Artificial Intelligence

Understanding the Artificial Intelligence Sector

Artificial intelligence encompasses industries where automated decision-making, machine learning, data analytics, and algorithmic systems are embedded into products, services, or operational processes. From a legal perspective, AI activity raises issues extending well beyond technology, including risk classification, accountability, governance, intellectual property, data protection, cybersecurity, and contractual allocation of liability.

The EU Artificial Intelligence Act represents the first comprehensive regulatory framework for AI at EU level, introducing a risk-based approach that places obligations on both AI developers and deployers. Businesses must assess the level of risk posed by their AI systems and comply with corresponding legal and governance requirements. While AI systems may pose risks to users and markets, a robust legislative framework can mitigate those risks while providing greater legal certainty and encouraging responsible investment in AI-driven innovation.

Why Malta for Artificial Intelligence Industries

Malta’s relevance for AI industries lies in its combination of regulatory foresight, institutional infrastructure, and EU alignment, rather than scale.

Key factors include:

• Direct applicability of EU digital and AI regulation, including the EU AI Act
• A jurisdiction recognised for its proactive approach to regulating emerging technologies
• An established governance framework supporting responsible innovation
• English as an official language, facilitating international AI development and deployment
• A regulatory environment designed to balance innovation, ethics, and legal certainty

Malta’s National AI Strategy and Governance Framework

In 2019, Malta launched its national AI strategy, “Strategy and Vision for Artificial Intelligence in Malta 2030”, positioning the country as an early mover in AI governance and adoption. The strategy is built on three strategic pillars and three strategic enablers, aimed at fostering AI investment, innovation, and adoption while ensuring trust and accountability.

The ethical dimensions of AI are addressed through the Malta Ethical AI Framework, which sets principles to guide responsible AI development and deployment. The Malta Digital Innovation Authority (MDIA) plays a central role in overseeing AI-related frameworks and is currently realigning Malta’s national AI strategy to reflect the evolving EU AI regulatory landscape. Our lawyers closely monitor these developments to ensure that AI initiatives remain aligned with both national and EU-level requirements.

Our Artificial Intelligence Legal and Advisory Expertise

We advise AI-driven industries through an integrated legal and tax platform covering regulatory compliance, corporate structuring, private client tax, immigration, and property advisory. Our work reflects the reality that AI initiatives often span multiple jurisdictions and regulatory regimes.

Our advisory commonly involves:

• Legal structuring of AI-driven businesses and innovation projects
• Advising on EU AI Act compliance and risk classification
• Intellectual property and contractual frameworks for AI development and deployment
• Data protection, cybersecurity, and governance considerations
• International tax and operational structuring linked to AI activity

Supporting Professionals and Founders in the AI Sector

AI industries are driven by founders, technologists, engineers, data scientists, and senior executives whose work is inherently international. We advise professionals and founders operating within the AI sector on the legal, personal, and structural implications of establishing a sustained presence in Malta.

This includes advice on residence and long-term presence planning, integration of personal tax considerations with business activity, and family or continuity planning alongside innovation-led work. Our role is often that of a single legal point of coordination, aligning professional and personal legal considerations.

Innovation, R&D and AI-Focused Incentives

AI development frequently intersects with research and development frameworks, including R&D tax credits and innovation incentive regimes. We advise on the legal and tax structuring of AI-related R&D activity to support eligibility, compliance, and alignment with EU state aid principles and international tax standards.

Our focus is on structuring, documentation, and governance, working alongside technical specialists where required, rather than on outcome-driven funding claims.

Malta Citizenship by Merit for AI-Related Contributions

Malta’s Citizenship by Merit framework recognises exceptional contributions aligned with the national interest, which may include technological innovation, digital development, and applied AI research.

We advise individuals whose AI-related work demonstrates substantive and measurable contribution, assisting with legal assessment, residence planning, and the structured presentation of contributions within the statutory framework of the Maltese Citizenship Act (Cap. 188). Our advisory is strictly legal and compliance-led and reflects the post-2025 merit-based approach.

Our Approach to Advising AI Industries

We guide first movers in AI adoption by balancing innovation, trust, and legal certainty. Our advisory philosophy is grounded in the belief that delaying AI adoption due to regulatory uncertainty can itself be a strategic risk, particularly as competitors move ahead.

Our approach emphasises:

• Proactive legal leadership in emerging AI regulation
• Business-first advice grounded in legal risk management
• Innovation-driven compliance that enables, rather than restrains, growth
• Early identification and mitigation of regulatory, ethical, and operational risks

How We Support Artificial Intelligence Industries

We advise AI-driven enterprises and stakeholders on:

• AI regulatory compliance and governance frameworks
• Structuring and establishment of AI-focused businesses in Malta
• Intellectual property, data protection, and cybersecurity issues
• International tax advisory and compliance
• Residence and citizenship matters for key contributors

Our focus is on legal durability, regulatory alignment, and long-term sustainability for AI industries operating internationally.