Fabio Panetta: Finance for innovation and artificial intelligence as drivers of development
Opening remarks by Mr Fabio Panetta, Governor of the Bank of Italy, at a conference organised by the Bank of Italy and the European Investment Bank, Rome, 2 July 2026.
Mr Fabio Panetta, Governor of the Bank of Italy, kicked off a conference jointly organized by Banca d'Italia and the European Investment Bank in Rome on July 2, 2026. The discussion revolved around innovation, artificial intelligence (AI), and finance as key drivers for growth in Italy and Europe. Panetta highlighted that AI has already integrated into various aspects of production, services, research, and daily life, advancing rapidly, necessitating swift action from firms, institutions, and the financial system.
Two recent developments were noted: the emergence of AI agents capable of performing complex tasks autonomously and portable devices with computing power that previously required specialized infrastructure. These advancements can expand AI's application scope, lowering costs and accelerating its adoption. Panetta emphasized that the widespread diffusion of AI could significantly contribute to reviving Italy's productivity, particularly in manufacturing where AI can optimize energy and material use, accelerate design processes, and enhance product quality.
Its impact extends beyond manufacturing, with potential benefits in medicine, such as enabling faster and more accurate diagnoses, improving care pathways, and accelerating drug development. However, AI's transformative impact will also reshape work organization, education, and decision-making processes. Panetta stressed that while some activities will undergo profound changes, new ones will emerge.
He emphasized the urgency of preparing for and managing this rapid transition by investing in skills, supporting exposed workers, and ensuring equitable benefits. Pope Leo XIV and President Mattarella underscored the importance of AI remaining at the service of people, dignity, responsibility, and freedom. Panetta noted that while firms will make significant intangible investments, they are risky with uncertain returns over time, underscoring the financial system's role in supporting AI innovation through patient finance, risk capital, and deeper markets.
Italy and Europe possess existing resources, but often fail to leverage them on a scale required for ambitious projects. Panetta stressed the need to strengthen capital mobilization towards innovative firms, transforming research into practical applications. The conference aimed to explore how AI can become a broad-based driver of development and the financial conditions necessary for this transformation in Italy and Europe.
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