Published by Global Banking & Finance Review®
Posted on September 17, 2025
2 min readLast updated: January 21, 2026
Add as preferred source on GoogleItaly enacts a comprehensive AI law focusing on privacy, oversight, and child access, aligning with the EU's AI Act.
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)
The law establishes human-centric, transparent, and safe AI use as core principles while emphasizing innovation and cybersecurity.
The law limits AI access for individuals under 14 years old, requiring parental consent for use.
New criminal provisions target unlawful dissemination of AI-generated content, with penalties ranging from one to five years in prison if harm is caused.
The law authorizes up to 1 billion euros from a state-backed venture capital fund for equity investments in companies involved in AI and cybersecurity.
In healthcare, AI can assist with diagnosis and care, but doctors retain the final decision-making authority, and patients have the right to be informed.
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