È artificial intelligence boom in Italy. In 2023 the AI market is raised by 52% reaching the value of 760 million euros. The majority of investments are focused on textual analysis, classification, synthesis and conversational agent solutions, while Generative AI projects represent only 5%. Six out of ten large companies have started Artificial Intelligence projects, but only two out of three have explored the applications of Generative AI.
The biggest concern is the world of work. Today, AI primarily plays a supporting rather than replacing role. But, between now and the next ten years, the new capabilities of the machines they could replace the jobs of 3,8 million people.
These are the results of the researchArtificial Intelligence Observatory of the School of Management of Politecnico di Milano.
“The market is growing rapidly – he says John Miragliotta, Director of the Artificial Intelligence Observatory – When evaluating the real impact on work we must take into consideration demographic forecasts which, due to the aging of the population, envisage a gap of 5,6 million jobs equivalent by 2033. From this perspective, the possible automation of 3,8 million equivalent jobs appears almost a necessity to rebalance an enormous problem that is being created, rather than a risk".
AI: Italians know it but fear for the future of work
According to the Observatory's data, almost all Italians (98%) are aware of Artificial Intelligence, with only 29% having a medium-high knowledge. There is considerable interest, but also confusion: while 75% are aware of Chat GPT, (with one in four reporting having interacted with the OpenAi chatbot), only 57% are familiar with the term “Generative Artificial Intelligence”.
Then there is the worry about the future of work. 77% of Italians (+4% compared to 2022) demonstrate concern about Artificial Intelligence, especially due to the possible impacts on the world of work. However, only 17% categorically oppose the adoption of AI in professional activities.
The artificial intelligence market
Il 90% of the market of Artificial Intelligence in Italy is dominated by large companies, while SMEs and Public Administration equally share the remaining 10%. There main share of the Italian AI market (29%) is attributed to solutions for analyzing and extracting information from data, followed by 27% for language interpretation projects.
In detail, 22% is dedicated to algorithms that suggest personalized content, 10% to video and image analysis, 7% to process orchestration systems, and 5% to Generative AI.
The average spending on Artificial Intelligence per company is highest in the Telco-Media and Insurance sector, followed by Energy, Resource & Utility and Banking and Finance.
“In 2023 the Italian Artificial Intelligence market grows significantly by scoring a +52%, reaching the value of 760 million euros, an acceleration compared to the +32% recorded in the previous year. The majority of investments concern text analysis and interpretation solutions for semantic research, classification, synthesis and explanation of documents or traditional conversational agents, while Generative AI projects only account for 5%, although there is however great interest - he highlighted Alexander Piva, Director of the Artificial Intelligence Observatory –. Two out of three organizations have already discussed Generative AI applications internally and among these one in four has started an experiment (17% of the total). However, the advent of Generative AI does not appear to be a way to reduce the gap in the adoption of Artificial Intelligence among large organizations. Those who are behind in the process of adopting AI, in fact, are unable to benefit from the opportunities of Generative AI (in 77% of cases).”
AI: how widespread it is among companies
Il 61% of large companies ha at least one project started of Artificial Intelligence, mainly at an experimental level, while this percentage drops to 18% for small and medium-sized enterprises (+3% on 2022). AI adoption remains broadly stable compared to the previous year, with companies already involved accelerating their projects.
Among late businesses, adoption of Generative AI is still limited. 37% of large companies without projects intend to launch them in the next 12 months, highlighting growing workshop and training initiatives on the topic. About two-thirds of large companies have discussed Generative AI applications, with 25% of them having started a trial.
In contrast, only 7% of SMEs are considering potential applications, and only 2% have actually started a trial.
AI: five adoption profiles
The Observatory has valued the maturity of large organizations in adopting Artificial Intelligence, identifying five distinct profiles.
11% are classified as avant-garde: companies with full technological, organizational and managerial maturity in the adoption of AI solutions. 23% are apprentices, with various projects started but managed informally, often with standard solutions. In the remaining 66%, there are heterogeneous situations: organizations on the move (29%), with enabling elements but few projects, and companies that do not consider the topic relevant and lack an IT infrastructure suitable for managing large quantities of data.
