Funding for innovation and AI as drivers of development

The benefits can be particularly significant in manufacturing. Artificial intelligence can help prevent breakdowns, reduce waste, optimise the use of energy and materials, speed up the design process and improve product quality. It can transform the data accumulated during production processes into knowledge, innovation and efficiency.

But the impact will extend far beyond these aspects. In the field of medicine, for example, AI can make diagnoses faster and more accurate, improve treatment pathways and speed up the search for new drugs and therapies; this is an area where technological progress can directly translate into improved well-being for people.

More generally, it will have an impact on the organisation of work, on training, and on the very way in which we make decisions.

As with any major technological transformation, some activities will undergo profound change, whilst others will emerge. The difference compared with the past is the speed of change. This is why the transition must be prepared for and managed: we need to invest in skills, support the workers most at risk, and ensure that the benefits are not concentrated in just a few companies, sectors or regions.

We must act decisively to ensure that technological progress translates into human progress. This is the essence of the calls made by Pope Leo and President Mattarella: artificial intelligence must remain at the service of the individual, the dignity of work, responsibility and freedom. Only in this way can change be seen as an opportunity, rather than a threat against which we must defend ourselves.

This transformation will require businesses to make substantial investments, which are different in nature from traditional ones. Many of these will be intangible: research, software, data, skills and organisation. These investments are difficult to assess from the outside; they are often risky, with uncertain returns that may take a long time to materialise.

This is where the financial system comes into play. Because without adequate funding, innovation remains just an idea; with patient finance, venture capital and deeper markets, it can lead to growth, jobs and competitiveness.

Italia and Europe are not starting from scratch. They have savings, research, businesses and expertise. But all too often, these resources are not pooled on the scale required to support the most ambitious projects. We must strengthen our ability to channel capital towards businesses that innovate, grow and turn research into practical applications.

This is the challenge we will be discussing today: ensuring that artificial intelligence is not confined to the cutting edge of technology, but becomes a widespread driver of development; and creating the financial conditions to enable this transformation to take place in Italia and across Europe.

We are publishing the opening address by Fabio Panetta, Governor of the Bank of Italy, at the conference organised by the Bank of Italy and the European Investment Bank