A recent speech by the Governor of the Bank of Italy helps to shed light on the relationship between new technologies and manufacturing culture

 

Innovating in difficult and complex times, and doing it properly, is a challenge for all organisations. It raises a number of issues linked not only to new technologies, but also to the resilience and credibility of those involved. It is an issue that concerns not only production processes, but also financial processes. Fabio Panetta, Governor of the Bank of Italy, recently addressed this set of issues at the ‘Central Banks Response to Future Challenges: resilience, Credibility and Innovation’ conference in Kyiv on 21 September.

Taking two key aspects as his starting point, the role of central banks and that of new technologies, particularly artificial intelligence, Panetta reflected on innovation.

The Governor then explored one of the fundamental aspects for any business organisation (and indeed any institution): credibility. He defined this as a ‘fundamental resource’, and explained that the ways in which it is ‘built and preserved depend on the nature of the challenges we face. At times, credibility requires institutions to maintain a firm stance, safeguarding their independence and defending the policy framework, while preserving the ability to act under pressure,’ explained Panetta.  ‘On other occasions, however, it requires adaptation, such as rethinking the tools at our disposal, acquiring new skills, and responding to structural changes in the economy and the financial sector.’ Alongside credibility, Panetta highlighted the importance of technological change, particularly digitalisation and artificial intelligence (AI), which are transforming the economy, financial markets, and payment systems. A large part of an organisation’s credibility depends on its ability to understand and adapt to innovation, and

Fabio Panetta’s reasoning thus highlights the fundamental issue of the ability (including cultural) to adapt the actions of businesses and organisations to the pressures of changing markets and evolving technologies, which can sometimes be sudden. It is therefore a process of constant adaptation that we are compelled to undertake,  with a caveat that the Governor himself emphasises: ‘Adapting does not mean abandoning one’s core principles.’ Speaking of banks and monetary policy, Panetta thus offers a valid guideline for every sector of production: the ability to change in a credible way without abandoning the production culture that shaped the business in the first place.

The challenge of innovation

Fabio Panetta

10th Annual Research Conference of the National Bank of Ukraine and the Narodowy Bank Polski

Kyiv, 21 September 2026