Digital Transformation in Italy – 2025 Overview
National Strategies and Goals
The “National Innovation Plan 2025”, promoted by the Department for Digital Transformation, aims to foster inclusive and sustainable technological development. Key objectives set for 2026 include:
- Digital Identity: Engage 70% of the population in adopting digital identity systems.
- Digital Skills: Ensure that 70% of citizens acquire adequate digital skills.
- Cloud Adoption: Enable 75% of Public Administrations to transition to cloud-based solutions.
- Online Public Services: Make 80% of essential public services accessible online.
- Ultra-Broadband Connectivity: Guarantee 100% of households access to high-speed internet.
Investments in the Digital Sector
Despite economic uncertainty, Italian companies continue to invest in digital transformation to remain competitive. ICT investments are expected to grow by 1.5% in 2025 — marking the ninth consecutive year of growth. Small and medium-sized enterprises (SMEs) are leading this trend, with projected increases of 3.7% and 4%, respectively.
Infrastructure Development
Upgrading digital infrastructure is crucial to supporting ongoing transformation. Open Fiber, for example, has installed over 120,000 km of infrastructure, significantly contributing to reducing the digital divide in Italy. As of January 31, 2025, 84,935 km of ultra-fast network have been laid in rural areas, representing 94% of the total planned.
Artificial Intelligence and Innovation
Italy is making important strides in the field of Artificial Intelligence (AI). The Italian AI market reached €1.2 billion in 2024, growing by 58% year over year. The newly established Italian Institute for Artificial Intelligence (AI4I) aims to bridge the gap between research and industry, promoting AI adoption in critical sectors.
Challenges and Opportunities
Challenges persist, such as the shortage of skilled labor for fiber installation and delays in excavation permits. Nonetheless, initiatives like the “Italia 1 Giga Plan” and investments from the National Recovery and Resilience Plan (PNRR) offer concrete opportunities to overcome these hurdles and promote widespread digitalization across the country.
Conclusion
2025 is shaping up to be a crucial year for Italy’s digital transformation. A broad set of initiatives is paving the way for modernization and enhancing the country’s global competitiveness.