Italy’s Law No. 132, widely referred to as the Italian AI Act, came into force on October 10, 2025, placing the country at the forefront of AI regulation within the EU. The statute introduces a comprehensive national framework governing data use, algorithms, and AI training models. At least one implementing decree is expected by October 2026 to establish a coordinated structure for these areas.
Italy is the first member state of the EU to adopt a broad national framework dedicated to AI. With the rules now fully applicable, employers are moving beyond preparatory reviews and into operational compliance, reassessing how AI tools are deployed across the workplace.
The national legislation operates alongside the EU AI Act, which classifies AI systems used in employment-related decisions as high risk. Under the regulation, systems that influence hiring, promotion, performance reviews, or termination automatically fall into this category. That designation brings a set of strict requirements, including formal risk assessment procedures, quality controls for data, detailed technical documentation, audit trails, transparency obligations, and meaningful human supervision over automated outcomes.
Principles such as openness, personal data protection, gender equality, digital security, and accessibility are now enforceable standards. They shape how AI can be introduced into hiring, performance reviews, task assignments, and dismissal procedures.
When combined with Legislative Decree No. 104/2022 (the Transparency Decree), the compliance burden grows. Businesses using AI in workforce management or human resources must meet expanded disclosure and oversight obligations.
Employers are required to inform workers in advance about how AI systems function and what data they rely on. Any substantial change to those systems must be communicated at least 24 hours before it takes effect. Trade union representatives must receive the same information. Companies must also guarantee that automated decisions are subject to effective human control and that no discriminatory outcomes arise.
The law goes further by mandating that explanations be delivered in straightforward, accessible language. Workers must be able to understand how algorithmic decisions are made, what risks are involved, and what potential consequences may follow. They are also entitled to request clarification and ask for a human review of decisions driven by AI tools.
Noncompliance carries financial consequences. Administrative penalties can reach up to 1,500 euros ($1,765) per employee, with additional recurring fines and further sanctions if information obligations toward unions are breached.
The law also creates a dedicated committee within the Ministry of Labor and Social Policies tasked with monitoring the impact of AI on employment, shaping regulatory strategies, and identifying industries most exposed to digital transformation.
Data protection rules remain central. Whenever AI involves personal information, the GDPR applies in full. Employers must identify a lawful basis for data use, respect principles of purpose limitation and data minimization, and conduct impact assessments where required, especially for systems that systematically evaluate employees. Individuals retain the right to human intervention, to express their views, and to challenge decisions made solely through automated processing that have significant effects.
Companies operating in Italy are advised to review existing AI applications, update internal policies and notices, ensure GDPR compliance, and seek legal guidance where necessary. With the law now active, organizations face a decisive period to align technology practices with binding legal standards before further regulatory clarification and heightened oversight arrive.
While the new law in Italy mainly focuses on workplace issues, growth-focused businesses like Core AI Holdings Inc. (NASDAQ: CHAI) are likely to study any future regulatory developments in the different markets they have interests in so that they align their products and operations with those changes.
About AINewsWire
AINewsWire (“AINW”) is a specialized communications platform with a focus on the latest advancements in artificial intelligence (“AI”), including the technologies, trends and trailblazers driving innovation forward. It is one of 75+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, AINW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists, and the general public. By cutting through the overload of information in today’s market, AINW brings its clients unparalleled recognition and brand awareness.
AINW is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from AINewsWire, text “AI” to 888-902-4192 (U.S. Mobile Phones Only)
For more information, please visit www.AINewsWire.com
Please see full terms of use and disclaimers on the AINewsWire website applicable to all content provided by AINW, wherever published or re-published: https://www.AINewsWire.com/Disclaimer
AINewsWire
Los Angeles, CA
www.AINewsWire.com
310.299.1717 Office
Editor@AINewsWire.com
AINewsWire is powered by IBN