Published by Global Banking and Finance Review
Posted on September 17, 2025
ROME (Reuters) -Italy's parliament on Wednesday approved a new law covering artificial intelligence, making it the first European Union country with comprehensive AI regulations aligned with the EU's landmark AI Act.
Prime Minister Giorgia Meloni's government spearheaded the legislation saying it establishes human-centric, transparent and safe AI use as core principles while emphasising innovation, cybersecurity and privacy protections.
The law introduces cross-sector rules covering healthcare, work, public administration, justice, education and sport, requiring traceability and human oversight of AI decisions.
It also limits AI access for under-14s to parental consent.
"This (law) brings innovation back within the perimeter of the public interest, steering AI toward growth, rights and full protection of citizens," said Alessio Butti, the undersecretary for digital transformation.
The government designated the Agency for Digital Italy and the National Cybersecurity Agency as national authorities on AI development, while watchdogs including the Bank of Italy and market regulator Consob retain their powers.
New criminal provisions target unlawful dissemination of AI-generated content, such as deepfakes, punishable by between one to five years in prison if it causes harm. Illegal AI use will also lead to tougher penalties for offenses including identity theft and fraud.
On copyright, works created with AI assistance are protected if they result from intellectual effort, while AI-driven text and data mining is allowed only for non-copyrighted content or scientific research by authorised institutions.
The law authorises up to 1 billion euros ($1.18 billion) from a state-backed venture capital fund for equity investments in small-to-medium enterprises and large companies active in AI, cybersecurity, quantum technologies and telecoms.
Critics have said the resources being made available are puny compared with international initiatives.
In healthcare, AI can assist diagnosis and care under conditions, with doctors retaining final decision-making and patients' maintaining the right to be informed.
For workplaces, the law requires employers to inform workers when AI is being deployed.
($1 = 0.8440 euros)
(Reporting by Crispian Balmer; Editing by Alvise Armellini)
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