Assolombarda General Meeting: Biffi says, ‘Milan is the driving force behind the new industrial revolution’

And whilst, in general, talent acquisition, energy costs, company size, and access to international markets and capital are the structural challenges that need to be addressed, the lever that can drive extraordinary growth today is artificial intelligence.

It is now being used to an ever-greater extent (by 49 per cent of Assolombarda member companies, up from 20 per cent in 2024) to boost efficiency and cut costs, though its application remains limited when it comes to broader strategies, such as the development of new products and services. ‘The real challenge for Europe lies in integrating it into the real economy: for Italia, this represents an unmissable opportunity.’

This is an objective that Assolombarda is seeking to achieve by developing the ForgIA project, which already involves 20 companies and 60 use cases – a way of sharing data securely and developing new applications through collaboration.

The real frontier, however – the one that offers the Italian economy the greatest opportunities – is its integration into manufacturing: Physical AI, the convergence of the digital and physical worlds.

‘When technology needs to translate into motion, precision and production, algorithms aren’t enough: we need industry – we’re the ones who are needed.’

The aim with these projects is to make the Assolombarda quadrilateral (Milan, Monza-Brianza, Pavia and Lodi) an international hub on a par with Silicon Valley, ‘to build the Artificial Intelligence Factory here’ and make Italia one of the European centres where Physical AI is designed, industrialised and, above all, manufactured.

This approach must also be supported by industrial policy measures, such as hyper-depreciation. The proposal has been welcomed for its three-year timeframe, but there are calls to include cloud-based software services, ‘so as not to penalise those who use subscription-based tools’. This is an approach that should be pursued in every respect, because, more generally, the Budget Law calls for ‘doing everything possible to stimulate innovation’.

The link between productivity and growth seems clear when looking at the figures presented: one in three companies with active AI projects plans to increase its workforce over the next 12 months.

However, technology must be complemented by skills, and in this regard Biffi welcomes the proposal for preferential tax treatment on pay rises for those under 35, just as he welcomes the Government’s decision to launch a housing scheme.

Assolombarda proposes tackling the housing crisis through a bespoke scheme designed to encourage companies to support their employees’ housing needs. The scheme could benefit 280,000 workers across Italia, with an estimated benefit of over two billion, whilst the cost to the State would amount to a quarter of this sum.

The issue of young people and attracting talent must also be addressed from another perspective, namely by making the region more competitive. This approach is being pursued by responding to the Lombardy Region’s call for proposals to establish Innovation and Development Zones in Milan dedicated to AI and the life sciences, whilst, in parallel, Assolombarda is supporting AmCham Italy’s proposal to put forward Milan as the host city for the new United Nations agency dedicated to the governance of Artificial Intelligence.

Another key aspect for future growth is internationalisation, a theme at the heart of Assolombarda’s activities, as demonstrated by its recent missions to Canada, the United States, Mercosur and the United Arab Emirates. “The agreement between the EU and Mercosur,” he explains, “conveys a broader message: in a world where protectionism and trade barriers are making a comeback, we must respond by opening up new opportunities for businesses, diversifying our relationships and building stronger alliances.”

“During these missions,” explains Biffi, addressing Prime Minister Giorgia Meloni, “I have seen for myself that your name has opened many doors for us – an important recognition for the country and a tangible help for our businesses. That is why I would like to thank you personally.”

Another key issue for businesses is that of capital. And a significant part of the conditions for investment – he explains – is determined in Europe, which, on the eve of the debate on the 2034 budget, ‘must find the resources to support both competitiveness and cohesion, whilst funding the investments needed by its industry. We cannot ask companies to invest more and then cut the resources allocated to their competitiveness. And new EU resources must not result in new burdens on businesses’.

‘Rising Industry’, concludes Biffi, means that Italia must look to the future, securing new leadership positions for our businesses and for the benefit of future generations. “Our aim is to ensure that Italia – with the regions covered by Assolombarda at the forefront – helps to lead this transformation. Our ‘quadrilateral’ can play a decisive role in the new industrial revolution.”