A new report from Italy’s national statistics agency ISTAT finds that 16.4% of Italian firms with at least 10 employees used some form of artificial intelligence in 2025, up sharply from 8.2% in 2024 and 5.0% in 2023. Adoption is heavily skewed toward larger enterprises: more than half of companies with 250+ employees now deploy AI, compared with about 15.7% of smaller firms. The most common use cases are text data extraction, generative AI for language and images, and speech‑to‑text tools, indicating that practical, workflow‑oriented applications are beating out moonshot projects. Companies that haven’t adopted AI cite a lack of skills, unclear regulation, data‑protection worries and high costs as key obstacles, and a notable minority still say AI is of “no use” to them. The findings highlight a growing digital divide inside Europe’s SME‑heavy economies: while national champions race ahead with AI, the long tail of smaller businesses risks being left behind without targeted support and upskilling.