top of page

Artificial Intelligence and Business Digitalization in Italy: Key Insights from the 2024 Istat Report

Immagine del redattore: Andrea ViliottiAndrea Viliotti

From an international perspective, the findings of the report “IMPRESE E ICT | ANNO 2024,” published on January 17, 2025, by Istat researchers Alessandra Nurra, Valeria Tomeo, and Federico Caboni, provide an in-depth analysis of the digital transformation of Italian businesses with at least ten employees. The report highlights how Italian companies are increasingly adopting artificial intelligence and digitalization, enhancing their organizational processes through improved cybersecurity measures and network infrastructure upgrades. These advancements aim to drive growth in online sales, productivity, and competitiveness, aligning with broader global technological trends.

The primary goal of the analysis is to deliver quantitative and qualitative insights into artificial intelligence and digitalization within the business sector, while shedding light on the challenges Italian companies encounter during this transformative journey. It emphasizes the critical role of investments in advanced technologies, new skill sets, and innovative organizational approaches to foster a dynamic business environment capable of competing on a global scale. While Italy's progress still lags behind the European Union (EU27) average in some areas, the increasing adoption of AI technologies represents a positive trajectory that executives, entrepreneurs, and technical professionals can capitalize on to accelerate innovation further.


Strategic Insights on AI and Digitalization for Entrepreneurs and Executives

For entrepreneurs, the report uncovers a wealth of opportunities supported by compelling data. The proportion of companies investing in AI-based technologies has risen from 5.0% in 2023 to 8.2% in 2024, though still below the 13.5% average reported for the EU27. Smaller businesses with 10 to 249 employees have seen their online revenue surge to 14.0%, compared to just 4.8% a decade earlier. This trend points to the importance of tapping into digital markets and expanding toward a global audience.


For corporate executives, an essential finding involves the adoption of at least seven cybersecurity measures: 32.2% of companies with ten or more employees have implemented multiple tools to guard against threats (compared to 28.0% in 2022). At the same time, high-speed fixed broadband usage has risen to 88.8% among all businesses, with even higher rates in larger organizations. These improvements emphasize the significance of secure infrastructures and faster connectivity in day-to-day operations. The report also notes that 17.8% of Italian companies invest in employee training for digital skills, a figure that lags behind the 22.3% EU27 average but signals growing awareness of the need for workforce development.


For technical professionals, the study highlights an uptick in backup and encryption practices, especially among enterprises exposed to elevated cybersecurity risks. Connectivity of at least 1 Gbps (gigabits per second) now reaches 18.1% of mid-sized companies and 35.9% of large firms. This improvement fuels telework, cloud-based services, and the deployment of generative AI—ranging from voice recognition to automated text creation—in marketing, sales, and innovation departments. The potential impact on productivity and service quality appears substantial, particularly where AI applications integrate seamlessly with core business processes.

Artificial Intelligence and Business Digitalization in Italy
Artificial Intelligence and Business Digitalization in Italy

AI Growth and Business Digitalization in Italy: Key Data

As “IMPRESE E ICT | ANNO 2024” illustrates, the role of AI in Italian enterprises continues to expand. Italian companies are showing a growing interest in artificial intelligence and business digitalization in Italy, particularly in machine learning algorithms, voice and image recognition, and process automation. Many are taking steps to optimize how they manage and analyze data throughout each product’s lifecycle.


The report measures AI adoption by examining, among other factors, how many businesses rely on at least two AI-driven technologies such as machine learning or deep learning systems, or applications that handle text, images, and other data. In 2024, the combined implementation of two or more AI solutions reached 5.2%, compared to 2.8% just a year earlier. This steady shift is apparent in use cases like automated text generation, faster extraction of relevant information from document archives, and autonomous machines directed by AI. Certain sectors—particularly IT, telecommunications, and film production—stand out for adoption rates that sometimes exceed 30%.


Rising AI usage correlates with productivity gains for many respondents and a growing emphasis on cost optimization and product personalization. AI systems can deliver value across diverse areas, from commercial outreach to after-sales assistance. For instance, speech-to-text tools reduce manual data entry and streamline customer interactions. In a traditional call center, operators must record details themselves, whereas voice-to-text systems can partially automate the flow of information, increasing accuracy and efficiency.

Generative AI experimentation is also on the rise, particularly for tasks like copywriting, marketing campaigns, and automated reporting. While larger enterprises tend to combine multiple AI capabilities, small and medium-sized businesses often focus on a narrow set of functions—frequently in administration, marketing, or sales. The effectiveness of AI hinges on both the technical proficiency of the staff and the quality of the data fed into these systems. Empirical evidence suggests that poorly curated data can lead to errors and imprecise analysis.


Given these challenges, a growing number of companies plan to step up their AI investments over the next two years, pairing advanced software with organizational strategies that delegate repetitive tasks to machines. Skilled personnel—experienced in data science and AI—remain vital for finetuning algorithms and structuring machine learning processes. Overall, these developments hint at a transformative phase where companies become more flexible and more adept at using AI as a cornerstone of competitiveness.


Cybersecurity and AI in Italian Business Digitalization

Organizations operating in a digital marketplace face heightened risks of intrusions, data theft, and system damage. According to Istat, 15.8% of companies with at least ten employees experienced at least one serious cybersecurity incident in the past year, rising to 29.9% among larger enterprises. Sectors such as film production and travel agencies report even higher susceptibility, with impacts ranging between 24% and 33%.


A portion of the growth in cybersecurity initiatives stems from stronger preventive strategies, including multi-factor authentication and continuous monitoring of suspicious activities. These measures often come with a risk assessment process, encompassing tools like log file storage and periodic penetration testing to uncover system vulnerabilities. Yet the report notes a decline in the share of companies that maintain formal security documentation, dropping from 48.3% in 2022 to 35.9% in 2024. This suggests a shift toward more flexible, action-oriented methods rather than the mere creation of internal policies.

Distinctions between basic and advanced security measures prove critical. Backups and software updates are considered essential, while more sophisticated solutions rely on AI and advanced algorithms for real-time anomaly detection on servers or endpoints. Large corporations tend to deploy next-generation firewalls and AI-based systems to spot unusual network behavior, whereas smaller businesses often stick to simpler tools. Training employees on IT risks is another key factor: 17.8% of companies with at least ten employees provide dedicated cybersecurity courses, compared to 22.3% in the EU27.


A predictive threat analysis platform adopted by a manufacturing firm illustrates how proactive responses can minimize the damage. Instead of reacting to attacks after they occur, the company runs automatic checks on incoming data and rapidly flags suspicious events. High-speed network infrastructure—such as ultra-broadband connectivity—further enhances incident response, allowing swift management of large-scale operations, like project transfers or design file sharing.


Nonetheless, the shortage of ICT specialists remains a major hurdle. The expense of safeguarding strategic data compels managers to balance budgets between fortifying defenses and funding innovation. Some organizations outsource IT security functions to specialized consultants, while others train in-house teams to cultivate a deeper security culture. The most secure businesses tend to integrate advanced technological safeguards with robust governance practices, treating cybersecurity not merely as a protective layer but as a strategic asset.


High-Speed Broadband and Digitalization: Driving Productivity in Italy

A reliable and high-speed internet connection is crucial to succeeding in the digital arena. According to the Istat report, the percentage of companies with fixed broadband speeds of at least 30 Mbps (megabits per second) has grown from 82.8% in 2022 to 88.8% in 2024. Among larger companies, 35.9% have access to 1 Gbps connectivity—an indispensable asset when numerous users require simultaneous bandwidth for tasks like teleconferencing, remote support, or extensive data transfers.


This enhanced connectivity offers significant advantages. Firms can adopt remote-work strategies, reducing overhead costs while broadening their pool of potential collaborators. Technical experts underscore the importance of upgraded network devices, such as advanced routers and cloud-based firewalls, to effectively manage traffic volumes. These investments bolster a company’s ability to implement telework, real-time inventory tracking, and quick data sharing across geographically dispersed offices.


The rise of virtual meetings further demonstrates the importance of robust broadband. About 77% of small and medium-sized businesses grant employees remote access to email, corporate documents, and other required applications, while major enterprises nearly reach 98%. Where 20 Mbps might once have been sufficient, the demand for handling multimedia content, 3D rendering, and cloud-based collaboration has driven many businesses to subscribe to faster plans.


Speedier connections also bolster operational security by enabling frequent checks for malware or viruses. In addition, companies are increasingly integrating IoT (Internet of Things) devices with cloud-based analytics, enabling large-scale data collection and processing. By embracing these technological upgrades, many businesses are creating unified digital architectures—often blending e-commerce portals, CRM (Customer Relationship Management) systems, and ERP (Enterprise Resource Planning) platforms. Over the medium term, these transformations can cut costs and boost competitiveness by ensuring more agile responses to market fluctuations.


E-commerce and Digital Markets: Driving Italy’s Business Evolution

Among firms with ten or more employees, e-commerce represents a crucial driver of modernization. Approximately 20.4% of these companies’ report having made online sales in the previous year, generating on average 16.9% of their total revenue through web channels. The growing popularity of digital marketplaces highlights how consumer preferences and corporate strategies are evolving in tandem.


Another notable aspect is the focus on cross-border digital trade. Over half of the firms that sell online (51.2%) also reach international markets, with transport manufacturing reaching 92.4% and the hospitality industry at 96.1%. These sectors rely heavily on online platforms to capture global audiences. The fashion and textile industries, for instance, frequently leverage virtual storefronts and specialized marketplaces to expand brand visibility abroad. Small and medium-sized enterprises have been steadily increasing cross-border sales, demonstrating growing trust in digital solutions that manage payments, logistics, and customer service more efficiently.


E-commerce adoption does more than grow sales; it reshapes inventory management, customer support, and shipping agreements. As a result, businesses need employees trained in both technology and logistics. Some executives see this transformation as a chance to sharpen their competitive edge, while others worry about global rivals with deep resources that can offer lower prices and faster delivery.


The report also documents a rise in transactions via EDI (Electronic Data Interchange) systems, commonly used for intercompany (B2B) exchanges of information. Automating data transfers in this way cuts down on errors and processing times. Meanwhile, less digitally experienced firms turn to established marketplaces offering comprehensive solutions for payments and shipping. Over the long run, integrating proprietary e-commerce platforms with EDI systems could strengthen Italy’s industrial clusters, especially in the northern regions, by improving commercial relationships among local businesses. However, to fully capitalize on these opportunities, continuous updates to technology and thorough employee training are essential, as out-of-date systems can reduce efficiency and harm overall competitiveness.


Toward Advanced Digitalization: Training, Public Incentives, and New Organizational Models

The Istat study emphasizes how state-level financing programs and workforce training can drive business digitalization. More than half of the surveyed companies view government incentives as key to acquiring new hardware, software, and specialized ICT (Information and Communication Technology) personnel. Larger corporations often seek additional support through multi-regional partnerships and collaborations with research institutes, hoping to speed up their transformation strategies and overcome potential talent shortages.

Employee training emerges as a decisive factor. Some companies focus on basic computer literacy, while others offer advanced instruction in machine learning, cloud architectures, or IoT technologies. In the manufacturing sector, for instance, specific workshops might highlight how sensor arrays on production lines can optimize energy use, or how data analytics platforms can predict mechanical failures before they cause prolonged downtime. These efforts not only improve operational flows but also raise awareness of privacy and data protection responsibilities.


A telling example is the growing use of the Digital Intensity Index (DII), which rates the extent of digital technology adoption on a scale from 0 to 12. Firms surpassing certain DII thresholds may qualify for funding initiatives that require measures such as adopting at least three security protocols or conducting mandatory IT training. In 2024, 70.2% of small and medium-sized enterprises achieved a basic digital standard (four out of 12 digital activities), while 97.8% of large companies met and 83.1% exceeded higher levels. Although size can significantly shape digital capacity, there are shining examples of smaller firms that narrow this gap through targeted investments.


From an organizational standpoint, digital platforms push business owners to restructure workflows and create multidisciplinary teams able to coordinate with IT specialists and external agencies. Building a cohesive digital strategy fosters real-time data sharing and more responsive supply chains. Particularly innovative companies, often in collaboration with universities, explore advanced machine learning algorithms to optimize inventory or forecast sales. This forward-looking environment encourages executives to plan their digital investments several years ahead, examining both immediate expenses and the broader impact on daily operations.


Such awareness is also fueling growth in specialized consulting services designed to integrate cloud-based solutions, e-commerce, and cybersecurity into modular, scalable suites. Over the medium term, industry observers anticipate greater maturity across Italy’s business ecosystem, with ongoing training programs and targeted subsidies acting as critical drivers for achieving robust digitalization and more adaptable organizational structures.


Conclusions

According to “IMPRESE E ICT | ANNO 2024,” Italy’s steady progress in AI, high-speed broadband, and e-commerce is reshaping domestic markets. Company size and industry specialization play a central role in determining how quickly innovations take hold, with some enterprises exploring big data analytics and cloud services, while others turn to industrial automation that leverages advanced sensor technology. In the coming years, initiatives to close the skill gap in AI and digital management—bolstered by government incentives and research collaborations—could strengthen Italy’s competitive standing.

Comparisons with more digitally advanced countries suggest room for growth, provided Italian businesses adopt agile organizational models and invest in high-quality data management. Firms that embrace change tend to integrate AI with fast broadband networks and online sales. Companies in less tech-intensive sectors, however, remain slower to adjust, which may widen existing divides but also prompt strategic realignments that focus on sustainability and return on investment.


The report makes it clear that the benefits of digital transformation go beyond technical enhancements. They also involve a sweeping reassessment of workforce capabilities and the intelligent pairing of qualified personnel with new technology. For many senior managers, the key challenge is fusing human capital with ICT tools in a way that respects data quality and strong cybersecurity practices. Ultimately, the evidence points to a future where AI, high-speed connectivity, and e-commerce are interwoven into a realistic growth path for companies that strike the right balance of pragmatism, analytical rigor, and collaborative spirit.


 

Comments

Rated 0 out of 5 stars.
No ratings yet

Add a rating
bottom of page