Italy's AI market hits €1.8 billion, but only 8% of firms use the technology

The Italian artificial‑intelligence sector grew 50% in a year, reaching a market size of €1.8 billion in 2025. Generative AI now accounts for 46% of the market and AI‑related skills appear in 76% of qualified job listings, with demand for such expertise up 93% over the previous twelve months.

Despite the growth, adoption remains limited: only 8.2% of Italian enterprises actively use AI solutions, far below the EU average of 13.5%. Large companies are ahead – 71% have AI projects and 84% use generative tools – while small and medium‑sized enterprises lag sharply, risking the competitiveness of Italy’s broader industrial system.

Industry leaders suggest Italy should focus on vertical AI models built on unique data from its traditional industrial districts (fashion, precision engineering, agro‑food, pharmaceuticals, shipbuilding, advanced manufacturing) rather than trying to match the United States or China on generic platforms. Continued investment in digital skills, research, sovereign cloud infrastructure and cybersecurity is deemed essential for turning AI potential into economic growth.

At the same time, the Italian Labour Union (UIL) highlighted AI as a key future challenge, calling for tax cuts, higher wages and pension support, and urging the government to discuss new industrial policies that include AI alongside labour and welfare reforms.