Table of Contents
- Generative AI: Driving the New AI Wave
- Most Common AI Applications in Italy
- Adoption Trends: A Two-Speed Italy
- GenAI and Productivity: Early Results
- Sector Focus: Who’s Investing the Most?
- Ethics and Regulation: A Long Road Ahead
- Conclusion
The Italian AI market continues its upward trajectory, reaching a value of €1.2 billion in 2024—a 58% increase over the previous year. This significant growth reflects strong corporate interest in artificial intelligence’s potential.
According to the Artificial Intelligence Observatory of the Politecnico di Milano, 81% of large Italian companies have launched or actively evaluated AI projects.
However, Italy ranks last among the countries analyzed regarding the percentage of companies with at least one active AI project (59%), highlighting that many organizations are still in the exploratory or pilot phase.
Generative AI: Driving the New AI Wave
A key driver of this evolution is Generative AI (GenAI), which in 2024 accounted for 43% of the market, either as standalone solutions or as part of hybrid projects. The remaining 57% is still dominated by traditional AI, encompassing well-established applications like machine learning, recommendation engines, and voice or image recognition.
Hybrid projects—blending GenAI with traditional AI—are particularly common in Text Analysis and Recommendation Systems, where they make up 90% and 50% of use cases, respectively.
Most Common AI Applications in Italy
- Data Exploration, Prediction & Optimization (34%)
Advanced systems for demand forecasting, logistics optimization, and real-time fraud detection. - Text Analysis, Classification & Conversational Systems (32%)
Experiencing rapid growth (+86% YoY), fueled by GenAI. These systems enhance the handling of unstructured data and improve human-machine interactions through chatbots and virtual assistants. - Recommendation Systems (17%)
Enhanced by GenAI to better understand semantic context in user interactions, these systems play a key role in sectors like e-commerce and media by delivering personalized experiences.
Adoption Trends: A Two-Speed Italy
While 25% of large Italian companies report having mature and widespread AI initiatives—outpacing countries like Germany (20%), the UK (18%), and France (16%)—adoption among SMEs remains limited. Only 7% of small businesses and 15% of medium-sized ones have launched AI initiatives.
Barriers are often economic or related to internal skill shortages.
Despite these challenges, some SME sectors, such as manufacturing, are beginning to see tangible benefits from AI—for example, in predictive maintenance and process optimization.
GenAI and Productivity: Early Results
More than half (53%) of large Italian enterprises have adopted off-the-shelf GenAI tools—such as ChatGPT or Microsoft Copilot—putting Italy ahead of France, Germany, and the UK in this area.
Among these companies, 39% have reported increased productivity. Additionally, over 40% have already implemented internal guidelines for the responsible use of GenAI, while 17% have opted to ban the use of unauthorized tools altogether.
Sector Focus: Who’s Investing the Most?
The sectors with the highest average AI spend include:
- Telecommunications & Media
- Insurance
- Banking & Financial Services
- Energy, Resources & Utilities
In these industries, AI is leveraged to automate processes, enhance customer service, prevent fraud, and optimize complex operations.
Ethics and Regulation: A Long Road Ahead
Only 28% of Italian companies have taken concrete steps to address AI ethics, and 52% say they lack a clear understanding of the regulatory framework introduced by the EU AI Act.
This points to the urgent need to align technological advancement with regulatory and cultural awareness.
Conclusion
Artificial Intelligence in Italy is showing promising signs of growth, driven largely by Generative AI and a subset of companies eager to innovate.
Nonetheless, significant challenges remain—particularly around regulation, culture, and infrastructure. For AI to deliver inclusive, sustainable, and fully integrated transformation, a holistic approach is essential.
Neodata AI Team
As Neodata, we provide data, insight, articles, and news related to AI and Big Data.
