What’s going on here?

Italian businesses are picking up the pace with artificial intelligence, as the number of firms using AI technology doubled in just one year, according to fresh ISTAT data.

What does this mean?

AI is moving from buzzword to business tool across Italy, but not all companies are progressing at the same rate. In 2025, 16.4% of Italian firms with at least 10 employees reported using AI, up sharply from 8.2% the year before and only 5% in 2023. Larger companies are leading the way – over half of those with more than 250 employees now rely on AI, compared to just a third in 2024. Smaller businesses are also stepping up, but only 15.7% have adopted AI so far, with most citing a lack of skilled staff, regulatory uncertainty, data privacy worries, and high investment costs as obstacles. Still, sectors like IT, video production, and telecom are forging ahead, putting AI to work on everything from extracting information from texts to creative generative applications.

Why should I care?

For markets: Rapid digitalization favors Italy’s largest companies.

Large Italian firms are ramping up tech investment, setting themselves apart from smaller competitors. With over half now using AI, these companies are set to drive consolidation, boost productivity, and unlock higher profits. For sectors like IT services and telecom, this trend points to robust growth and opportunities for investors who have their eye on digital transformation.

The bigger picture: A widening tech gap could reshape Italy’s economy.

Italy’s smaller businesses face major obstacles to adopting AI, like costly investments and a lack of digital skills. If not addressed, this growing gap could weaken the country’s competitiveness and stifle innovation, especially in areas where small and medium-sized firms dominate. National strategies supporting digital upskilling, clearer AI rules, and targeted funding will be crucial for making sure all businesses can benefit from the AI boom.

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