Italy Accelerates AI and Digital Transformation for Post-Pandemic Recovery
In the wake of the global pandemic, Italy has emerged as a strategic leader in Europe’s digital and artificial intelligence (AI) transformation, positioning advanced computing and data-driven innovation at the heart of its national recovery and long-term competitiveness. With a comprehensive national strategy, massive investments in supercomputing infrastructure, and targeted applications in health, industry, and public services, the country is building a robust ecosystem to harness the power of AI for economic revitalization and societal resilience.
At the core of Italy’s technological renaissance is the Italian Artificial Intelligence Strategy, officially released in July 2020 by the Ministry of Economic Development. This strategic framework identifies AI as a foundational pillar for the nation’s post-COVID-19 economic revival, aligning with broader European Union recovery initiatives. The strategy outlines six priority sectors where AI is expected to deliver transformative impact: manufacturing and the Internet of Things (IoT), healthcare and finance, transportation and agriculture, aerospace and defense, public administration, and culture and digital humanities.
The emphasis on manufacturing reflects Italy’s industrial heritage and its ambition to modernize traditional sectors through intelligent automation. Italian industry has long been renowned for high-precision engineering and craftsmanship in automotive, machinery, and design. By integrating AI into manufacturing processes, companies can enhance predictive maintenance, optimize supply chains, reduce energy consumption, and improve product quality. The fusion of AI with robotics is enabling a new generation of adaptive, self-learning machines capable of performing complex tasks with minimal human intervention, thereby increasing productivity and operational efficiency across small and medium-sized enterprises (SMEs), which form the backbone of the Italian economy.
In healthcare, AI is being leveraged not only to improve diagnostics and personalized treatment but also to respond to urgent public health crises. One of the most notable achievements in this domain occurred during the early stages of the COVID-19 pandemic, when the Italian pharmaceutical company Dompé, in collaboration with the CINECA National Supercomputing Center, deployed an AI-powered drug discovery platform called EXSCALATE. This platform, running on one of Europe’s most powerful supercomputers, screened over 400,000 molecular compounds against the SARS-CoV-2 virus in a matter of days. The system identified Raloxifene, a drug originally used to treat osteoporosis, as a promising candidate for repurposing against the virus. Subsequent in vitro testing confirmed its antiviral activity, and clinical trials were initiated at the Lazzaro Spallanzani National Institute for Infectious Diseases in Rome. This breakthrough exemplifies how high-performance computing and AI can dramatically accelerate the drug discovery pipeline, reducing development timelines from years to months.
The success of EXSCALATE underscores the critical role of supercomputing in Italy’s AI ambitions. To solidify its leadership in computational science, Italy launched the construction of LEONARDO, a state-of-the-art supercomputer hosted at the CINECA facility in Bologna. Funded jointly by the European Union and national institutions, the project represents a €240 million investment, with half contributed by the EU and the remainder by the Italian Ministry of University and Research, the National Institute for Nuclear Physics, the International School for Advanced Studies, and regional authorities. Additional support came from Austria, Slovakia, Slovenia, and Hungary, reflecting the collaborative nature of European research infrastructure.
LEONARDO is designed to deliver a peak performance exceeding 248 petaflops—equivalent to 248 quadrillion calculations per second—making it the fastest supercomputer in Europe and among the top five globally upon completion in 2021. Equipped with nearly 14,000 NVIDIA Ampere architecture GPUs, 3 petabytes of memory, and 150 petabytes of storage capacity, the system is optimized for high-performance data analytics (HPDA), machine learning, and complex simulations. Its applications span climate modeling, astrophysics, natural disaster prediction, materials science, and precision agriculture. By providing 20% of its computing capacity to industry and SMEs, LEONARDO aims to bridge the gap between academic research and commercial innovation, fostering a culture of open access and technological diffusion.
The deployment of LEONARDO is not an isolated project but part of a broader national roadmap for digital infrastructure. It complements Italy’s participation in the EuroHPC (European High-Performance Computing) Joint Undertaking, a pan-European initiative to develop exascale computing capabilities. These efforts are intended to ensure that European nations retain sovereignty over their data and computational resources, reducing dependence on foreign technology providers and enhancing cybersecurity resilience.
Parallel to national supercomputing initiatives, private industry is also making bold moves in AI-driven research. Leonardo S.p.A., Italy’s largest aerospace and defense contractor, announced in July 2020 a partnership with Atos, a global leader in digital transformation, to build a dedicated supercomputer at its research center in Genoa. This system, powered by NVIDIA A100 Tensor Core GPUs, will deliver over 5 petaflops of computing power and serve as the “central nervous system” of the company’s advanced R&D laboratory. The investment signals a strategic shift toward integrating AI into core engineering processes, including aircraft control systems, autonomous navigation, satellite data fusion, and quantum-safe communications.
The Genoa supercomputer will enable Leonardo to simulate complex aerodynamic behaviors, optimize structural designs, and develop intelligent monitoring systems for critical infrastructure. For instance, AI models trained on satellite imagery and sensor data can detect early signs of landslides, monitor urban heat islands, or assess the structural integrity of bridges and dams. In the aerospace domain, machine learning algorithms are being used to refine flight management systems, improving fuel efficiency and flight safety. Moreover, the company is exploring the integration of AI with emerging technologies such as digital twins—virtual replicas of physical systems—that allow real-time monitoring and predictive maintenance of aircraft and defense platforms.
Beyond industry and scientific research, the Italian government is actively promoting the adoption of AI in public administration to enhance service delivery and operational efficiency. The National Recovery and Resilience Plan (NRRP), formulated in September 2020, allocates a significant portion of Italy’s €209 billion share from the EU’s NextGenerationEU recovery fund to digital transformation. As one of the two central pillars of the plan—alongside green transition—the digital agenda aims to modernize public services, expand broadband connectivity, and strengthen the country’s digital infrastructure.
Key initiatives under the NRRP include the digitization of healthcare records, the automation of tax and customs procedures, the development of smart city platforms, and the rollout of 5G networks across urban and rural areas. The plan also emphasizes the creation of Digital Innovation Hubs (DIHs), regional centers designed to support SMEs in adopting AI, cloud computing, and IoT solutions. By lowering the barriers to entry for digital technologies, these hubs aim to stimulate innovation, increase competitiveness, and create high-skilled jobs in regions beyond traditional tech hubs.
Another critical component of Italy’s AI strategy is the development of a national talent pipeline. Recognizing that human capital is as important as hardware, the government has set a goal to increase the number of AI researchers and engineers by 20% within five years. This involves expanding AI curricula in universities, offering scholarships and research grants, and creating incentives for private-sector collaboration. Additionally, efforts are underway to reverse brain drain by improving working conditions for scientists and attracting international experts to Italian institutions.
To ensure ethical and responsible use of AI, the strategy emphasizes transparency, accountability, and respect for fundamental rights. Public trust in AI systems is seen as essential for widespread adoption, particularly in sensitive domains such as law enforcement, healthcare, and education. Therefore, the government is promoting the development of explainable AI models, data protection frameworks, and regulatory guidelines that align with EU standards, including the proposed Artificial Intelligence Act.
Cultural heritage, one of Italy’s most valuable assets, is also benefiting from AI integration. With thousands of historical sites, museums, and archives, the country faces immense challenges in preserving and making accessible its vast cultural patrimony. AI-powered tools are now being used to digitize ancient manuscripts, restore damaged artworks, and enhance visitor experiences through augmented reality and intelligent chatbots. For example, machine learning algorithms can analyze high-resolution scans of frescoes to detect early signs of deterioration, enabling conservators to intervene before irreversible damage occurs. Natural language processing systems are helping to translate and index multilingual archival collections, making them searchable and accessible to scholars worldwide.
The convergence of AI with creativity is giving rise to new forms of digital humanities, where computational methods are used to study literature, history, and art in novel ways. Projects such as automated authorship attribution, sentiment analysis of historical texts, and generative models for reconstructing lost musical compositions are expanding the boundaries of scholarly inquiry. These innovations not only preserve cultural memory but also make it more engaging and interactive for younger generations.
Despite these advancements, challenges remain. The uneven distribution of digital skills across regions, the legacy of bureaucratic inertia in public institutions, and the relatively low level of private investment in R&D compared to other G7 countries pose obstacles to Italy’s digital ambitions. Furthermore, while the country has strong capabilities in niche engineering and design, it lacks homegrown tech giants capable of competing with American or Asian digital platforms. Bridging this gap requires sustained policy commitment, public-private partnerships, and a long-term vision that extends beyond electoral cycles.
Nevertheless, Italy’s approach offers valuable lessons for other nations navigating the complexities of digital transformation. First, it demonstrates the importance of integrating AI into a holistic national strategy that links technological advancement with economic development, social inclusion, and environmental sustainability. Second, it highlights the role of large-scale infrastructure—such as supercomputers—as enablers of innovation across multiple sectors. Third, it underscores the need for cross-sector collaboration, bringing together academia, industry, government, and civil society to co-create solutions that address real-world problems.
Perhaps most importantly, Italy’s experience shows that digital transformation is not merely about adopting new technologies but about reimagining how societies function. Whether it is using AI to discover life-saving drugs, optimizing energy grids to combat climate change, or preserving cultural heritage for future generations, the ultimate goal is to improve quality of life and build a more resilient, equitable, and intelligent society.
As global competition in AI intensifies, Italy’s strategic investments and coordinated policy framework position it as a key player in Europe’s digital future. While the road ahead is complex, the foundations have been laid for a knowledge-based economy driven by data, intelligence, and innovation. The success of initiatives like LEONARDO, EXSCALATE, and the National Recovery and Resilience Plan will not only determine Italy’s economic trajectory but also contribute to shaping the ethical and technological contours of the AI era.
Ma Zongwen, Sun Chengyong, Global Science, Technology and Economy Outlook, DOI: 10.3772/j.issn.1009-8623.2021.02.003