Insight

Innovation, Benefits, and Challenges of AI Integration in Companies

IN THE DIGITAL AGE, ARTIFICIAL INTELLIGENCE (AI) PLAYS A PIVOTAL ROLE IN RESHAPING COMPANIES THROUGH AUTOMATION, DATA ANALYSIS, AND INNOVATION. IT PERSONALISES EXPERIENCES AND GUIDES DECISION-MAKING, BUT DEMANDS A CAREFUL BALANCE WITH ETHICS TO ENSURE SUSTAINABLE PROGRESS.

Artificial Intelligence, a branch of computer science, focuses on designing systems and algorithms that emulate various human abilities, including reasoning, learning, perception, and adaptability. In the business realm, AI has the potential to revolutionise information management, process automation, and data analytics. This fuels the development of cutting-edge technologies like advanced robotics, self-driving vehicles, and industrial automation, leading to a significant enhancement in efficiency, accuracy, innovation, and overall technological progress. 

According to MarketsandMarkets, the global AI market is projected to reach $309.6 billion by 2026, with a 40% CAGR from 2021. Italy, too, has witnessed growth, recording 500 million euros in 2022, marking a 32% YoY increase.1

AI empowers businesses to deliver highly personalised experiences, enhancing customer satisfaction and fostering deeper relationships. Additionally, it serves as a tool for guiding data-driven decision-making, offering concrete information supported by accurate analysis and reducing uncertainty in business choices. The European Parliament estimates a potential increase in labour productivity thanks to AI, ranging from 11% to 37% by 2035.2

The integration of AI within a company brings several advantages, including increased operational efficiency through advanced and timely data analysis, uninterrupted monitoring and and a clear competitive edge over other companies in the same sector. However, it also poses challenges. Initial costs, the need for employee training, and varying reactions to AI usage are among the hurdles. 

Artificial Intelligence is rapidly advancing in various domains, including Cyber Security. In this field, AI solutions play a crucial role in functions like detecting and preventing network traffic anomalies, as well as expediting and automating responses to various types of incidents. Additionally, in the realm of the Internet of Things, Artificial Intelligence contributes to the development of smart home solutions.3


1 IlSole24ore, post by Fabrizio Milano D’Aragona, 24 April 2023, “Intelligenza Artificiale e crescita delle imprese: non solo ChatGPT”.
2 https://www.europarl.europa.eu/news/en, Artificial intelligence: threats and opportunities, Updated on: 28 June 2023.
3 Osservatori.net, ARTIFICIAL INTELLIGENCE (AI) Come funziona, applicazioni e impatti sulla società.


Striking a balance between human interaction and the use of Artificial Intelligence is critically important in implementing advanced technologies within companies. Despite AI bringing automation, advanced analysis, and operational optimisation, it is crucial to maintain a fundamental role for human skills.  While human abilities like creativity, ingenuity, empathy, and contextual understanding are challenging for machines to imitate, AI excels in conducting thorough analyses of historical data to support data-driven decisions, yet it may struggle to comprehend subtle emotional and social nuances. Therefore, striking a balance between human interaction and the use of AI is fundamental for organisations.

Artificial intelligence systems are frequently applied in various business sectors, including production processes, e.g., predictive maintenance or production quality control (31.8%), IT security (26.6%), marketing or sales, e.g., customer service functions or customised promotional campaigns (24%), and business management through data analysis for supporting investments or making sales forecasts (21.6%).4 In additional, there is a considerable gap in the technological approach based on the size of the company. On the one hand, the percentage of large companies engaging in at least one AI initiative is increasing (59%, +6% on 2020). On the other hand, only 6% of SMEs have taken a similar path. Specifically, 4% of these instances involve isolated experiments, while only 2% are identified as full-scale projects.5

The journey toward the responsible and innovative use of AI requires dedication, flexibility, and mindfulness. Within the European Union, AI has emerged as a key concern, necessitating regulatory measures to guarantee optimal conditions for the advancement and application of this groundbreaking technology. The objective is to guarantee that AI systems employed in the EU adhere to standards of security, transparency, traceability, non-discrimination, and environmental friendliness. The regulation of artificial intelligence within the European Union is governed by the AI Act, representing a pioneering legislative initiative globally.6


4 Istat.it, National Institute of Statistics, Enterprise and ICT, 11 January 2022.
5 Osservatori.net, Cresce il mercato dell’Intelligenza Artificiale in Italia, 3 February 2022.
6 European Parliament, https://www.europarl.europa.eu/news/en/headlines/society/20230601STO93804/eu-ai-act-first-regulation-on-artificial-intelligence, EU AI Act: first regulation on artificial intelligence, 13 June 2023.

The proposal for the regulation was put forth in 2021, and a conclusive agreement with the Council of the European Union and the European Commission was reached on 23 June 2022. The AI Act, as part of this regulation, is legislation aimed at establishing a clear and consistent legal framework for the use of Artificial Intelligence within the EU. Key provisions of the act encompass rules for categorising high-risk AI systems, transparency and documentation requirements for AI developers, and an oversight system to ensure compliance with regulations. The primary objective is to strike a balance between fostering innovation in AI and safeguarding fundamental rights and the security of European citizens, marking a significant milestone in the regulation of this emerging technology. Moreover, the legislation seeks to align the use of Artificial Intelligence with major international standards, including ISO and IEC.7 

Looking ahead, it is crucial to comprehend the professions most affected by this technological revolution and evaluate its broader societal implications. One thing is certain: innovation is not a threat but a necessity.8


7 Standardizing AI – the case of the European Commission’s Proposal for an Artificial Intelligence Act, Erbes Martin, 2021, https://www.zbw.eu/econis-archiv/bitstream/11159/482159/1/EBP07846210X_0.pdf
8 Osservatori.net, ARTIFICIAL INTELLIGENCE (AI) Come funziona, applicazioni e impatti sulla società.

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