Kyle Patrick Camilleri
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 For example, references to language-based technologies were quickly outdated with the rise of large-language models.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.
