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Embracing the digital transition: the adoption of cloud computing and AI by Italian firms

Author

Listed:
  • Lorenzo Bencivelli

    (Bank of Italy)

  • Sara Formai

    (Bank of Italy)

  • Elena Mattevi

    (Bank of Italy)

  • Tullia Padellini

    (Bank of Italy)

Abstract

The diffusion of advanced digital technologies is reshaping the organization and performance of firms, yet comprehensive evidence on their adoption remains scarce. This paper draws on data from Banca d'Italia's business surveys to assess the uptake of cloud computing and artificial intelligence (AI) among Italian firms. As of early 2024, over 50 per cent of firms with at least 20 employees had adopted cloud services, showing minimal variation across sectors and suggesting that this technology is becoming standard infrastructure. AI adoption remains more limited – rising from 4 per cent in 2020 to 13 per cent in 2024 – and tends to be experimental or task-specific. Adoption rates are strongly associated with firm size, export activity, group affiliation, and innovation capacity. Managerial quality and prior digital investments also influence AI uptake. Expectations about generative AI point to job transformation rather than displacement. Accordingly, the analysis reveals that digital technology adoption is positively correlated with realized and expected employment growth.

Suggested Citation

  • Lorenzo Bencivelli & Sara Formai & Elena Mattevi & Tullia Padellini, 2025. "Embracing the digital transition: the adoption of cloud computing and AI by Italian firms," Questioni di Economia e Finanza (Occasional Papers) 946, Bank of Italy, Economic Research and International Relations Area.
    • Handle: RePEc:bdi:opques:qef_946_25
    as

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    References listed on IDEAS

    as
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    Full references (including those not matched with items on IDEAS)

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    Keywords

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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • D22 - Microeconomics - - Production and Organizations - - - Firm Behavior: Empirical Analysis
    • L86 - Industrial Organization - - Industry Studies: Services - - - Information and Internet Services; Computer Software
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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