Italy has made history by becoming the first European Union country to approve a comprehensive law regulating Artificial Intelligence (AI). On 17 September 2025, the Italian Parliament approved Bill S. 1146-B, later enacted as Law No. 132 of 23 September 2025 . By combining strict rules with investment in innovation, Italy has set a clear precedent for other EU nations to follow. Moreover, this balanced approach signals a shift towards a new era of AI governance in Europe.
Italy’s Human-Centric Approach to AI
Prime Minister Giorgia Meloni announced the law as a decisive step in shaping AI’s role in Italian society. Her government stressed that the framework promotes human centred, transparent, and safe AI while driving technological progress.
Importantly, the legislation highlights:
- Innovation – with €1 billion in state backed funding for AI, cybersecurity, and emerging technologies.
- Cybersecurity – by tackling risks such as data breaches and AI enabled crime.
- Privacy and data protection – by shielding citizens from intrusive or harmful AI applications.
Therefore, Italy demonstrates that effective regulation can encourage responsible AI adoption without stifling innovation.
Wide Sector Coverage
Unlike narrower frameworks, Italy’s law covers multiple critical sectors. These include:
- Healthcare
- Employment
- Public administration
- Justice
- Education
- Sport
In every sector, organisations must ensure AI systems remain traceable, transparent, and subject to human oversight. Consequently, humans will always remain accountable for decisions, preventing unchecked reliance on algorithms.
Intellectual Property and Data Use
The law also regulates how AI interacts with intellectual property and data. Specifically, it establishes that:
- AI-assisted works gain protection only if they result from genuine human intellectual effort.
- Text and data mining is lawful only for non-copyrighted content or approved scientific research.
- Restrictions apply to mass scraping of copyrighted data to train AI models.
As a result, the legislation responds directly to growing concerns about generative AI training methods.
Strong Penalties for Misuse
Crucially, Italy has introduced criminal sanctions for AI misuse. The law states that:
- The unlawful dissemination of misleading AI content, such as deepfakes, that causes unjust harm faces prison sentences of one to five years.
- Courts will impose tougher penalties for crimes facilitated by AI, including fraud and identity theft.
- Children under 14 may only access AI tools with parental consent, adding stronger online safety for younger users.
By doing so, Italy sends a clear signal that AI misuse will not go unpunished.
Worker Rights and AI in the Workplace
The law also protects employees. Employers must inform staff when they use AI in recruitment, monitoring, or performance evaluation. Workers retain the right to challenge AI-driven decisions and request human review.
In addition, the framework prevents algorithmic discrimination, safeguards privacy, and requires companies to respect employee dignity and data security. This ensures fairness and accountability in workplaces where AI tools are increasingly common.
Enforcement and Oversight
To ensure compliance, Italy has appointed several supervisory bodies. These include:
- The Agency for Digital Italy (AgID) and the National Cybersecurity Agency (ACN), which oversee digital governance and security.
- An Interministerial Committee for Digital Transition, responsible for updating the national AI strategy.
- An Observatory on AI in the Workplace, which monitors the impact of AI on employment.
- The Data Protection Authority (Garante) and sector regulators, such as the Bank of Italy, which retain oversight in their areas.
Together, these institutions create a multi-layered governance system designed to ensure effective enforcement.
Why Italy’s Law Matters for Europe
Italy’s pioneering legislation matters because it goes further than the EU AI Act. It introduces:
- Stricter penalties for harmful AI misuse.
- Broader sectoral coverage.
- Clear worker protections against algorithmic bias.
- Stronger rules on intellectual property and training data.
Therefore, Italy has positioned itself as a European leader in AI regulation, shaping how other member states may legislate in the future.
Final Thoughts
Italy’s AI law represents a landmark in Europe’s digital governance. By combining innovation funding with strict accountability measures, Italy proves that countries can regulate AI responsibly while supporting growth. As Europe adapts to the future of artificial intelligence, Italy’s leadership will shape the standards of ethical and responsible AI use.
How 360 Business Law Can Help
At 360 Business Law, we recognise that AI regulation presents both challenges and opportunities. Our expert legal team advises businesses on technology law, compliance, and risk management. With clear and practical guidance, we ensure our clients can embrace innovation while protecting themselves from regulatory, legal, and reputational risks. By working with us, your business can move forward with confidence and compliance in the age of AI.