Assessing AI and automation readiness for productivity growth in Maltese SMEs

Abstract

This study examines the maturity and appetite for adopting artificial intelligence and automation technologies among Maltese small and medium-sized enterprises, with particular attention to their potential to improve productivity and operational efficiency. The research addresses a gap in Malta-specific academic literature by investigating current digital practices, readiness for adoption, and the technological, organisational, and environmental conditions influencing implementation. A qualitatively driven mixed-methods approach was adopted. Primary data were collected through semi-structured interviews with Maltese SME owners, managers, and senior decision makers, together with a structured survey aligned to the EU Digital Maturity Assessment (EU DMA) and the Technology, Organisation, Environment (TOE) framework. The qualitative data were analysed using thematic analysis, while the quantitative findings were used to strengthen and support the overall interpretation of the results. The findings show that Maltese SMEs are not digitally inactive, but are uneven in their maturity, readiness, and depth of AI adoption. Although many SMEs already use some form of digital tools and basic AI applications, readiness for deeper AI integration remains uneven. The results indicate that openness to AI is generally stronger than actual implementation. Key barriers include limited time, resource constraints, skills gaps, fragmented data environments, and uneven access to relevant guidance and support. At the same time, SMEs can identify clear areas where AI and automation could improve productivity, particularly in administrative work, reporting, customer communication, finance-related tasks, workflow coordination, and marketing.