Generative AI takes centre stage for Italian mid-market companies

Generative AI Takes Centre Stage for Italian Mid-Market Companies

In a rapidly evolving technological landscape, medium-sized businesses in Italy are increasingly prioritising the integration of generative artificial intelligence (Gen AI) into their operations. This trend is highlighted in a recent study conducted by SAP Insights, which examined the business priorities of mid-tier enterprises globally, including over 330 companies within Italy.

Study Findings

The research, entitled “Mid Market and Business Priorities,” surveyed 12,003 companies worldwide, revealing that 58% of medium enterprises in Italy, defined as those with 250 to 1,500 employees, are placing high priority on the adoption of Gen AI. An overwhelming 91% of these companies assign either high or moderate priority to Gen AI integration.

The study notes that investing in innovative technologies is seen as the optimal strategy for Italian mid-market firms to enhance resilience, particularly in times of economic uncertainty. According to the data, 36% of businesses surveyed view technology as a key component for maintaining resilience, while 34% believe in the importance of business innovation.

Carla Masperi, the CEO of SAP Italy, emphasised the transformative potential of AI for businesses: “Having the right technological platform is the foundation of all other strategies to combat uncertainty and build success. Business AI represents the biggest technological opportunity of the 21st century for Italian enterprises.” She highlighted the virtues of SAP Business AI, noting its relevance, reliability, and responsibility, which are accessible to organisations of various sizes. This AI not only aids in creating imagery or videos but also in automating processes, boosting productivity, and delivering rapid insights and forecasts.

Current Applications and Future Potential

More than half of Italian mid-market companies surveyed (51%) are setting high priorities for AI to innovate business models and create new revenue streams. Respondents foresee AI having a significant impact on supply chain and logistics processes (50%), data security and privacy (50%), employee training and skill development (47%), as well as decision-making and business operations, which are expected to become more agile and adaptive (46%).

Currently, AI is already being widely utilised among medium-sized Italian firms for various purposes. These include generating marketing and sales content (43%), fraud detection (43%), customer and supplier interaction, developing forecasts, budgeting, and investment planning (42%), as well as automating recruitment processes and monitoring regulatory compliance (41%).

Carla Masperi further illustrated the horizon of AI’s application, indicating that over 27,000 clients are leveraging SAP’s AI capabilities, including several thousand European companies. She anticipates that Joule, SAP’s natural language generative AI facilitator, will be used for 80% of the most common SAP tasks by the year’s end.

Challenges and Risks

Despite the promising adoption of AI, Italian mid-market firms face significant challenges concerning data management and integration. Survey participants identified the poor integration between systems (38%) and the lack of quality data (37%) as major hindrances to effective decision-making and change management. Additional obstacles include procurement and supply chain weaknesses (34%) and resistance to change among employees and managers (29%).

Data accuracy remains a critical concern, with 35% of companies citing the risk of acting on erroneous data, 33% noting a lack of transparency in AI outcomes, and 32% expressing concerns over privacy controls.

Carla Masperi emphasised the importance of collaborative technological partnerships, underlining that better data quality and richness lead to superior AI outcomes: “This is why partnering with a technological ally like SAP is crucial, as AI is already embedded in our applications driving the essential business processes.”

SAP Insights conducted the study through online interviews between March and April 2024, gathering input from senior business leaders spanning 20 countries and 28 different sectors. The respondents held roles ranging from directors to C-suite executives within organisations employing between 250 and 1,500 personnel.

Source: Noah Wire Services