Interventions

Digitalisation in Italy: towards an innovative and sustainable future

13 November 2024

3' min read

Key points

The current state of digitisation in Italy
The Importance of Artificial Intelligence
An inclusive digital ecosystem
A sustainable future

3' min read

In recent years, Italy has embarked on a significant journey towards digitisation, a process that is not limited to the implementation of new technologies, but which represents a true cultural and social transformation that is increasingly involving companies, institutions and citizens.

The forecast of the digital market in our country, in fact, reflects an overall growth of around 3.5%, with a value that will exceed 80.5 billion euros (source: Digital Italy Report 2024). The estimate returns an acceleration of development, given that in 2023 the increase was + 2.2%.

Although there has been considerable progress, much remains to be done to position our country as a leader in the European digital ecosystem.

The current state of digitisation in Italy

Italy has made significant progress in the digitisation of public and private services. Projects such as the 'National Recovery and Resilience Plan' (PNRR) have allocated substantial resources to modernise digital infrastructures and promote innovation: more than a quarter of PNRR funding is in fact dedicated to digital transition. However, there are significant delays in the implementation of the planned investments, with more than EUR 150 billion still to be spent by 31 December 2023.

In addition, according to the results of the survey '2024: Cloud, AI, Cybersecurity in the Italian PA' conducted by TIG - The Innovation Group on 461 local public authorities, in 55% of the cases PNRR funding was instrumental in launching digital transformation projects.

Regional and sectoral disparities are still evident, however, and one of the most critical aspects concerns e-skills training. This skills gap not only limits job opportunities, but also hampers the ability of companies to innovate and compete on a global scale. Investing in training is essential to ensure that all citizens can access the opportunities offered by digitisation.

The importance of Artificial Intelligence

In this context, artificial intelligence emerges as a key element for the future of digitalisation in Italy: if in 2023 the turnover generated by AI was around 800 million, in 2026 it will reach 1.95 billion. In addition, 46% of Italian companies say they intend to invest in generative AI "in the next twelve months": most companies (39%) are in a study phase, but there is no shortage (33% of respondents) of use cases that have already been implemented (source: Digital Italy Report 2024).

AI offers powerful tools that can improve process efficiency, optimise resource management and create new solutions for everyday challenges. From healthcare to mobility, from education to industry, AI has the potential to radically transform the way we live and work.

Many sectors, such as manufacturing and services, can benefit from automation and data analysis, improving not only productivity but also the quality of services offered. For example, the use of predictive algorithms in the maintenance sector can drastically reduce downtime, leading to significant cost savings.

An inclusive digital ecosystem

Tackling this transformation requires a collective commitment: businesses, institutions and citizens must work together to build an inclusive and sustainable digital ecosystem. Only in this way will we be able to transform Italy into a hub of innovation, where ideas can flourish and talent can fully express itself.

It is crucial that digital policies promote accessibility and equity, ensuring that no one is left behind. This implies not only investment in infrastructure, but also initiatives to involve local communities, schools and universities in the dissemination of digital literacy.

Furthermore, it is crucial to address ethical and security concerns related to the use of AI. Transparency, data protection and accountability must be at the core of the development of new technologies. We need to build an environment where citizens can trust digital solutions and feel their rights are protected.

A sustainable future

Digitalisation can also play a central role inenvironmental sustainability. Indeed, digital technologies can help optimise the use of resources, reduce waste and promote more responsible business practices. For example, AI can be used to monitor energy consumption and identify areas of inefficiency, thus contributing to a transition towards more sustainable business models.

The path to full digitisation in Italy is still long, but the opportunities are immense. Artificial intelligence, if used in a responsible and inclusive manner, can be a fundamental lever for the progress of our country.

We need to invest in skills, promote public-private collaboration and ensure that the digital transformation takes place in a fair and sustainable way. Only in this way will we be able to meet the next challenges of the future.

Roberto Masiero, President of TIG - The Innovation Group