Issue link: https://maltatoday.uberflip.com/i/1547312
10 maltatoday | SUNDAY • 25 OCTOBER 2026 NEWS Maltese firms use AI in hiring, firing and promotion decisions At least 15% of Maltese companies use AI to help them in hiring, firing or awarding promotions to employees, well above the EU average of 9% ONE in seven Maltese businesses is using or planning to use artifi- cial intelligence in decisions af- fecting employees, including hir- ing, promotions and dismissal, a survey has found. The findings emerge from the latest Eurobarometer survey on the use of AI and automated man- agement tools in European work- places. Overall, 41% of Maltese SMEs and mid-caps engage with work- place AI, broadly in line with the EU average of 42%. However, some 15% of these companies are deploying AI in human resources decisions, well above the the EU average of 9%. In the survey, human resources decisions are defined as "individ- ual personnel actions regarding hiring, promotions, and/or firing". Malta is among the high- est-adopting member states in this category, alongside Denmark (18%), Romania (17%), Lithuania (15%) and the Netherlands (14%). The figures do not mean that AI systems are independently hiring or firing workers. The survey cov- ers the use of software to assist or inform HR processes, rather than necessarily transferring final au- thority to automated systems. AI-assisted recruitment and candidate screening is also report- ed by 12% of Maltese enterprises, slightly above the EU average of 11%. Adoption reaches 25% in Denmark, 20% in Greece and 19% in Finland. As in the rest of the EU, human oversight remains the norm in Malta when AI is used in work- place decision-making. Some 59% of businesses using AI, rely on it to make suggestions while leav- ing the final decision to a person, while 16% use AI to make deci- sions that can subsequently be revised by humans. A further 14% keep decision-making entirely in human hands. Fully automated decisions without human inter- vention account for just 2% of businesses. Customer service is main application Maltese businesses are more likely to deploy AI in customer relations than in employee moni- toring. Some 65% of Maltese firms using or planning to use AI, deploy it in customer service or client rela- tions, the highest share in the EU and well above the European aver- age of 47%. In this aspect Malta is closely followed by Poland (64%), Greece (58%) and Romania (58%). By contrast, 33% of Maltese busi- nesses use automated systems to monitor employee productivity or performance, below the EU aver- age of 36% and well below the fig- ures recorded in Lithuania (59%), Poland (55%), France (50%) and Italy (47%). As regards the deployment of AI in workplace health, safety, and risk prevention, Malta trails sig- nificantly behind the European average. While 15% of AI-engag- ing enterprises across the EU27 deploy or plan to use automat- ed tools for occupational health, safety, or risk management, only 8% of Maltese firms do so. In con- trast 33% of Irish firms use AI for health, safety and risk prevention. Labour shortages drive AI adoption Malta also stands out in the im- portance businesses attach to AI as a response to difficulties in find- ing workers. While 57% of Maltese enterprises consider labour short- ages an important motivation for adopting workplace AI, the figure across the EU stands at 44%. This makes Malta 13 percentage points above the European average. Across the union, businesses are more likely to prioritise improving product quality (75%), and reduc- ing costs (73%), than addressing staffing gaps. In 25 of the 27 mem- ber states, labour shortages are a less prominent motivation for adopting AI. Employers optimistic Maltese employers are also among the most optimistic in Eu- rope about the impact of AI on working conditions. Some 85% expect the technology to improve job quality, including aspects such as workload, safety and privacy. This is the highest share in the EU. The survey also found that 71% of Maltese business leaders re- port positive employee attitudes towards workplace AI, tying with Greece for the highest share across the bloc. Employers in Malta also ex- press relatively high levels of trust in AI-assisted decisions affecting staff. While 44% of businesses across the EU express trust in AI for staff-related deci- sions, the figure rises to 50% in Malta. Despite this optimism, em- ployee surveillance remains a concern across Europe. Some 33% of EU businesses cite fears of increased surveillance as an obstacle to AI adoption, ranging from 50% to 29% in Malta. The comparatively lower use of performance-monitoring sys- tems in Malta, alongside em- ployers' positive expectations, points to a more favourable reported business climate for workplace AI. However, these figures reflect employers' per- ceptions and reported practices rather than independently ver- ified improvements in working conditions. In total, 260 Maltese compa- nies participated in the survey. Target respondents were busi- ness owners, CEOs, managing directors, CTOs, or HR man- agers with decision-making au- thority or direct knowledge of operating systems in privately owned SMEs and mid-caps. JAMES DEBONO jdebono@mediatoday.com.mt As in the rest of the EU, human oversight remains the norm in Malta when AI is used in workplace decision-making