AI can help revive Italy’s sluggish labour productivity, Fabio Panetta says

Italy's central bank governor Fabio Panetta reportedly announced on Friday that artificial intelligence could play a significant role in boosting labor productivity. 

Panetta’s comments came during his speech at the Bank of Italy’s annual assembly.

Under a tepid integration scenario, AI could increase Italian productivity by 0.2 percentage points per year. Meanwhile these figures could rise per year under a mass adoption scenario.

Fabio said Italy needs to strengthen speculative capital and equity industries to support AI innovation. It has been observed that 30% of Italian firms use AI but only 5% use it on an advanced level.

He further clarified that AI adoption in Italy is low by international standards and certain measures are needed to boost it.

At present, the Bank of Italy is in talks with prominent global developers of AI technology and involved in enhancing engagement with commercial banks to expedite its adoption.

In this rapidly evolving world of artificial intelligence, the technology offers a significant boost to weak labor productivity. By streamlining administrative burdens and improving operational efficiency, AI can reverse decades of economic downturn to achieve desired growth.