Italy passes first EU-aligned AI law with $1.18B tech fund

Italy’s parliament has approved comprehensive artificial intelligence legislation, making it the first European Union country to enact AI regulations fully aligned with the EU’s landmark AI Act. Prime Minister Giorgia Meloni’s government positioned the law as establishing human-centric, transparent AI use while emphasizing innovation, cybersecurity and privacy protections across multiple sectors.

Key provisions: The legislation introduces cross-sector rules covering healthcare, work, public administration, justice, education and sport, requiring traceability and human oversight of AI decisions.

• AI access for children under 14 requires parental consent.
• New criminal provisions target unlawful dissemination of AI-generated content like deepfakes, punishable by one to five years in prison if harm occurs.
• Illegal AI use will lead to tougher penalties for identity theft and fraud.

Regulatory structure: The government designated the Agency for Digital Italy and the National Cybersecurity Agency as national AI authorities, while existing watchdogs retain their powers.

• The Bank of Italy and market regulator Consob maintain their oversight capabilities.
• Works created with AI assistance receive copyright protection if they result from intellectual effort.
• AI-driven text and data mining is permitted only for non-copyrighted content or scientific research by authorized institutions.

Financial backing: The law authorizes up to 1 billion euros ($1.18 billion) from a state-backed venture capital fund for equity investments in companies active in AI, cybersecurity, quantum technologies and telecoms.

• Critics argue the resources are insufficient compared to international initiatives.

Sector-specific rules: In healthcare, AI can assist with diagnosis and care under specific conditions, with doctors retaining final decision-making authority and patients maintaining the right to be informed.

• Employers must inform workers when AI is being deployed in workplace settings.

What they’re saying: “This 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.