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Only 8% of Italian Firms Use AI as Digital Skills Lag Behind EU Peers, Says ISTAT

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Italy remains significantly behind its European peers in the adoption of artificial intelligence (AI) and digital skills, according to the annual report released Wednesday by ISTAT, the country’s national statistics bureau.

Only 8% of Italian enterprises were using AI in 2023 — a far lower share than in other major EU economies. By comparison, nearly 20% of German businesses use AI tools, with higher adoption rates also recorded in France and Spain.

ISTAT’s findings point to a broader challenge for Italy: insufficient digital literacy among its population. In 2023, only 45.8% of Italians aged 16 to 74 possessed at least basic digital skills — well below the EU average of 55.5% and far from the bloc’s 2030 target of 80%. The figure drops even further to 36.1% in the Mezzogiorno, Italy’s economically disadvantaged southern regions, including Sicily and Sardinia.

Brain Drain and Economic Concerns

ISTAT also highlighted the ongoing “brain drain” affecting Italy’s younger population. In 2023 alone, 21,000 graduates aged 25–34 left the country, marking a 21.2% increase compared to the previous year. Over the past decade, Italy has experienced a net loss of 97,000 qualified young workers, exacerbating demographic and labor challenges.

This trend poses long-term risks to Italy’s innovation capacity and productivity, particularly as the country struggles with low growth and aging demographics.

Economic Forecast

Amid mounting external pressures, including U.S. trade tariffs, the government of Prime Minister Giorgia Meloni last month slashed its 2025 growth forecast from 1.2% to 0.6%. Preliminary data showed the Italian economy grew by 0.3% in the first quarter of 2025 compared to the previous quarter.

Outlook

Italy’s sluggish digital transformation threatens its competitiveness in a rapidly evolving EU market that is increasingly driven by AI integration, digital skills, and tech innovation. The report underscores an urgent need for targeted policies to:

  • Boost digital education,

  • Incentivize AI adoption among small and medium-sized enterprises,

  • Retain young talent by fostering innovation-friendly environments.

Without such reforms, Italy risks falling further behind in the digital economy of the future.

Poland Hopes for AI Chip Export Restrictions to Be Lifted Under Trump

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Poland is optimistic that the Trump administration will reverse the AI chip export restrictions imposed during the final days of President Joe Biden’s tenure. Dariusz Standerski, Poland’s deputy digital minister, expressed hopes on Wednesday that these restrictions, which limit Poland’s access to U.S.-designed AI chips, may be lifted under the new leadership.

The law, which was implemented by the Biden administration, categorized countries into three tiers. While 18 nations, including Japan, Britain, and France, were largely exempt from the restrictions, Poland and 120 other countries faced strict caps. Countries like Russia, China, and Iran were entirely barred from receiving the technology. Standerski criticized the decision, calling it “irresponsible” and stating that the Biden administration failed to provide a clear explanation for Poland’s placement in the second tier.

However, Standerski noted that Poland’s dialogue with the Trump administration had been “very constructive,” and he believes there is a “big chance” that Poland could be moved to the first tier, which would provide it with unrestricted access to the technology. Ongoing consultations are expected to last until May 15.

In addition, Poland’s Deputy Prime Minister Krzysztof Gawkowski discussed the potential rollback of these restrictions with U.S. Vice President JD Vance at the AI Action Summit in Paris last month. Tech groups, including Microsoft, have also urged the Trump administration to ease these restrictions, advocating that such measures should not be extended to U.S. allies.

Furthermore, the European Commission has voiced support for the idea, stating that the EU should be able to access advanced AI chips from the U.S. without limitations.

Paris AI Summit: France and EU Commit to Easing AI Regulations

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At the Paris AI Summit on Monday, French President Emmanuel Macron announced that Europe will scale back regulations to foster the growth of artificial intelligence, with a focus on making the EU more attractive for tech investments. Macron urged the EU to adopt a simplified, business-friendly approach to AI regulation, citing the successful reconstruction of Notre-Dame as an example of how flexible rules can speed up processes.

Henna Virkkunen, the EU’s digital chief, echoed this sentiment, promising to reduce bureaucratic hurdles and implement regulations that support innovation. Macron emphasized the need for Europe to align with global standards, especially as the U.S. under President Donald Trump has rolled back AI regulations to enhance its tech competitiveness.

At the summit, major tech leaders, including Alphabet CEO Sundar Pichai, voiced support for a more streamlined regulatory approach. Pichai highlighted the importance of fostering ecosystems of AI innovation, particularly in places like France.

The European Commission has already passed the AI Act, the world’s first comprehensive AI regulation, but Virkkunen acknowledged the need to review and simplify existing rules to reduce overlapping regulations. In terms of investment, Macron announced €109 billion ($113 billion) in private sector funding for AI in France, with projects including new data centers and AI hubs like the startup Mistral.

A key outcome of the summit was the launch of Current AI, a collaborative initiative backed by France, Germany, Google, and Salesforce, aimed at making high-quality AI data available and promoting open-source tools. The initiative starts with $400 million in funding, with a goal of reaching $2.5 billion over five years.

However, not all attendees agreed with easing AI regulations. Concerns were raised about weakening existing protections, especially from U.S. influences, and about the potential negative impacts on workers displaced by AI. Labour leaders warned about the risks of job losses and the need for adequate protections.