The Malta Business Weekly.

Speaking as the National Youth Council presented the 2025 work report of the National Youth Parliament, Abela said the government is currently reviewing existing legislation with the aim of introducing penalties for the misuse of artificial intelligence to harass, blackmail or bully individuals.

Abela compared the planned reforms to earlier laws introduced to address cyberbullying and cyberstalking, arguing that similar legal safeguards are now needed to deal with the risks posed by AI-generated content. He said that while the government is actively promoting the use of artificial intelligence through measures announced in the Budget, it also has a duty to ensure that these technologies are used in a safe and responsible environment.

“The same way we intervened to deal with cyberbullying and cyberstalking, we will also act so that the use of deepfakes to harm people is penalised appropriately under our laws,” the Prime Minister said.

Artificial intelligence and youth participation in public life were the two main themes addressed by the Youth Parliament in 2025. In his remarks, Abela said young people are playing a central role in shaping Malta’s long-term development strategy, Vision Malta 2050, and will be key to its implementation.

He said the vision, which looks ahead to the next 25 years, directly affects those who are now preparing to enter the workforce or start families. Young people, he added, are catalysts in shaping national policy on major issues such as fertility rates, environmental protection and the balance between work and family life.

The meeting was also attended by Education, Sport, Youth, Research and Innovation Minister Clifton Grima, Parliamentary Secretaries Andy Ellul and Keith Azzopardi Tanti, Cabinet Secretary Ryan Spagnol and members of the Youth Advisory Forum.

The post Government to draft new laws targeting abusive use of deepfakes, PM Abela says first appeared on The Malta Business Weekly.

Artificial Intelligence from Science Fiction to Reality examines various aspects, starting with the evolution of human and artificial intelligence (AI). It places AI in its proper context and discusses non-technical aspects, such as philosophical and social issues. The major challenge leaders are likely to encounter is deciding what functions are to be entrusted to AI and how humanity can exercise control over them. The book also focuses on the hardware and software technology that support AI, and the essential cyber security systems that are required to address the evolving AI threat landscape. It examines centres for AI safety that are nonprofit research organisations, which focus on the mitigation of AI risks by proposing solutions against threat actors.

The book discusses the knowledge-based economy, particularly Enterprise AI, and examines the ethical and legal issues that emerge from the practical implications of AI. While most governments have endorsed voluntary ethical and moral charters, there is a reluctance to introduce binding legislative measures. This reluctance is based on the premise that specific laws might hinder AI innovation. Furthermore, detailed private and public sector case studies are presented that demonstrate how AI applications may be successfully implemented according to a practical framework. A detailed discussion about the implications for human development is presented. The differences between key economic approaches, such as knowledge-based economy, digital economy and automated economy are examined, and how these will be impacted by AI in relation to job displacement, data privacy and security, and algorithmic bias. Finally, the book also examines the era beyond AI where organoid intelligence is emerging. It explores future human development where humans could be turned into cyborgs with hi-tech machine implants, re-growable limbs and nanotechnology that repair damaged tissue, rejuvenating human cells leading to immortality.

Silvio Schembri, Minister for the Economy, Enterprise and Strategic Projects, said: “Dr Camilleri’s book Artificial Intelligence from Science Fiction to Reality provides a timely and thought- provoking exploration of how AI is reshaping our economies and societies. It successfully bridges the technical, ethical, and strategic dimensions of AI, offering valuable insights for policymakers, industry leaders, and the public alike. As Malta continues to champion innovation while safeguarding human values, this book makes a welcome and relevant contribution to the ongoing dialogue on responsible AI adoption.”

Extract from foreword written by Dr Robert Abela, Prime Minister of Malta. “This book is especially significant for Malta. As a nation that has persistently exceeded expectations in digital technology adoption and innovation, Malta is situated at a pivotal juncture of opportunity and accountability. Over recent years, our government has made huge investments in digital infrastructure, e-government services, emerging technologies, and cybersecurity. In consideration of the present and future, as articulated in the Vision 2050 for Malta, artificial intelligence serves as a pivotal driver for national prosperity and the transformation of the public sector, fostering innovation, enhancing citizen services, and ensuring that the government remains adaptable and proactive in an increasingly digital landscape. The role of visionary leadership, such as that demonstrated by Dr Camilleri, can empower a smaller state to assume a prominent role in the global digital discourse.”

Emanuel Camilleri is a visiting senior lecturer at Malta University and has authored several books. His most recent publication is “Key Performance Indicators: The Complete Guide to KPIs for Business Success” (Routledge, 2024). He has occupied senior management posts in industrial engineering, finance and ICT sectors in Malta and Australia. Recently, he was appointed Chairman of the Planning Authority, Planning Board, Malta.

Other publications authored by Eur. Ing. Dr Emanuel Camilleri for international distribution

The post AI in context: Evolution, ethics, security and the future of humanity first appeared on The Malta Business Weekly.

Malta’s startup ecosystem is gaining real momentum. In 2025, it generated an estimated $4.2 billion in value, outperforming global trends as the worldwide average declined by 14%. The island has become one of the most efficient markets for early-stage investment, where startups attract competitive funding while retaining more ownership. Growth is driven mainly by fintech, life sciences, and digital technologies, reflecting a maturing and resilient ecosystem focused on long-term innovation.

X-faces focuses on a field that has become central to every digital business: identity verification. The company’s technology is particularly relevant to sectors such as iGaming, where operators face constant pressure to balance regulatory compliance, fraud prevention, and a seamless player experience. It applies AI and machine learning to enhance Know Your Customer (KYC) procedures. Its system analyses data and behavioural signals to distinguish genuine users from potential threats in real time. By combining security, accuracy and efficiency within a single, fully integrated platform, X-faces enables businesses to onboard legitimate users faster while identifying and blocking fraudulent or high-risk profiles before they cause harm.

“Digital identity is becoming the foundation of every online interaction,” says Co-founder and CTO Maksim Karandashov. “Our goal is to make verification systems adaptive to modern risks. KYC is no longer just about checking documents. It’s about understanding user behaviour and using technology that evolves alongside fraud tactics.”

Today, X-faces works with clients across Europe, where its technology has already shown excellent results in reducing fraud and increasing verified-user retention. In Romania, the company provides KYC solutions to Million.ro, one of the country’s well-known iGaming brands. The cooperation is now deepening as the platform prepares to launch a new project with X-faces integrated from the outset.

“KYC today is a strategic business tool rather than a formality,” adds Co-founder and Managing Director Aleksey Armach. “It enables companies to understand their users better, anticipate risks, and make informed decisions. When verification becomes seamless and intelligent, it supports growth while maintaining safety and integrity online.”

X-faces represents a new generation of tech companies, blending artificial intelligence, cybersecurity and data analytics to address one of the most pressing challenges of the digital era: trust.

What stands out in Malta’s current wave of technology ventures is their clarity of purpose. These companies are not experimenting for the sake of innovation; they are solving practical problems that affect businesses everywhere. It’s this pragmatic focus, rather than scale alone, that is quietly giving Malta a significant place in Europe’s wider tech conversation.

The post How Malta’s X-faces is using KYC as a strategic winner first appeared on The Malta Business Weekly.

Picture Republic Street on a July afternoon. A German cruise passenger dips into a souvenir shop, grabs a triton-blue glass bowl, taps her phone on the terminal and walks out before her tour guide has finished counting heads. Moments later, a sixth-form student tops up his Tallinja card inside a boiling bus shelter, meets the biometric prompt on his screen with a quick thumb-press and hears the familiar beep of a successful load. Neither buyer sees a text message. Neither waits for a one-time password that may never arrive. Behind both transactions lies the quiet upgrade known as EMV 3-D Secure 2.3, the latest safety net the card schemes have rolled out to tell real shoppers from fraudsters without killing the checkout queue.

Maltese merchants know the pain of earlier versions. The first 3-D Secure felt like a trapdoor: a pop-up box demanded a long-forgotten static password, and many holidaymakers abandoned the basket. Version 2.1 removed some friction but still asked visitors to plough through redirects that looked like phishing pages. Version 2.2 reduced challenge rates, but it often rejected legitimate cards due to the issuing bank’s lack of context. Was the cardholder truly in Żebbuġ, or did a scammer in Kiev copy the number? The new 2.3 build tips the balance at last. It lets the shop’s payment gateway pass richer clues, such as device ID, previous spend patterns, and whether the customer used Face ID at the start of the session, straight to the bank in the background. With those extra crumbs, the bank can wave through low-risk sales inside half a second and reserve the heavy checks for the dodgy ones. When extra proof is still needed, the protocol keeps the shopper in the same window and leans on the phone’s built-in fingerprint or face reader, so the screen never jumps and roaming charges never block an SMS.

Early pilots of 2.3 in Spain and the Netherlands show challenge rates falling for domestic and cross-border card processing. That matters because fraud in Malta exceeds the EU average. Every notch of extra trust means fewer chargebacks and, over time, lower processing fees that filter back into menu prices. The gains are not just for bricks-and-mortar tills. Try booking an online lesson on your phone. In the past, you hit “pay now” and waited for a bank code that might arrive after you lost signal. Under 2.3, the merchant can flag the transaction as “decoupled”, collecting your details on Monday but asking the bank to authorise only when the deposit is due on Wednesday. You enjoy a clean booking flow; the bank still gets time to weigh the risk. Small-ticket buys improve as well. The spec supports a ‘data-only’ flow that lets merchants share extra data with the issuer without full authentication. The merchant sends a risk profile to the bank, which checks it in the background. If either party detects a problem, the payment is stopped before any funds leave the account, preventing later disputes.

Switching to the new system should be relatively easy. In fact, for most local shops, it boils down to four quick checks. First, call your payment provider or bank and ask: “Does our till already send the extra fraud-fighting clues to card issuers?” Those clues include little things like whether the customer checked out as a guest, how old the shipping address is, and if a loyalty card was used. They’re free to pass on and provide the bank with the missing context that prevents good sales from being blocked. Second, update the payment plug-in inside your app or website. The latest version recognises the phone’s fingerprint or face reader, allowing customers to stay on the same screen without being redirected to a potentially suspicious pop-up. Third, make sure there’s a safety net. If a tourist’s bank or an older handset can’t handle 2.3 yet, the transaction should quietly fall back to the previous version rather than fail outright. Finally, brief your team. A card terminal might now ask for a thumbprint and display a prompt. A simple line, “Just place your finger on your phone, please”, will keep the queue moving and the smiles flowing.

What of privacy? More data points change hands, but each travels inside a cryptogram and never lands on the merchant’s server. Under the GDPR, your gateway must display a brief notice indicating that device information aids in the fight against fraud. Most shoppers skim and tap “agree” because the benefit is clear: they have a lower risk of their card being copied and a lower chance of their holiday purchase being declined. Still, a merchant who stashes raw card numbers on a back-office computer should stop immediately. Modern payment tools store only a scrambled stand-in for the card, so even if someone hacks your computer, they find nothing they can spend.

Will the upgrade end fraud entirely? Of course not. Card thieves will hunt weaker links such as mule accounts and fake identities. Yet by making genuine purchases almost invisible to the customer, 2.3 shrinks the space for criminals. The protocol is global, so a stolen French card that fails in Valletta today helps block a similar attempt in Vienna tomorrow. For the man on the street, the change feels almost boring: the payment simply works. And that is the point. Technology should protect, not pester.

So, whether you run a stall at Marsaxlokk market or a boutique hotel in Mdina, tick four boxes: confirm your gateway speaks 2.3, pass every safe data crumb you can, enable biometric prompts, and coach your staff. Do that and you will greet the coming tourist rush with shorter queues, happier guests, and a budget that shrinks instead of swelling. For everyone else, the result is straightforward. Tap. Pay. Done. Then get on with the real summer business; an extra scoop of helwa tat-turk ice-cream, perhaps, or another quick dip at St Peter’s Pool, without a single thought for the invisible shield guarding your card along the way.

Prof. Alexiei Dingli is Professor of Artificial Intelligence

The post Tap, pay, done: How the new system stops fraudsters without slowing your shopping spree first appeared on The Malta Business Weekly.

This follows serious concerns expressed by a number of gaming companies licensed by the Malta Gaming Authority about the legal decisions being made by Austrian civil courts, the statement said. Several gaming companies have presented a series of rulings issued by the Austrian Supreme Court and the District Court of Salzburg, which extend jurisdiction beyond Austria’s territorial borders.

In particular, judgments in favour of Austrian players are being enforced against assets located in Malta, held by companies licensed by the Malta Gaming Authority and by third-party entities acting on their behalf. This practice bypasses the enforcement procedures established under European law and undermines the principle of territoriality in international law.

Another separate case involves a ruling by the Austrian Supreme Court that declared the District Court of Salzburg as the competent authority to enforce a judgment requiring a Malta-licensed gaming company to reimburse gambling losses incurred by an Austrian player. These decisions by Austrian judicial authorities on an entity regulated in Malta have raised serious questions about jurisdictional sovereignty. Even worse, they denied the Maltese entities the right to respond and be heard, completely excluding them from the judicial process.

MEP Alex Agius Saliba stated that “this practice is unacceptable and constitutes a serious interference in Malta’s sovereignty while compromising the integrity of its regulatory framework. At the same time, it undermines trust in Austrian institutions and creates a dangerous precedent in how enforcement is carried out within the Union.”

Agius Saliba called on the European Commission to take steps, investigate the matter, and clarify whether these enforcement practices by Austria are compatible with European law. “Only in this way can we offer reassurance to the affected companies and find solutions to safeguard the gaming industry in Malta,” concluded Agius Saliba.

The post Agius Saliba calls for European Commission action to safeguard gaming industry in Malta first appeared on The Malta Business Weekly.

As someone deeply passionate about both iGaming and data, I chose to focus my dissertation on how iGaming companies are leveraging Big Data analytics to enhance their marketing strategies and maintain a competitive edge. Through in-depth interviews with professionals in Malta’s thriving iGaming sector, my research explored not just the technologies being used, but also the real-world challenges, human expertise, and ethical considerations shaping this data-driven industry.

What became clear early on is that while every business talks about being “data-driven”, in iGaming, this is a non-negotiable. The sheer volume of customer data generated daily, across platforms, devices, and markets, means that companies can either harness this data strategically or fall behind.

One of the key takeaways from my research was how integral cloud-based tools and data visualisation platforms have become. Technologies like BigQuery, Snowflake and Power BI are now standard in most iGaming companies, allowing teams to store, access, and analyse vast datasets at scale. What is more interesting is how these tools empower departments beyond data analytics – marketers, product managers and executives – to visualise customer behaviour and make informed decisions in real time. This level of accessibility fosters a culture where data is no longer just the domain of analysts but a shared asset driving strategic choices across the business.

However, what truly differentiates market leaders is not just the technology they use, but the talent they invest in. From my conversations, it became evident that the real competitive advantage lies in the people who interpret and act on the data. Skilled analysts, data engineers and business intelligence experts play a critical role in extracting value from complex datasets. Their expertise enables companies to move beyond basic reporting and into predictive modelling, forecasting customer lifetime value (LTV), optimising marketing spend and tailoring player experiences.

One example that stood out was the use of predictive analytics to calculate LTV. By estimating the potential value a player might generate over time, companies can make smarter decisions on acquisition costs and personalised incentives. This is a game-changer in an industry where customer loyalty is hard-won and expensive to maintain. Several professionals I interviewed explained how LTV models now guide not just marketing budgets but also CRM strategies, ensuring that high-value players receive tailored experiences that increase engagement and retention.

Artificial Intelligence (AI) is also becoming a central player in this ecosystem. AI-driven models are being used to predict player behaviour, automate real-time campaign adjustments and personalise offers based on individual preferences. Some companies are even experimenting with AI “co-pilots” to assist in content creation and customer interactions. This not only boosts efficiency but also enhances the customer experience, offering players exactly what they want, when they want it.

Of course, it is not all smooth sailing. My research also highlighted several challenges, particularly around data fragmentation and regulatory compliance. In a sector as highly regulated as iGaming, navigating data privacy laws like GDPR while maintaining effective marketing strategies is an ongoing balancing act. The industry is also grappling with the shift towards a “cookieless” world, which threatens to limit the data available for targeting and personalisation. Leaders I spoke with acknowledged that compliance is not just a legal necessity, it is a competitive differentiator that builds long-term trust with players.

Another recurring theme was the rising cost of data infrastructure. Cloud solutions may offer scalability, but they come at a significant financial investment. Add to that the need for continuous upskilling of teams, and it is clear that succeeding in this data-driven landscape requires both strategic foresight and resource commitment.

What I found most inspiring, however, is the resilience and adaptability of the professionals driving this industry forward. There is a growing recognition that the real power of Big Data does not come from the technology itself but from how companies use it to foster meaningful player relationships, make smarter decisions, and stay agile in a rapidly evolving market.

For business leaders in iGaming and beyond, the takeaway is clear: Investing in the right data tools is essential, but investing in the people and processes that turn data into action is where the real competitive edge lies. As markets become more saturated and regulations tighten, those who can leverage data ethically, creatively, and strategically will be the ones who thrive.

The post Big data, big wins: Leveraging data analytics for market leadership in iGaming first appeared on The Malta Business Weekly.

Malta’s standing as a hub for financial services and iGaming brings growth, jobs and international attention. Banks, payment providers and online gaming operators come here for a stable regulatory framework and a skilled workforce. That success also attracts risk. Financial crime, money laundering and problem gambling are constant threats. The volume and velocity of modern activity make it impossible for human teams to track everything unaided. Used well, artificial intelligence can act as a new line of defence by supporting human judgment rather than replacing it.

For years, many institutions relied on static anti‑money laundering rules. Threshold triggers generated a large number of alerts, overwhelming analysts and still missing sophisticated schemes. AI changes the approach. Machine‑learning models can study historic and live transactions to spot unusual patterns and adapt as criminal tactics evolve. In practice, this moves firms from box‑ticking to risk‑led monitoring. Alerts become more precise, and scarce compliance time goes to the cases that matter.

Onboarding is an equally important pressure point. Know Your Customer checks must be quick enough to avoid losing legitimate clients, yet robust enough to keep criminals out. AI tools help verify identities and assess risk by reading and cross‑checking documents, registry data, media reports and other public sources. Natural language processing can sift large volumes of unstructured information for red flags in seconds. The result is faster processing with a lower error rate. That said, the technology is only as good as the data behind it. Poor data or opaque models can introduce bias, so firms must combine efficiency with explainability and sound data controls.

The gaming sector remains one of Malta’s economic pillars and illustrates the balance required. The Malta Gaming Authority sets expectations on player protection, including self‑exclusion options, deposit limits and staff training. Enforcing these policies across thousands of players and multiple platforms is resource-intensive. AI can help by monitoring behaviour at scale. Real‑time analysis of gameplay can identify markers of harm, such as rapid increases in spending or time online. Where risk is detected, operators can trigger targeted interventions, for example, a cooling‑off prompt, a message that points to support services or a temporary limit on activity.

To achieve this, trustworthy use of AI is essential. Clear principles should guide deployment: accountability, fairness, transparency, data integrity, security and privacy. Operators need to keep humans in the loop and tell customers when automation is being used. Models should be tested for bias and audited regularly. Without a firm governance framework, technology can backfire and erode confidence among players and regulators alike. The goal is not surveillance for its own sake but timely, proportionate interventions that reduce harm.

Financial institutions face many of the same issues as operators. Traditional rules generate heavy workloads and too many false positives. Well‑designed models can cut the noise and improve detection rates. Predictive analytics allows teams to anticipate suspicious movements before losses occur. By aggregating insights across clients, products and geographies, institutions can identify emerging risks earlier, including new laundering typologies or the misuse of crypto assets. These insights help firms allocate resources more effectively and support better policy-making by supervisors.

None of this removes the need for transparency. Regulators in Malta and abroad expect auditable decisions. If a system flags a client as high risk, a compliance officer must be able to explain why. That is harder with complex deep‑learning models. Firms, therefore, need to balance power with interpretability and reserve the most opaque techniques for use in cases where they can be explained and governed. Documentation, model validation and regular review are not box‑ticking exercises. They are the basis of defensible compliance.

People remain central. AI will not run a compliance function on its own. Teams need the skills to understand outputs, challenge assumptions and set thresholds that reflect real risk. Many firms have found value in embedding data specialists directly within compliance so that technical and regulatory expertise sit side by side. Training should cover data quality, model limitations and ethical use, not just tools. The strongest programmes pair technology with a culture that encourages staff to speak up when something does not look right.

Integrating AI into anti‑money laundering and responsible gaming frameworks is a significant undertaking. Models must be trained on representative, high‑quality data. Privacy obligations must be respected at every step. Bias has to be tested for and mitigated. There is competition for experienced data scientists, and compliance professionals are already stretched. Yet the prize is substantial: better detection, faster onboarding, lower operational cost and higher confidence among customers and regulators.

The choice for Malta is not whether to use AI, but how to use it well. The island has an advantage in its compact size, concentration of expertise and established regulatory infrastructure. If firms invest in specialist talent, strengthen governance and keep humans firmly in control, AI can help Malta’s flagship sectors set standards rather than chase them. That will protect consumers, deter criminals and reinforce the country’s reputation as a trusted, innovative jurisdiction.

The post The new watchdog: Using AI to ensure compliance and conquer fraud in Malta’s financial and iGaming hubs first appeared on The Malta Business Weekly.

As Malta charts its digital trajectory, two major developments spearheaded by the Malta Digital Innovation Authority (MDIA) are shaping the roadmap ahead. MDIA CEO Kenneth Brincat has signaled a strategic recalibration of the country’s AI policy framework and announced Malta’s entry into the EU-wide digital identity ecosystem with a mandatory digital wallet by December 2026. Together, these initiatives underscore Malta’s resolve to modernize its public and private sectors, while positioning itself as a resilient, future-ready digital hub.

A strategy reboot: AI for wellbeing, not just growth

Malta’s National AI Strategy, introduced in late 2019 with an 11-year horizon toward 2030, initially emphasized AI’s economic potential through public-sector adoption as a catalyst for business uptake. Today, however, Kenneth Brincat admits that Malta is “a bit late” in fully capitalizing on AI’s rapid maturation

To stay competitive, the MDIA has initiated a Vision Realignment, a mechanism to refresh the AI strategy every year or two – replacing obsolete provisions and sharpening focus on ethical, societal-wellbeing outcomes alongside economic growth. For example, references to language-based technologies were quickly outdated with the rise of large-language models.

The strategy’s expansion now spans culture, sports, health, and arts – domains where AI’s transformative potential is matched by ethical considerations. The updated framework intentionally addresses the controversial use of AI in artistic creation and film, and seeks to balance innovation with protection of creative integrity.

One tangible success under this recalibrated strategy is an AI-driven pilot in education. From 2023 to 2024, the Ministry for Education, spearheaded by Prof. Alexei Dingli, ran a pilot using AI to craft individual learning programs tailored to students – beginning with mathematics – and showing early success in personalized education.

Looking ahead, Malta must align with the incoming EU AI Act, which classifies AI use in education affecting access to learning as “high-risk,” requiring conformity assessments. The MDIA will be Malta’s first regulator with a mandatory role under that law.

Brincat also acknowledges the job displacement debate. While AI may substitute roles (such as clerical data input), he expects it will spur new jobs in tech creation and governance – paralleling past automation-driven shifts in banking. He also notes the public sector may shrink in some functions but grow in demand for digital-technology managers at entities like MITA, MCA, and Xjenza Malta.

Despite hype around blockchain, NFTs, and the Metaverse, the CEO downplayed their current relevance: blockchain work comprises under 5% of MDIA’s efforts; NFTs and Metaverse investments have largely fizzled out; instead, attention is shifting toward cybersecurity, quantum tech, and climate-conscious infrastructure.

The Malta Digital Wallet: Identity in your pocket

Parallel to AI’s strategic rethink, MDIA is also implementing Malta’s first digital identity wallet, a project made mandatory under the EU’s Digital Identity Framework by end-2026.

This voluntary, free mobile app – think “Malta Wallet” – will allow individuals to carry official identity attributes (e.g., name, nationality, date of birth) and, eventually, wearables like driver’s licences or transport cards. Unlike physical IDs, the wallet enables granular data sharing – users can confirm age without revealing address or ID number, for instance – offering both convenience and privacy.

The system will use a Wallet Secure Cryptographic Device (WSCD) for secure storage and NFC for identity checks. It will not come pre-installed – users must consciously download it – and its initial version will offer minimum identity and age verification by end-2026.

Given project complexity, full functionality may be phased in post-2026. Device binding (multiple smartphone access) remains under evaluation at EU and local levels.

Strategic synergies and emerging challenges

Together, these two initiatives reaffirm Malta’s twin commitments to digital sovereignty and societal adaptation. AI policy renewal safeguards ethical alignment and responsiveness; the digital wallet establishes a modern identity infrastructure ready for a digital-first society.

From a business and policy perspective, these moves create high-impact opportunities:

For education and creative sectors: AI programs offer long-term productivity and personalization.

For SMEs and startups: DiHubMT and MDIA’s network reinforce Malta’s innovation ecosystem.

For the public sector and regulators: Clear frameworks – like the EU AI Act and digital identity rules – enable policy-driven digital governance.

For citizens and businesses alike: The digital wallet could become the new standard for secure, selective ID verification.

Still, challenges remain: ensuring widespread adoption, managing cybersecurity risks, aligning updates with EU regulations, and mitigating environmental costs of digital infrastructure.

Malta is accelerating its digital transformation. With strategic realignment of its AI policy and the rollout of a citizen-centric digital wallet, the country is repositioning itself from late-adapter to mature innovator. The year ahead is critical: how these frameworks evolve – and how adoption unfolds in schools, businesses, and daily life – will determine whether Malta can truly hit its digital stride.

The post Malta’s digital leap: AI strategy reset and the coming “Malta Wallet” first appeared on The Malta Business Weekly.