Italy enacts AI law covering privacy, oversight and child access

In a landmark move, Italy's parliament has approved a sweeping new law that establishes extensive regulations for artificial intelligence, positioning the nation as the first in the European Union to align with the EU's innovative AI Act. This legislation, championed by Prime Minister Giorgia Meloni's administration, aims to prioritize human-centric and transparent AI practices while promoting innovation, cybersecurity, and privacy safeguards. The newly enacted law brings forth a set of rules that span various sectors, including healthcare, employment, public services, justice, education, and sports. It mandates that AI decisions must be traceable and subject to human oversight. Additionally, it imposes restrictions on AI access for individuals under the age of 14, requiring parental consent for such use. Alessio Butti, the undersecretary for digital transformation, emphasized the law's intent to place innovation within the framework of public interest, stating it is designed to steer AI development toward growth that respects citizens' rights and protections. The government has designated the Agency for Digital Italy along with the National Cybersecurity Agency as the primary authorities overseeing AI development, while existing regulatory bodies like the Bank of Italy and Consob will continue their roles. A significant aspect of the law includes severe penalties for the illegal distribution of AI-generated content, such as deepfakes, which could lead to prison sentences ranging from one to five years if harm is inflicted. The legislation also stipulates that any misuse of AI, including identity theft and fraud, will incur stricter penalties. Moreover, the law ensures that creative works produced with AI assistance are eligible for copyright protection, provided they demonstrate intellectual effort. AI-driven text and data mining is permitted only for non-copyrighted material or scientific research conducted by authorized entities. Financially, the law opens the door for up to 1 billion euros ($1.18 billion) to be invested from a state-backed venture capital fund, aimed at supporting small to medium enterprises and larger firms engaged in AI, cybersecurity, quantum technologies, and telecommunications. Critics argue that this funding is modest compared to international initiatives. In the healthcare sector, AI can play a role in assisting with diagnosis and patient care, though clinicians will maintain the ultimate authority over medical decisions, and patients must be kept informed. Additionally, employers are required to notify employees when AI technologies are in use in the workplace.