ARTIFICIAL INTELLIGENCE: EMILIA-ROMAGNA MARKET TO REACH 48.5 MILLION EURO IN 2023

THE LAST LEG OF THE SMALL INDUSTRY AND ANITEC-ASSINFORM ROADSHOW IN PARMA

IA spending in Emilia-Romagna reached 48.5 million euro, with forecasts of growth up to 145 million euro by 2027 and an average annual growth rate of 31.7%. The regional digital market reached a total value of Euro 6.06 billion, growing by 2.6% compared to the previous year.

Parma, 8 October 2024 - Fourteenth and last stop in Parmawith the Unione Parmense degli Industriali and the Regional Committee Piccola Industria Emilia-Romagna, for the Series of meetings 'Artificial Intelligence and SMEs: Experiences from a Present Future'.organised by Piccola Industria Confindustria and Anitec-Assinform, in collaboration with the Digital Innovation Hub network and the media partnership of L'Imprenditore. The roadshow - which to date has seen the participation of over 1100 companies and more than 65 company histories between Verona, Bari, Florence, Caserta, Turin, Brescia, Genoa, Castellanza, Cosenza, Catania, L'Aquila and Ancona - came at the finish line in the city of Emilia. In two years, it visited almost all Italian regions, with the aim of raising awareness and informing small businesses about the opportunities offered by artificial intelligence. The companies themselves recounted their experiences and strategies for the use of AI in the company, presenting concrete cases and discussing them directly with the participants.

Artificial intelligence is today at the centre of political and economic debate, yet it is still scarcely used by Italian companies, particularly smaller ones: according to the Eurostat data from 2023, only 5% of companies with at least 10 employees reported using artificial intelligence systems, compared to an EU average of 8% (FIGURE 1). In particular, the proportion of small Italian companies (10-49 employees) stands at 4.4%, compared to 24% for large companies (over 250 employees) (FIGURE 2).

According to Anitec-Assinformthe association that groups ICT companies in Confindustria, the IA expenditure in Emilia-Romagna reached 48.5 million eurowith growth forecasts up to 145 million by 2027with an average annual growth rate of 31.7% (FIGURE 3). The region is confirmed as one of the leaders in Italy for digital transformation. In 2023, the regional digital market reached a total value of EUR 6.06 billion, recording a growth of 2,6% compared to the previous year. Forecasts for the future are even more promising. In 2024 the digital market in Emilia-Romagna is expected to grow by 4.1%, with an estimated value of EUR 6.3 billion. Projections indicate a steady increase for the following years as well, with a growth of 4.9% to reach EUR 7.3 billion by 2027.

I Digital Enabler - enabling technologies such as the cloud computing, l'Internet of Things (IoT)and theArtificial Intelligence (AI) - are playing a key role in the digital transformation of the region. The cloud computing dominated technology spending in 2023, with a value of EUR 440 million and an expected average annual growth of 15,4% until 2027.

Emilia-Romagna is therefore confirmed as a hub of excellence for digital and technological innovation, with Parma among the protagonists of the digital transformation process of the regional production system: in fact, the city ranks fourth among the provinces of Emilia-Romagna in terms of value of the digital market in 2023, with a share of 11.6% on the regional total. In 2023, the digital market in the Province of Parma reached a total value of approximately EUR 703 millionwith an annual growth of 3,2% compared to the previous year. The manufacturing sector led digital spending in the province, followed by the agrifood sector, where there is a growing adoption of solutions based on automation and IoT technologies. In 2024, forecasts indicate further growth in Parma's digital market of 5,1%bringing the total value to approximately 739 million. Investments are mainly allocated to ICT software and solutions (+5.2%) and ICT services (+7.8%), driven by the digital transition of the agrifood sector and the growing adoption of innovative technologies in local SMEs (source: 'Il Digitale in Emilia-Romagna 2024' report).

Looking at national data, according to the Anitec-Assinform Report 'Il Digitale in Italia 2024', the Italian digital market is continuously expanding, with growth forecast to reach 91.6 billion by 2027. Within this scenario, Digital Enablers are a key driver, with an estimated average annual growth rate between 2023 and 2027 of +11.1% to reach an estimated value of EUR 33.3bn. As far as Italy is concerned, the Artificial Intelligence market in 2023 reached a volume of approximately EUR 674 million (+55% compared to 2022) and is expected to reach EUR 1.992 billion in 2027, with an average annual growth rate of 31.1% (see Anitec-Assinform Report 'Il Digitale in Italia 2024').

If we look at the Eurostat data concerning the reasons limiting the use of AI, (FIGURE 4) companies in our country express fewer concerns than the European average, but the greatest obstacle is the lack of appropriate skills.

'AI represents one of the greatest technological revolutions of our time and has the potential to radically transform the way we do business' stated Giovanni Baronipresident of Piccola Industria Confindustria. "It is necessary to promote a culture of responsible innovation that combines opportunities, ethics and sustainability. This is why it becomes central to urge the government to implement a regulatory framework that favours the adoption of AI in SMEs, while guaranteeing fair competition and the protection of fundamental rights. It is certainly necessary to facilitate partnerships between small businesses, research centres and large technology companies to democratise access to these technologies. And to do this, we also need to invest in training and further education to prepare workers for the new challenges. With the roadshow that we have carried out over the past two years throughout Italy, and which ends today, we have taken the first steps towards the creation of a permanent observatory on AI in small enterprises to monitor developments, share best practices, and promptly address any critical issues. We must not forget that Artificial Intelligence is not just a challenge, but an extraordinary opportunity for our small businesses to innovate and grow. Together, with courage and vision, we can transform this technological revolution into an engine of growth for our companies and the entire country.

The President of Anitec-Assinform Massimo Dal Checco stated: 'Artificial intelligence, together with other advanced digital technologies, represents a central element for the competitiveness of our companies and for the entire national economic system. Emilia-Romagna, with its innovative ecosystem and the presence of highly specialised production districts, has proven to be at the forefront in the adoption of digital technologies, becoming a reference model for other regions. For this reason, it is crucial to promote initiatives that strengthen skills, facilitate access to innovative solutions and consolidate strategic partnerships between companies, research centres and local institutions. In this way, it will be possible to support SMEs'.

"In just two years, companies in Emilia-Romagna investing in artificial intelligence - added the president of the Regional Committee Piccola Industria Confindustria Emilia-Romagna Andrea Pizzardi - have more than tripled, from 4.2% in 2022 to almost 15% expected in 2024. Ours is one of the most innovative and digitised regions in Italy and Europe: this result is the result of joint work by the business world and institutions to characterise the area as Big Data Valley, with highly advanced infrastructures, skills and computing power. However, we still have a long way to go, in particular to meet the growing need for ICT professionalism on the part of businesses and to spread the new technologies in all company sizes and throughout the region'.

"The industrial context in Parma, characterised by the close synergy between SMEs and large manufacturing and service companies - added the president of the Small Industry of the Unione Parmense degli Industriali Lorenzo Zerbini - has long marked the adoption of innovative and enabling technologies by even small or medium-sized companies that want to face the market in a distinctive way. Plant engineering, food, automotive, and pharmaceuticals are in fact high-performance sectors that demand innovation and act as a driving force for the entire economic fabric. We must continue to show the advantages of adopting these technologies even in smaller companies, and in this sense today's meeting will be a stimulus".

Presenting their experiences and strategies for using AI in the company were the companies Billoo, Flash Battery, Kedos with GoInfoteam, Maps Group e PBL.