Embracing the Digital Transition:the Adoption of Cloud Computing and Ai by Italian Firms | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Embracing the Digital Transition:the Adoption of Cloud Computing and Ai by Italian Firms Lorenzo Bencivelli, Sara Formai, Elena Mattevi, Tullia Padellini This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-8148009/v1 This work is licensed under a CC BY 4.0 License Status: Under Review Version 1 posted 4 You are reading this latest preprint version Abstract The diffusion of advanced digital technologies is reshaping firm organization and performance, yet comprehensive evidence on their adoption remains scarce. This paper draws on data from the Bank of Italy’s business surveys to assess the uptake of cloud computing and artificial intelligence (AI) among Italian firms. As of early 2024, over 50 per cent of firms with at least 20 employees had adopted cloud services, showing minimal variation across sectors, and suggesting that the technology is becoming standard infrastructure. AI adoption remains more limited—rising from 4 per cent in 2020 to 13 per cent in 2024—and tends to be experimental or task-specific. Adoption rates are strongly associated with firm size, export activity, group affiliation, and innovation capacity. Managerial quality and prior digital investments also matter for AI uptake. Expectations around generative AI point to job transformation rather than displacement. Accordingly, the analysis reveals that digital technology adoption is positively correlated with realized and expected employment growth. JEL Classification: O33, D22, L86, J21. digital technologies cloud computing artificial intelligence generative AI firm performance business surveys Full Text Cite Share Download PDF Status: Under Review Version 1 posted Reviewers agreed at journal 14 Dec, 2025 Reviewers invited by journal 12 Dec, 2025 Editor assigned by journal 04 Dec, 2025 First submitted to journal 03 Dec, 2025 You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. We do this by developing innovative software and high quality services for the global research community. Our growing team is made up of researchers and industry professionals working together to solve the most critical problems facing scientific publishing. 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