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The Enrico Fermi Research Center - CREF promotes original and high-impact lines of research, based on physical methods, but with a strong interdisciplinary character and in relation to the main problems of the modern knowledge society.

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Intelligenza Artificiale
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The socio-economic impact and technological innovation of artificial intelligence

This project explores the transformative potential of Artificial Intelligence (AI) through an interdisciplinary approach that integrates computer science, network science, economics, and sociology. On one hand, we study the limitations and potential of AI to understand social, technological, and economic dynamics; on the other, we apply these models to conduct innovative investigations into complex issues such as the evolution of labor, the emergence of innovation trajectories, and the role of moral values in online debates. Activities include developing new continual and creative learning algorithms (Dreaming Learning, Lyapunov Learning), performing quantitative analyses of conceptual representations in language models, and employing LLMs to predict emerging trajectories of technological innovation. The goal is to foster a responsible adoption of AI capable of supporting strategic planning, sustainability, and collective progress.

Within the scope of this project, we propose to analyze the transformative potential of Artificial Intelligence (AI) through a markedly interdisciplinary approach that integrates Computer Science, Network and Complexity Science, economics, and sociology. The adopted perspective is twofold: first, we will investigate the potential and limitations of AI as an analytical tool for social, technological, and economic dynamics; second, we will utilize these methodologies to conduct innovative studies in these domains, moving beyond the predominant use of qualitative approaches in favor of a rigorous quantitative analysis, which is essential for addressing their intrinsic complexity.

Activities include developing new training methodologies for neural networks and conducting empirical studies on economically and socially relevant issues, such as the emergence of innovation trajectories (through patent analysis), the dynamics of AI substitution and complementarity in the labor market, and the evolution of opinions within online communities. Integrating quantitative and theoretical foundations with a literature review from diverse disciplines constitutes the essential element for rigorously addressing the outlined challenges.

The work within this project is divided into two macro-areas, schematically described below.

1. Potential and Limitations of AI

Use of LLMs to study and predict innovation dynamics. Specific applications to sustainability themes (industrial pollution, critical raw materials, energy transition).

The use of open-source Large Language Models (LLMs) enables the automated analysis of vast volumes of unstructured data (patents, publications, code) for the geographical and semantic mapping of technological skills. This approach is employed to forecast innovation trajectories through new combinations (recombinant innovation) and to connect policy recommendations with local territorial capabilities, particularly for environmental policies (e.g., critical raw materials and industrial pollution reduction).

Use of LLMs for the study of social phenomena within online communities.

We explore the feasibility of using LLMs to gather signals and map social dynamics (such as social unrest and inequality) from publicly accessible discourses on social networking platforms.

Theory of Artificial Creativity.

The research focuses on Continual Learning for the progressive integration of new information while avoiding Catastrophic Forgetting. Key contributions include Dreaming Learning (published at NeurIPS 2024), which mitigates Model Collapse and enables the controlled exploration of new information configurations. In support of this, the theoretical work First-Extinction Law for Resampling Processes provides an analytical description of Model Collapse. Furthermore, we develop Lyapunov Learning (published at ICML 2025), based on the Edge of Chaos, to extend the capabilities of Dreaming Learning to complex multidimensional variables (e.g., climate change). Practical applications include the Duetto project, an advanced system that utilizes Transformer architectures and vector quantization for the real-time analysis and anticipation of human movement in dance.

2. Socio-Economic Impact of AI

Impact on the labor market.

The objective is to provide a quantitative perspective on the impact of AI on labor, structured into three tasks:

  1. Measuring Occupational Exposure through the analysis of AI startup pitches;

  2. Identifying Emerging Skills by analyzing job postings and code repositories (GitHub);

  3. Studying Public Opinion and Ethics to understand the influence of social trust on AI adoption.

Methodologically, LLMs will be used to link startup descriptions (from datasets like Crunchbase) and code repository content (from readme files) with occupational activity descriptions (from O*NET) in order to measure research, development, and funding activities in the AI field aimed at automating specific tasks.

Human Values and AI Values

This area aims to develop “Responsible Artificial Intelligence” models that reflect local moral values, with the goal of curbing harmful content and fostering ethical interactions. The research analyzes how moral values influence the evolution of opinions in online communities and the extent to which the “irreducible core elements” of morality are represented and understood by AI algorithms, including BOTs.

Purpose and Goals

In this project, we aim to analyze the transformative potential of these tools in three directions:

  • Their social and economic impact;
  • Their ability to increase creativity and innovativeness;
  • The possibility of using them as tools to increase our understanding of economic and social phenomena

we will articulate the research along multiple lines:

  • The Analysis of the impact on the labour market. We will study the dynamics of the skills required by the labor market and how this is affected by the availability of new AI tools. Thanks to the forecasting and continuous learning techniques described below, we intend to maintain a “real-time” analysis of the dynamics and integrate it with the production of forecasting scenarios.
  • Use of LLM for the analysis of economic and innovation dynamics. Thanks to the growing availability of open-source LLMs, the automated analysis of enormous quantities of freely available unstructured information, such as websites, scientific publications and patents, becomes possible. One of this project’s objectives is to use these tools, with appropriate fine-tuning, to extract dynamic signals on the processes of technological innovation and economic development.
  • Use of LLM to optimise green transition policies. We can use LLMs to connect policy prescriptions with the actual availability of capabilities in the territories. For example, it is possible to connect patents with European legislation on reducing industrial pollution, or it is possible to reconstruct the need for critical raw materials to implement these policies.
  • Exploring techniques for learning non-stationary systems. As mentioned above, including new information in AI systems is still an unresolved issue in the panorama of modern learning techniques. The main aim in this area is to create systems capable of implementing dynamic learning, which is conservative in memorising previously learned information while quickly including new things in continuous learning processes.
  • Support for artistic creativity. A class of AI systems equipped with the above characteristics can codify and include artistic innovation processes as a non-stationary evolutionary process. In this area, we want to create an AI system capable of understanding, at different levels of complexity, human creative procedures to develop a constructive dialogue for bidirectional man-machine support for creativity
  • Representation and prediction of evolutionary systems. The study of specific evolutionary areas, such as the diffusion of AI in different research areas or the development of technological codes in the case of technological patents, allows us to understand the historical nature of these evolutions and anticipate the following areas that will involve these processes. In this case, the AI, in addition to including the news of the historical series, must be able to build probabilistic scenarios compatible with the past and plausible for future predictions.
  • Creativity in collective writing processes in a hybrid person-AI context. The characteristics of innovativeness of generative artificial intelligence and the consequences of their recurring use in writing texts, such as the reduction of surprise, a quality of a time series that describes the unexpected character of a given element given the previous ones. The work models of the hybrid person-AI creative process, in terms of organisation of the work phases and distribution of objectives aimed at improving the creative activity in the terms defined by the user (increasing the final quality of the product, enjoyment of the process, greater probability of innovation, etc.). The creation of AI tools is suitable for coordinating and curating collaborative writing processes.
  • AI to enhance economic analysis: e.g. BloombergGPT
  • LLM for innovation analysis (patents, papers)
  • LLM for web scraping of economic activity data (services, job ads) – with IFC, AirBnB, Translated.com

Contents and Methods

Analysis of technological and innovation dynamics. The process of knowledge exploration is widely documented through the production of scientific articles, patents and code repositories. The vastness and variety of this production make it impossible to trace the dynamics of innovation with traditional methods, except for macroscopic trends. However, a detailed knowledge of these dynamics allows anticipating imminent discoveries. Using LLM systems, we will build a mathematical representation of innovation concepts (embeddings) expressed in documents (scientific articles, patents, code repositories). We will study their dynamics and design prediction models based on semantic proximity.

Mapping of green technological skills. Techniques for reducing polluting emissions are the subject of numerous regulations. In particular, the European legislation on the reduction of industrial emissions is considered a reference standard at a global level. We aim to use LLM to connect the technical specifications detailed in European legislation with the production of patents. This will allow detailed mapping of these processes’ technological footprints and the related skills’ geographical availability.

 

Critical raw materials. We aim to integrate studies on sustainable transition and the use of innovative artificial intelligence methodologies based on recent studies connecting the production of individual technologies (in particular for adaptation and mitigation of climate change – de Cunzo et al., 2022) with the export of products (Pugliese et al., 2019). In particular, we intend to research critical raw materials (MPC) in technologies for the adaptation to and mitigation of climate change, through the study of the abstracts of the patents present in the Y02-Y04S technological fields through large language models sized, natural language processing (NLP) systems with billions of parameters that have demonstrated new abilities to answer reading comprehension questions, as well as generate creative texts or solve mathematical problems. The diffusion of green technologies represents a fundamental step for achieving policy objectives on climate change mitigation. Still, it involves a significant expansion of the production and trade of critical raw materials that are fundamental for their functioning and are currently irreplaceable, e.g. solar panels, wind turbines, electric vehicles, and energy-efficient lighting (International Energy Agency, 2021; Herrington, 2021; Hund et al., 2020; Kowalski and Legendre, 2023). MPCs are a series of raw materials of strategic importance and high supply risk identified by the European Commission, which continuously updates a list of these resources linked to today’s technology (European Commission, 2011, 2020a, 2020b). Our work could provide a comprehensive descriptive empirical analysis of the presence of CRM in green technologies, initially using text mining techniques on green patent descriptions and then with more complex language models. Combining this result with information on the countries where patents are filed makes it possible to identify which green technologies rely most on CRMs and where they are employed.

Furthermore, taking into account the production data of critical raw materials, it will be possible to better articulate the dependence of green technologies on these materials, for example, by including a concentration index of their production and, on the other hand, to geolocate the spatial distribution of these inputs and compare it with that of countries where MPC-dependent green technologies are employed. Preliminary analyses indicate that materials such as lithium, silicon, rare earth, cobalt and graphite are critical components for the development of green technologies (in particular, energy generation and transmission technologies and those related to the production or processing of goods) and certainly require careful monitoring due to the poor diversification of their production. Finally, we see a clear divergence between the producers of the raw materials necessary for developing green technologies and the countries developing these technologies. More advanced AI methodologies will allow us to refine the preliminary results and distinguish between the use of materials as inputs necessary for the construction of technologies or their presence within the patent descriptions that aim to remove environmental pollution and the recycling of MPCs.


The impact of AI on the labour market. Job advertisement data is considered one of the best tools for observing the dynamics of employer demand for skills. These advertisements are collected in large databases of poorly structured data. Using language modelling tools, it is possible to extract information from these advertisements, such as the sector to which the advertisement relates, the job and the skills required. In this project, we will use these databases to study (also in real time) how the emergence and diffusion of AI tools is changing the demand for skills at a geographical and sectoral level.

 
Web scraping for services. Unlike data on trade in goods, data on trade in services are poorly available, not harmonised and generally unreliable. This severely limits economic analysis, especially in the area of economic complexity. In collaboration with Translated.com, the world’s largest company in the translation market, based in Rome, we intend to use LLM to develop an analytical pipeline to identify and geolocate service providers through systematic scraping of large databases of web pages (CommonCrawl). This activity will also involve the International Finance Corporation, with which the CREF has signed a Memorandum of Understanding and which has expressed interest in the possibilities of analysing the service economy in emerging markets. A first pilot project will be carried out in Cape Verde.
DreamingLearning. This AI learning technique is currently being developed and finalised. It makes it possible to endow a generative neural network with the property of anticipating new information that may arrive at the input of such systems, allowing new features to be very easily incorporated into the existing knowledge base. Furthermore, its theoretical description will enable us to establish a precise link with Bayesian approaches for automatically describing appropriate priors. These characteristics allow the machine to generalise the training information in a very effective way while at the same time focusing attention on the relevant innovations in terms of their impact on the non-stationary temporal sequence under analysis.

Evolutionary neural systems. The advantage demonstrated in the application of Dreaming Learning leads us to believe that neural systems equipped with architectures less tied to the feed-forward model and in which information can circulate more freely within the network are more effective in understanding innovation dynamics flexibly and adaptively. In this direction, we intend to develop new AI systems based on evolutionary dynamics, in which the architecture can adapt effectively and naturally to the proposed problem.


WeWrite. An innovative collaborative non-linear writing platform that facilitates the translation of complex ideas into usable text forms, such as scientific articles and pieces of fiction, but also navigable text networks, as in the case of interactive games. The platform itself, or the skills developed in its construction, can form the basis for a study of the distribution of work in a hybrid writing environment, suggesting easily explorable alternatives and allowing us to reconstruct the history of the creative process and to credit the work of the various participants, human or AI.
Metrics for identifying creative phases in writing processes New work on the writing process enables us to use time-ordered sequences of texts to identify the amount of exploration, in terms of ideas and rhetorical resolutions, that the writing team undertakes between one version of the text and the next. It is possible to develop a writing assistant that is aware of the creative process and able to provide guidance based on the writer’s path, using these techniques in conjunction with new generative artificial intelligence tools.

FC – International Finance Corporation

Translated.com

Mamacrowd

Sony CSL Rome participates in the STARTS-AIR project at the croospath of Art and Science. 

Aterballetto, for the development of performative artistic interaction technologies between performers and AI systems to support natural creativity.

Linguistics/Centre for Behaviour and Evolution (Christine Cusckley)

CSL-Rome is part of the French “ScientIA” project on studying the impact of Artificial Intelligence on other scientific discipline

CREF Researchers

Andrea Tacchella, Angelica Sbardella, Francesco De Cunzo (CREF)

Sony Researchers 

Alessandro Londei, Vittorio Loreto, Ruggiero Lo Sardo (CREF – SONY)

De Cunzo, F., Petri, A., Zaccaria, A., & Sbardella, A. (2022). The trickle down from environmental innovation to productive complexity. Scientific Reports, 12(1), 22141.
Napolitano, L., Sbardella, A., Consoli, D., Barbieri, N., & Perruchas, F. (2022). Green innovation and income inequality: A complex system analysis. Structural Change and Economic Dynamics, 63, 224-240.
Caldarola, B., Grazzi, M., Occelli, M., & Sanfilippo, M. (2023). Mobile internet, skills and structural transformation in Rwanda. Accepted in Research Policy.
Bruno, M., Lambiotte, R., & Saracco, F. (2022). Brexit and bots: characterizing the behaviour of automated accounts on Twitter during the UK election. EPJ Data Science, 11(1), 17.
Patuelli, A., & Saracco, F. (2023). Sustainable development goals as unifying narratives in large UK firms’ Twitter discussions. Scientific Reports, 13(1), 7017.