Italian small and medium-sized enterprises have significantly closed the technology adoption gap with the rest of the European Union, narrowing the disparity by nearly 40% over the past year.

The progress is captured in the Sme-DigIX, a digital transformation index compiled by WEF, which tracks the integration of advanced technologies across the bloc's smaller business segments.

This trend aligns with broader domestic data showing Italy's artificial intelligence market expanding by 50% year-on-year to €1.

While Italy remains below the EU average in overall digital maturity, the pace of improvement marks a distinct acceleration.

This trend aligns with broader domestic data showing Italy's artificial intelligence market expanding by 50% year-on-year to €1.8 billion, driven largely by PMIs seeking to modernize traditional operations.

The shift suggests that regulatory incentives and private investment are beginning to yield tangible operational changes in the Italian private sector.

The development stands in contrast to the wider macroeconomic backdrop in the euro zone, where private sector activity contracted for a third consecutive month in June.