The Italian artificial intelligence market has reached new heights, with total expenditures hitting €1.2 billion in 2024, marking a remarkable growth of 58% compared to the previous year. This surge can largely be attributed to the burgeoning interest and experimentation with generative AI technologies, which now represent 43% of the overall market value, according to the latest findings presented by the Osservatorio Artificial Intelligence at Politecnico di Milano during the conference titled "Artificial Intelligence, and This Is Just the Beginning."
Among different sectors, telecommunications and media, insurance, and retail stand out as the most active participants, with the public administration sector now accounting for 6% of the market—an impressive growth rate of over 100%. The report indicates positive signs of increased investment and innovation within these industries, driven by advancements and competition fueled by generative AI solutions.
Despite this impressive growth, the adoption of AI among Italian companies appears to lag behind other European counterparts. The report notes concerning statistics: 81% of large enterprises have at least considered implementing AI projects, which is below the European average of 89%. More critically, only 59% of these companies have active AI initiatives compared to 69% across Europe, placing Italy at the bottom of analyzed countries including France, Germany, and Spain. Nonetheless, among companies actively implementing AI, about 25% are engaged with more advanced projects.
Interestingly, 65% of larger firms utilizing artificial intelligence are also exploring generative AI for enhancing internal operations, particularly through conversational systems. This aligns with the global trend of AI deployment for efficiency and improved user experience. Alessandro Piva, the director of the Osservatorio, commented, "2024 highlights continuous growth and interest dedicated to artificial intelligence, facing a changing marketplace. Business leaders must now adopt agile approaches along with long-term strategies to achieve productivity, process efficiency, and innovation goals."
On the compliance and ethical side, challenges remain significant. Only 28% of large companies engaged with AI have implemented concrete measures relating to compliance, particularly with the forthcoming AI Act, indicating considerable confusion surrounding regulatory frameworks—52% of companies reported concerns over fully comprehending these requirements.
Despite these hurdles, Italy stands out as one of the leaders for the use of readily available generative AI tools. A reported 53% of large firms have purchased licenses for generative AI products like ChatGPT and Microsoft Copilot, surpassing adoption rates seen in France, Germany, and the UK. Among those companies, 39% noted enhancements in productivity due to these tools. Still, many are yet to quantitatively assess the impact of AI integration offers.
Regarding workforce concerns, over 40% of large Italian firms have established guidelines regulating the use of AI technologies within their operations, with 17% prohibiting the use of non-approved AI tools to mitigate risks associated with shadow AI. Nicola Gatti, another director at the Osservatorio, commented, "AI has shown the potential to achieve previously unimaginable results, but the field is rapidly evolutional, as evidenced by international tension and breakthroughs."
Examining the broader AI ecosystem, Giovanni Miragliotta, director of the Osservatorio, emphasized Italy's research strengths and expansive market potential for artificial intelligence. Nevertheless, he pointed out persistent difficulties fostering innovative entrepreneurship and integrating AI within small to medium enterprises (SMEs), which lag significantly behind larger companies. Currently, only 58% of SMEs express interest, with merely 7% implementing AI strategies and even fewer adopting generative AI tools.
The public perception of AI is relatively positive, with 99% of Italians familiar with the term and 89% aware of generative AI—an increase of 32 percentage points since last year. Italy has demonstrated the most favorable attitude toward AI when compared to France and the UK, where only 59%, 47%, and 42% expressed positive views, respectively. Nonetheless, concerns about misinformation manipulation through AI tools remain prevalent among the public.
Looking forward to 2024-2026 with the new National Artificial Intelligence Strategy, the Osservatorio continues to monitor the AI ecosystem, analyzing over 30 indicators across research, business, public administration, and education. The country ranks well on scientific production but struggles to retain talent, creating challenges for startups seeking investments.
Education is witnessing significant advancements, with increasing university courses and training programs focusing on AI technology. Despite this, the general public's knowledge of AI appears superficial, highlighting the need for continuous educational efforts.
Overall, the Italian AI market is on the cusp of transformation fueled by rapid advancements, the exploration of generative AI applications, and growing public interest. Yet, significant challenges remain, particularly surrounding compliance and the integration of AI technologies across various sectors and company sizes.