Malta, a small island nation in the Mediterranean, has partnered with OpenAI to provide free access to 'ChatGPT Plus' for all of its approximately 540,000 citizens for one year. This initiative reflects the government's struggle, as tourism is its primary source of income. The remnants of medieval history scattered across the island are insufficient for survival in the AI era, prompting the government to focus on enhancing the AI capabilities of its citizens.
Located in the center of the Mediterranean, Malta lies south of Sicily, Italy. While Maltese is the official language, English is widely spoken. Once a popular destination for language studies, Malta's small land area and low rainfall make agriculture challenging. Tuna farming is a key industry, but it accounts for only about 1% of the country's GDP. Tourism remains the sole significant economic driver.
The Knights of St. John, who were displaced after their defeat by the Ottoman Empire on the Greek island of Rhodes, found refuge in Malta after Pope Clement VII persuaded Holy Roman Emperor Charles V to grant them the island in exchange for an annual tribute. Once settled, the Knights positioned themselves as defenders of the Christian world, engaging in piracy against the pagan Arab population. Despite the Ottoman Empire mobilizing 40,000 troops to conquer Malta, the Knights and local militias successfully defended the island with just over 500 fighters. Their victory laid the foundation for modern Malta, attracting support from across Europe, leading to the construction of fortifications and ornate buildings that now adorn the island.
Today, Malta is one of Europe's major vacation destinations, with its densely packed Baroque buildings and churches appealing to those seeking a glimpse of the medieval era. However, with 80% of the population employed in the service sector, the economy faces significant risks.
In response to the lack of diverse industries, the Maltese government has opted for digital transformation. While the small population allows for such initiatives, Malta is the first country to offer a year of free AI services to all citizens. To access these services, citizens must complete a government-sponsored AI training program. This approach aims to address workforce shortages and educate the public on the ethical implications of AI, maximizing administrative efficiency.
What could happen if all citizens freely utilize AI? Although Malta lacks a robust electronics or heavy industry sector, the AI era may present new digital opportunities for its people.
Malta's digital experiment is not its first. A few years ago, the country branded itself as the 'Blockchain Island' by passing groundbreaking virtual asset laws, attracting global capital, including the world's largest cryptocurrency exchange, Binance. However, the government’s decision to suspend regulations for two years to facilitate the industry backfired, leading to a proliferation of unverified scams and a decline in national creditworthiness.
As the country began to enforce regulations, exchanges and global companies departed, having exploited the favorable conditions. Rather than succumbing to these challenges, the Maltese government has committed to transforming the entire nation into an 'AI laboratory.' Unlike past efforts to attract AI startups through regulatory relaxation, this time the focus is on integrating AI at a national level as a practical survival strategy. This decision reflects a commitment to learning from past failures and building foundational strength.
While Malta seeks to rapidly import advanced technologies and establish itself as a 'demand-driven testing ground,' South Korea is pursuing a 'supply-driven' approach to building 'Sovereign AI' capabilities. This strategy aims to avoid technological dependency and protect data sovereignty. With strengths in semiconductors, electronics, and heavy industry, South Korea is expanding its AI competitiveness into physical AI.
Despite its competitive advantages, South Korea still has a long way to go. The National AI Strategy Committee, directly under the President, is currently working on over 300 policy initiatives. While many discuss AI, the industry has yet to establish a stable revenue structure. Progress cannot occur without trial and error. Although Malta and South Korea differ in scale and strategy, both share the commonality of being resource-limited and having small populations.
Both countries recognize that bold and sophisticated policy experiments led by the government are essential for survival in the AI era. To avoid becoming data colonies of big tech companies, they must navigate through necessary trials and errors. Concerns about the 'national AI representative' are prevalent, and the Ministry of Science and ICT fears that initial successes may not be sustainable.
However, the government should not shy away from regulation out of fear of failure, as this could stifle industry growth. It is time to accelerate the development of Sovereign AI and undertake bold public-private AI integration experiments, as those who hesitate will miss out on opportunities for innovation in the harsh realities of the IT landscape.
* This article has been translated by AI.
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