14/11/2025 20:30:00

Governor Scicluna highlights role of AI in sustaining Malta’s growth

Professor Edward Scicluna, Governor of the Central Bank of Malta,  addressed the annual dinner of the Institute of Financial Services for Malta.

He noted that while the global economy has shown resilience it remains fragile.

In Malta, growth continues to outpace the EU average, with stable inflation, record low unemployment, and strong financial stability.

With the labour market exceptionally tight, productivity must drive future prosperity, though rapid growth is also straining infrastructure.

Artificial intelligence (AI) could help by improving efficiency and reshaping the labour market. Malta's digital readiness is encouraging, but reskilling and upskilling are essential to ensure that society benefits fully.

The Governor observed that AI's economic impact is uncertain and depends on adoption speed and investment intensity. While it could raise productivity and dampen inflation over time, high energy and capital costs may initially push prices up.

AI is already transforming financial services - from credit scoring to fraud detection - and is beginning to reshape central banking through automation. Yet, it also brings new risks. In monetary policy, AI can refine models but may require quicker policy responses. In financial stability it can strengthen oversight but also heighten contagion risks if not managed responsibly.

Professor Scicluna concluded that however advanced AI becomes, it is human judgement - guided by values and purpose - that must steer its use for the good of institutions and society.

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