Italy’s parliament on Wednesday passed a sweeping new law regulating artificial intelligence, making it the first country in the European Union to adopt legislation fully aligned with the EU’s AI Act.

Prime Minister Giorgia Meloni’s government led the push for the law, calling it a framework that balances innovation with responsibility. It enshrines human-centric, transparent, and safe AI use as guiding principles while prioritising cybersecurity, privacy, and technological growth, as per a report by Indian Express.

Broad scope across sectors

The new rules apply across key areas including healthcare, work, public administration, justice, education, and sport. They require human oversight and traceability of AI-driven decisions, with an added safeguard: children under 14 can only access AI tools with 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, Italy’s undersecretary for digital transformation.

To oversee implementation, the government has designated the Agency for Digital Italy and the National Cybersecurity Agency as national authorities for AI. Sector regulators like the Bank of Italy and Consob will continue to exercise their powers.

Criminal provisions and copyright rules

The legislation introduces criminal penalties for the illegal dissemination of harmful AI-generated content, such as deepfakes, with prison terms ranging from one to five years. It also increases penalties for crimes like identity theft and fraud when AI tools are used unlawfully.

On copyright, the law recognises protection for AI-assisted works if they demonstrate human intellectual effort. AI-based text and data mining is permitted only on non-copyrighted material or for scientific research by authorised institutions.

Economic and workplace measures

To encourage domestic innovation, the government authorised up to €1 billion ($1.18 billion) from a state-backed venture capital fund to invest in companies working on AI, cybersecurity, quantum technology, and telecoms. Critics, however, argue that the resources remain modest compared to global AI funding initiatives.

In healthcare, AI may be used to support diagnosis and treatment, but doctors must retain final decision-making authority, and patients must be fully informed. For workplaces, employers are required to notify workers when AI systems are deployed.