Understanding the EU AI Act: Why AI Literacy Is No Longer Optional for Business Owners 

As artificial intelligence becomes a core part of business operations, companies in Malta are now legally required to ensure their teams understand how AI works and where its risks lie. Under Article 4 of the EU AI Act, effective from 2 February 2025, all AI providers and deployers must equip staff and collaborators with a sufficient level of AI literacy. 

At NOUV Academy, we support organisations in Malta to meet these new legal obligations through practical AI training programmes and leadership-focused AI literacy courses tailored to your sector, risk level, and workforce knowledge. 

What Is AI Literacy and Why Does Article 4 Matter? 

According to Article 3(56) of the EU AI Act, AI literacy refers to the “skills, knowledge, and understanding” that enable individuals to: 

• Make informed decisions when working with or affected by AI 

• Recognise the risks and opportunities of AI systems 

• Understand how AI may impact themselves or others 

This applies to everyone in the AI value chain, from developers and deployers to contractors, clients, and even customers, depending on the context of use. 

Article 4 of the AI Act builds on this definition and introduces a legal requirement: all providers and deployers of AI systems must take appropriate measures to ensure a sufficient level of AI literacy among their staff and others acting on their behalf. This includes adapting training to their technical knowledge, role, and the AI systems in use. 

Importantly, Article 4 supports the effective application of other core obligations in the AI Act like Transparency (Article 13) and Human Oversight (Article 14). In other words, to ensure people understand how AI works and can safely monitor or intervene when needed, they must first be equipped with the right level of AI literacy. That’s why Article 4 is foundational; it empowers people to engage with AI systems responsibly, confidently, and in full alignment with EU law. 

What Does Compliance Look Like and What Are Your Responsibilities as a Provider or Deployer? 

Under Article 4 of the EU AI Act, providers (organisations that develop or market AI systems) and deployers (organisations that use them) must take appropriate measures to ensure AI literacy within their teams and any other persons acting on their behalf. This includes considering the technical background, training, and experience of staff; the risk level of the AI system; the sector of use; and the individuals impacted by the AI. While the law does not require formal certification, companies should maintain internal records of their training and awareness efforts. 

To stay compliant, organisations must take a proactive and flexible approach: 

• Ensure general AI awareness: What is AI? How is it used in your organisation? What risks and opportunities does it bring? 

• Clarify your role: Are you a provider or deployer, and what does that entail under the law? 

• Assess the risk: What knowledge do employees need based on the type of AI in use? 

• Tailor AI literacy efforts: Adapt training to specific job roles, skill levels, and sectors, integrating legal and ethical considerations like transparency, governance, and data protection. 

* For businesses in Malta, this may involve aligning your internal efforts with local regulatory expectations, such as those from the Malta Digital Innovation Authority (MDIA) or other sector-specific bodies. 

What Happens if You Don’t Comply? 

While the AI Office does not currently enforce rigid rules, national enforcement bodies will begin applying penalties from 3 August 2026. These will depend on: 

• The severity and nature of the violation 

• Whether harm was caused due to lack of training 

• Whether the breach was intentional or negligent 

Fines or restrictions are more likely when there is evidence that staff were not appropriately trained, especially in high-risk sectors (e.g. healthcare, finance, security). 

Is Your Organisation Ready? 

If your company places AI systems on the EU market or uses AI in a way that affects EU citizens, Article 4 applies to you, whether you’re a startup in Malta using ChatGPT-style tools or a multinational deploying automated decision-making. 

How NOUV Academy Can Help 

At NOUV Academy, we help organisations in Malta meet their AI literacy obligations under the EU AI Act through a range of tailored and ready-to-go learning solutions. Whether you need bespoke AI training designed around your sector and team or prefer to explore our catalogue of accredited AI courses covering ethics, governance, and emerging technologies, our programmes are built with flexibility and compliance in mind. 

Learn More: https://nouv.com/academy/  
Get in touch: https://nouv.com/contact-us/?contact-academy=true