Italy's Pioneering AI Regulation: Law No. 132/2025

Italy’s Law No. 132/2025: A New Era in AI Regulation

On September 23, 2025, Italy enacted Law No. 132/2025, marking a significant milestone as the first national legislation in Europe dedicated to regulating artificial intelligence (AI). Set to come into force on October 10, 2025, this law aims to complement the EU’s AI Act by introducing detailed, sector-specific rules that govern AI deployment across critical areas such as healthcare, public administration, justice, labor, intellectual property, and criminal law.

Key Provisions and Objectives

Italy’s Law No. 132/2025 establishes a comprehensive legal framework to ensure AI technologies are developed and used responsibly while protecting fundamental rights, particularly data privacy and democratic integrity. Among its core principles, the law explicitly prohibits AI applications that could interfere with democratic institutions or distort public debate, addressing growing concerns about AI’s potential misuse in the political sphere.

The legislation also emphasizes transparency, accountability, and governance in AI systems. It demands clear responsibilities for AI providers and users, requiring robust safeguards against bias, discrimination, and harmful outcomes. Furthermore, the law mandates organizations to adapt their internal compliance models, especially regarding administrative liability under Italy’s Legislative Decree No. 231/2001, which deals with corporate criminal responsibility.

Criminal Penalties and Enforcement

A notable aspect of the law is the introduction of criminal penalties for the harmful use of AI, including misuse of deepfakes and other manipulative technologies. The law prescribes prison sentences of up to five years where AI misuse causes harm, signaling a strong stance against malicious AI activities. This criminal framework aims to deter bad actors and reinforce public trust in AI technologies by ensuring accountability for wrongdoing.

Support for Innovation and Investment

To foster innovation, the Italian government is backing AI and cybersecurity firms with substantial public funding. Up to €1 billion will be invested through equity and quasi-equity instruments aimed at supporting innovative small and medium-sized enterprises (SMEs) with high growth potential in AI, cybersecurity, quantum technologies, and telecommunications sectors. This financial boost is designed to position Italy as a competitive hub for AI development in Europe, balancing regulation with economic growth incentives.

Sector-Specific Impact

The law’s sector-specific approach tailors AI governance to the unique challenges of different domains:

• Healthcare: Ensuring AI systems used in medical diagnostics and treatment meet strict safety and privacy standards.
• Public Administration: Regulating AI tools that impact citizen services to guarantee fairness and transparency.
• Justice: Preventing AI misuse in judicial processes to uphold legal integrity.
• Labor: Addressing AI’s impact on employment, workplace surveillance, and workers’ rights.
• Intellectual Property and Criminal Law: Clarifying AI-related responsibilities to prevent intellectual property violations and cybercrime.

Context and Implications

Italy’s AI Law No. 132/2025 is a pioneering effort that reflects a broader European trend toward comprehensive AI regulation. While the EU AI Act sets a continental baseline, Italy’s legislation goes further by detailing operational rules and criminal liabilities at a national level. This approach provides clarity to companies operating in Italy, urging them to upgrade compliance frameworks and risk management strategies related to AI.

The law also signals a balancing act between encouraging technological innovation and safeguarding societal values. The government’s substantial investment plan underscores its commitment to nurturing AI innovation while the legal provisions ensure that such technologies do not undermine democratic processes, data privacy, or public safety.

Visual Representations

Images relevant to this topic include:

• Official logos of the Italian Parliament and Ministry of Economic Development, which oversaw the law’s approval.
• Diagrams illustrating the AI governance framework under Law No. 132/2025 highlighting compliance requirements and sector-specific rules.
• Infographics on criminal penalties related to AI misuse, such as deepfake regulation.
• Visuals of AI technologies in healthcare and public administration contexts specific to Italy’s regulatory environment.

Italy’s Law No. 132/2025 marks a significant milestone in AI regulation by setting a detailed national standard that complements EU-wide rules while addressing Italy’s specific legal, ethical, and economic priorities. Its comprehensive scope—from criminal penalties to investment incentives—positions Italy as a leader in responsible AI governance in Europe. Companies and innovators are now tasked with aligning their AI strategies with this robust legal framework as the law takes effect in October 2025.